Getting a Mortgage – VA, FHA, USDA, and Conventional Loans in Mount Laurel

In Mount Laurel, there are several different types of mortgages that are available to potential buyers.  The four main mortgages that buyers will have to choose from are VA, FHA, USDA and Conventional Loans.  Each of these types of mortgages have pros and cons, and some buyers may qualify for one, but not another.

 

 

 

 

 

 

1. VA Loans:

VA Loans are available for both active duty service members as well as veterans.  Part of the qualification process will require a certificate of eligibility as well as certain requirements such as making the home owner occupied, as opposed to an investment where you rent the property.  The rates offered are also ver y competitive, typically lower than conventional mortgages.  In addition, buyers are able to have a lower credit score starting at 620.  Lastly, if you qualify for a VA loan in Mount Laurel, you will be able to avoid having to make a down payment as well as not having to pay mortgage insurance, otherwise known as PMI.  For more information on the VA loans in Mount Laurel and if you qualify, click here.

2. FHA Loans:

Another loan that is popular in Mount Laurel is a FHA loan, which is offered from the Federal Housing Administration.  These loans are offered to potential buyers who do not qualify for a VA loan, and are looking for a way to purchase a home with little money down.  Buyers will need to make a 3.5% down payment in order to qualify for this type of loan, but can also ask for help in closing costs from the seller.  Similar to the VA loan, Mount Laurel buyers can qualify for this type of loan with a 580 credit score.  These types of loans are ideal for buyers who are in low to middle income who cannot qualify for a conventional mortgage.  One downfall of the program is buyers using FHA financing will need to pay mortgage insurance as well as annual premiums.  For more information on FHA loans in Mount Laurel and if you qualify, click here.

3. USDA Loans:

A third option for buyers looking for homes for sale in Mount Laurel, is a USDA Loan.  A USDA loan is supported from the US Department of Agriculture.  Similar to the VA loan, this type of loan is the ONLY loan out there where the buyer does not need to make a down payment (assuming they do not qualify for a VA loan).  Also, the credit requirements begin at scores of 620.   USDA loans allow buyers to obtain this type of loan and also avoid paying private mortgage insurance or annual premiums.  The main qualification for this loan is that the home must be purchased in an area where the USDA considers to be a “qualified rural area.” For more information on USDA Loans in Mount Laurel and if you qualify, click here.

 

 

 

 

 

 

4. Conventional Loans:

Conventional loans are the most commonly acquired loan in Mount Laurel.  These types of loans are you most traditional loan, where the potential buyer will pay 5-20% of a down payment in order to purchase the property.  For sellers, conventional loans are considered the strongest type of financing, when the buyer is in need of obtaining a mortgage.  To qualify for a conventional loan in Mount Laurel, a credit score of 680 is required.  These loans do lack the government guarantees, like the VA loans.  The typical buyer looking to get a conventional loan has money to put down and wants to be able to have a lower monthly payment, building equity faster than any of the previous mentioned mortgages.  For more information on Conventional Loans in Mount Laurel, and if you qualify, contact us.

 

About Jessica JessicaHoltzman

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