Are you considering buying a home but not sure which mortgage option is right for you? Here are some of the most common types of home purchase mortgages to help you make an informed decision:

1. Conventional mortgage: A conventional mortgage is a loan that is not insured or guaranteed by the government. These loans are typically offered by private lenders, such as banks and credit unions, and they often have stricter credit and income requirements than other types of mortgages. However, they can offer competitive interest rates and terms.
2. Federal Housing Administration (FHA) loan: An FHA loan is a mortgage that is insured by the Federal Housing Administration. These loans are designed to help first-time homebuyers or those with less-than-perfect credit secure financing. FHA loans typically require a lower down payment (as low as 3.5% of the purchase price) and have more flexible credit and income requirements than conventional mortgages. However, they may come with higher interest rates and mortgage insurance costs.
3. Veterans Affairs (VA) loan: A VA loan is a mortgage that is guaranteed by the Department of Veterans Affairs. These loans are available to military veterans, active duty service members, and certain surviving spouses, and they are designed to help make homeownership more accessible. VA loans do not require a down payment and often have more relaxed credit and income requirements than other types of mortgages. However, they may have higher closing costs and require the borrower to pay a VA funding fee.
4. Adjustable-rate mortgage (ARM): An adjustable-rate mortgage is a loan with an interest rate that can change over time. These loans typically start with a lower interest rate than fixed-rate mortgages, but the rate can increase (or decrease) after a certain period of time, based on market conditions. ARMs can be a good option for borrowers who expect to sell their home or refinance before the rate adjusts. However, they also carry more risk, as the borrower could end up with a higher monthly payment if rates go up.

When choosing a mortgage option, it’s important to consider your financial situation, long-term goals, and risk tolerance. KuberFi Mortgage experts excel in finding the right options for you through digging several wholesale lender rates and pricing.

With access to a wide range of loans and lenders, as an independent mortgage shop, KuberFi is able to help homeowners obtain the best loans and to save borrowers time and money.