Home Mortgage Top 3 Mortgage loans which homebuyers should consider in 2019.

Top 3 Mortgage loans which homebuyers should consider in 2019.


In most cases, buying a home may be considered an exciting activity but when it comes to its financing, then it becomes an overwhelming activity. When you understand the lingo, then choosing the best plan for yourself won’t be a painful activity. Once you are done with your homework on ownership and thus nailed down your budget as well as down payment amount and creditworthiness, then it will be a better idea if you consider the best loan which suits all your needs.
Below is a listed premier type of mortgages which can best suit any homebuyer in 2019.
i. Conventional Mortgage
This type of loan is basically a home loan that has not been insured by the federal government. There are two basic conventional mortgages which are available. These are the conforming and non-conforming loans.
The conforming loan is simply loans which fall within the stipulated limits by Fannie Mae or Freddie Mac as well as the government agencies that back the U.S mortgages while the non-conforming loans are commonly referred to as Jumbo.
The following are some of the advantages of conventional loans
• They can generally be used primarily for home or investment property.
• They are considered as their borrowing costs are lower than other types of mortgages.
• Once you have gained your 20% equity, the borrower can ask the lender to cancel the PMI.
• The borrower can pay as low as 3% especially for the loans backed by Fannie Mae or Freddie Mac.
Disadvantages of Conventional Mortgages
• High Fico score is required as the minimum is 620.
• The debt to income ratio required is 45; 60 percent.
• Several documentation is required for verification purposes.

ii. Jumbo Mortgages
These types of mortgages are basically conventional loans without non-conforming limits thus meaning that their prices are exceeding the federal loan limits. Most of conforming loan limit in 2019 especially for the single family homes are averaged at $453,100 as per the Federal Housing Agency records.
The following are advantages of Jumbo Mortgages
• The suitability of borrower for borrowing loan for buying home in expensive areas.
• Highly competitive interest rates
Disadvantages of Jumbo mortgages
• The need for high down payments of at least % to 20%.
• The debt to income ration required should be greater than 45%.
• The availability of significant assets should be shown

iii. Government Insured Mortgages
Normally, the government is not considered as a mortgage lender but in most cases, it plays a crucial role in assisting Americans to become homeowners. There are three basic government agencies back loans which are:
Federal Housing Administration Loans: As they are being backed by the FHA, the provided loans basically assist the homeowners having large down payments saved up and not having pristine credit. The borrowers are considered to have a minimum FICO score of about 580 to access the FHA maximum financing of 3.5%.
The VA loans: These types of loans normally provides a flexible and low interest mortgage which are considered for the U.S militaries as well as their families. When seeking these types of loans, they do not require down payments or PMI and their closing costs are usually capped.
USDA loans: The USDA loans are basically considered as they help in moderating the low-income borrowers to buy and own homes especially those living in the rural areas. In order for the homebuyer to qualify, all the legibility criteria’s must be adhered to.
Advantages of government insured loans
• The is no need for higher down payments
• The requirements needed for one to qualify for a mortgage is more relaxed.
• They are generally open to the first time borrowers and repeat borrowers.
Disadvantages of government insured loans
• The considerations require one to have higher overall borrowing costs
• There are many documentations which are req


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