Securing a home loan can feel confusing and intimidating, especially with so many options, terms, and requirements to navigate. Don’t worry. We’re here to help you learn more and do more, financially! In this post, we’re breaking down some of the details and terms to help you navigate the process feeling more confident and equipped to make decisions!
Buying a Home
There are a number of mortgage loan types available to consumers. Here are a few common types you might encounter:
- FHA (Federal Housing Administration) Loan – Ideal for first-time buyers with lower credit scores or smaller down payments.
- Conventional Home Loan – A great fit for borrowers with strong credit and stable income.
- Fixed-Rate Mortgage – Predictable monthly payments with a consistent interest rate for the life of the loan.
- VA Loans – Available to qualified veterans and active military members with favorable terms and little to no down payment.
Adjustable-Rate Mortgages (ARMs)
ARMs offer lower initial rates that adjust over time. A 5/1 or 7/1 ARM (Adjustable-Rate Mortgage) typically offers a lower initial interest rate than a traditional fixed-rate mortgage, which can mean lower monthly payments during the first 5 or 7 years. These loans can be a smart choice if you plan to move or refinance before the adjustable period begins, giving you flexibility and upfront savings. Plus, with an ARM, if the rate fluctuates, it’s still capped – and often capped below the prime rate.
Data shows that most first-time buyers keep their first starter home for only two to five years. In fact, 26% of 22- to 30-year-olds anticipate living in their homes for four or five years after purchasing, and 7% expect to stay for only two to three years. This makes an ARM a great options to consider.
Building a Home
Dreaming of custom construction? Construction loans are perfect for financing a new build from the ground up or finishing a home that’s already under construction. We make the financing process straightforward, so you can focus on building your future.
Home Improvement Loans
Love your home but want to update it? A Home Improvement Loans can help you fund remodeling or repairs, using your home as collateral to secure lower rates. Whether you own your home outright or still have a mortgage, we can work with your contractor to fund improvements that increase comfort and value. You’ll need a contractor’s bid, plans, and specs for any additions before you can close on this type of loan.
Home Equity Loans
When you’ve built equity in your home, you can borrow against it for just about anything. A Home Equity Loan can help cover:
- Medical expenses
- College tuition
- Major renovations
- Dream vacations
- Credit card debt consolidation
You get a lump sum of cash and the flexibility to use it however you need.
Cash-Out Refinance
Need access to cash and want to refinance your mortgage at the same time? A cash-out refinance may be the solution. This option lets you convert your home equity into cash by taking out a new, larger loan. It’s a popular choice for major expenses or debt consolidation.
Land Loans
If you’ve found the perfect piece of land, don’t let it slip away. We offer land loans for unimproved properties and future builds. Land often appreciates over time, making this a smart investment for your financial future or retirement plans.
HOPE 100 Program
Think homeownership is out of reach? Think again. The HOPE 100 program helps remove common barriers, opening the door for more people to own a home. If you’ve been hesitant to apply, this could be your opportunity.
Home Loan Calculators
Get started on your path to home ownership with some basic Home Loan calculators, so you can calculate how much you can afford, how much your payments might be, and more.
Buying or building a home is one of life’s biggest milestones, and at Kelly Community, we’re here to help you every step of the way. Recognized as a “Best in Town” lender for six years running, we take pride in offering a variety of home loan options to meet your unique needs, whether you’re purchasing your first home, building your dream house, or tapping into your home’s equity.
From Loan to Home, we have you covered! Contact us to get started today!
SOURCE: TheZebra.com
NMLS #405460
