If you are in the market for a new home, it can be a really exciting time. Before you start looking seriously though for a new house, you need to know how much of a loan you qualify for. As soon as you know the maximum amount of a loan you can get, you can narrow down your search and get more serious. When you are shopping around for a loan, it's good to know what kinds of options you have. Read on to learn some more.
No Credit Financing
If you want a home, but you don't have any credit, then you may think that you can't be a home buyer. However, there is no credit financing for those who either have no credit or who have lousy credit. The great thing about this type of financing is that it allows you to get a house based on other things such as your down payment amount and the income that you bring in every month. One thing to know though is that sometimes the homes with no credit loans may come with higher interest rates.
Another type of financing that you can consider is an FHA loan which is a loan through the Federal Housing Administration. A lot of homeowners like this type of loan because it allows you to only put a small percentage down on the home in order to qualify. Traditionally, people have to set about 10-20% or more down on a home in order to , but with an FHA loan, you can put down under 5% depending on the state that you live in.
Another option that you have is traditional financing. Traditional financing isn't for everyone because it has more rules and restrictions. For instance, you usually have to have a high credit score, low debt to income ratio, a sizeable down payment, and a stable income. One of the benefits of traditional financing is that you can typically get a low-interest rate.
These are only three popular financing options for people who are looking at buying a home. Once you have your loan figured out with your home lender, you should be able to get everything started and rolling as soon as possible. Just remember that you can always refinance your loan later on, to get a lower interest rate if you need to; that way you know that you aren't always stuck with the loan amount.