3 Most Common Loan Types
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1.
Conventional Loans
Conventional mortgages are best suited for borrowers with 5% or more in down payment and good credit. The guidelines are more restrictive than other loan types, but that generally correlates to better interest rates.
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2.
FHA Loans
These mortgages allow for a 3.5% down payment and the guidelines are generally the least restrictive. FHA loans also continue to be the most common loan type paired with down payment assistance programs.
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3.
VA Loans
VA home loans provide the best financing available for eligible veterans. Depending on the veteran’s eligibility there is no required down payment and there is no monthly mortgage insurance.