Purchasing a home is a fun and exciting time, but it can also leave you feeling overwhelmed. Understanding the mortgages available to you can help! We will provide some basic information about the types of mortgages available.
A conventional loan is not guaranteed or insured by the federal government.
Private Mortgage Insurance (PMI) is an insurance that protects the investor when you do not have 20% to pay down on your mortgage loan. This premium is added into your monthly mortgage payment along with your principal, interest, taxes, and insurance (PITI). This is not credit life insurance, which would pay off your mortgage in case of your death.
The Federal Housing Administration (FHA) mortgage program is managed by the Department of Housing and Urban Development (HUD).
Mortgage Insurance Premium (MIP) for an FHA insured loan is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of the down payment.
The U.S. Department of Veterans Affairs (VA) offers a loan program to military service members and their families.
USDA / RD loans
The United States Department of Agriculture (USDA) offers a loan program that helps low- to moderate-income borrowers buy homes in rural areas.
On government loan programs such as FHA, VA, and USDA, the property being purchased should not be one that requires numerous repairs or is considered a "fixer upper."
**All loan applications are subject to credit underwriting approval.**
This is a brief overview of the different types of mortgage loans available. We encourage you to ask questions and research each option further. Our experienced mortgage specialists are here to guide and assist you in your Home purchase or refinance. For more information, please check out our Mortgage website at https://firstcnb.mymortgage-online.com/.
Future Blogs: Homeowners Insurance | Advantages of Tennessee Trusts!
Follow @FirstCNB on Twitter, Facebook, and Instagram for Smart Women updates. E-mail us at SmartWomen@firstcnb.com with any questions or topic suggestions.