Conventional Loan

Which Type of Mortgage is Right for You?

So you’re thinking of buying a home? Congratulations! Most people associate the home buying process with calling a realtor, finding the perfect home, negotiating the deal, having inspections performed, and then setting a close date. Just as important, however, is deciding which mortgage is right for you. A little proactive planning can help you accomplish your financial goals when buying a home, and it’s important to understand what your options are. The professionals at GVC Mortgage can help you weed through all the choices to answer this important question. Here are three options for you to consider.

1. Conventional

The Pros: This loan type offers freedom and flexibility, and does not require costly private mortgage insurance.

The Cons: In order to qualify for this loan type, you need a good credit score and typically need to pay a full 20% down payment for your home.

2. FHA / HUD 100

The Pros: You can secure a loan with minimal-to-no down payment.

The Cons: Since insurance is provided for your home, you are typically required to pay expensive PMI (private mortgage insurance). Further, FHA programs will often have rules and regulations that conventional loans do not.

3. Doctor / VA

The Pros: Access to exclusive financial products, including little-to-no down payment without having to pay private mortgage insurance. The Veterans Administration does not lend money, but will guarantee a portion of the loan in order to obtain more favorable terms.

The Cons: These specialty loans are only available for specific individuals. More specifically, Doctor Loans are only available to physicians, dentists, and some other eligible medical professionals. VA loans are only eligible to service members, veterans, and eligible surviving spouses.

While there are many loans to choose from, the experts at GVC Mortgage can help answer all of your questions and can help you find the loan that is right for you. Contact us at (317) 564-4906 today to set up a private mortgage consultation or apply online anytime.

Carla Jackson

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Carla Jackson

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