Applying for a Home Loan? Consider These Options

posted 10/2/2017 in Mortgage

If you’re thinking about getting a home loan, it is important to be educated about your options. You may be eligible to receive a VA, FHA or USDA home loan.

Is one of these options right for you?

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The borrower can access a lower interest rate than is ordinarily available with other loans.

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

The USDA (United States Department of Agriculture) Rural Development's Single Family Housing Guaranteed Loan Program helps provide mortgage loans for home buyers with low to moderate income in eligible rural areas.

For home buyers that qualify, the USDA Loans offer the flexibility of 100% financing on fixed-rate home loans, low-interest rates, low fees and minimal mortgage insurance compared to other mortgage products.

If you are interested in learning more about what type of home loan might be right for you, let one of our experts help.

At Lincoln Savings Bank, our loan officers want you to be informed so you can make the best financial decisions about your home purchase. Contact us today to speak with one of our mortgage lenders.

Lincoln Savings Bank, Member FDIC, Equal Housing Lender
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