Which loan is right for your home purchase? The ultimate quick reference guide to FHA, conventional and VA loans. Part 4 summary

This is a summary of three previous articles with links included.

Conventional- Down payment required 3% (Click here for full article)?

FHA- Down payment required 3.5% (Click here for full article)?

VA- Down Payment required 0% (Click here for full article)?

Things to keep in mind?

While these 3 loan types offer a lot of flexibility in offering a low or no down payment that doesn't mean you should just jump into a home ASAP. There are several disadvantages to making low down payment offers on a home.?

? Sellers may not want to accept an offer with a low down payment and may either ask for you to put more down or charge a higher price to make up for the extra risk of the loan not closing.?

? Putting less down means a higher loan amount so you will pay much more interest over the lifetime of your loan?

? In having a bigger loan to pay off you will have to show more income than if you were to put a larger percent down?

? Higher loan to value loans will increase your rate and mortgage insurance cost

You always want to lead with strength when making an offer so make sure you get a prequalification letter from a lender a strong reputation. There are still people and, in some cases, corporations making cash offers so you need to do everything you can to be competitive. Click here to visit my website for product offerings, tools reviews, market information and a streamlined approach to getting preapproved.

Benjamin Kell NMLS #2126313