One of the first steps to buying a home is getting qualified for a loan. This is a very important step because once you are qualified for a loan you will know how much you are approved for, what type of loan you need, and how much you will need to bring in as a down payment.
Here are a few different types of loans:
An FHA Loan is a loan insured by a government agency called the Federal Housing Agency. Typically on this type of loan a buyer would need to bring in about 3% of the purchase price for a down payment. There are also still some programs out there today where you can get a loan for virtually nothing down. An FHA loan is very common today and is good to do if you do not have enough for a big down payment that other types of loans may require. One important thing to remember on an FHA loan is that there are limits on the amount of the loan.
VA Loans are for those that are qualified by military service or other entitlements. This type of loan is not extremely common, but may be a good option for you if you have served in the military.
Conventional Loans are also another popular type of loan. Typically you need a 5% down payment so many people opt to go with an FHA loan. This type of loan in not guaranteed or insured by the Federal Housing Agency, but typically these types of loans offer good interest rates.
This is just a brief overview of loans. There are so many types of loans such as an ARM, 15 year, or 30 year loan. If you have questions feel free to ask or I can direct you to a loan officer who would be well qualified to answer your questions.