Your Lake of the Ozarks Mortgage Lender: Choosing the Right Mortgage Program for your Homebuying Needs

Friday, April 30, 2021

Choosing the Right Mortgage Program for your Homebuying Needs

Buying a home at Lake of the Ozarks is a time to celebrate, but it's also important to not get swept up in the buying process and forget some of the more intricate details - such as financing. Your mortgage at Lake of the Ozarks should conform to the type of home you're wanting to buy, as well as your future plans for the home. One of the main ways to ensure that you're getting the best rates, terms, and results from your mortgage is choosing the correct loan product. In this week's blog, I am going to inform you of the various loan products that Team Lasson can offer you to suit your homebuying needs.

Conventional

A conventional loan is one of the most common in the industry. This loan is funded by private financial lenders and is then sold (or kept with servicing retained - the bank provides your services for managing the loan. This varies bank to bank) to government enterprises such as Fannie Mae and Freddie Mac. Conventional loans typically require higher down payment requirements depending on whether it's your first or second home. As well as having more stringent credit requirements, which are directly tied to the interest rate you will receive. For established buyers, conventional loans can provide great, long or short-term interest rates.

USDA

United States Department of Agriculture loans (USDA) are an advantageous way to acquire a home if you have low to moderate income and are lacking on the down payment side of things. These are typically low-interest, no down payment mortgages used to help finance homes located within eligible rural areas. There are special regulations a home and borrowers must meet to be eligible for this product, so be sure to speak with your lender about your situation and plans for buying a home.

FHA

Federal Housing Administration loans (FHA) are backed by said administration that was created to help home buyers qualify for a mortgage. They are a great option for first time homebuyers as they have more lenient credit requirements and allow for less of a down payment required by providing their own form of private mortgage insurance.

VA

Veterans Affairs loans (VA) are issued by private lenders and guaranteed by the United States Department of Veterans Affairs. VA loans are a no-down payment mortgage option with low interest rates for active or retired veterans to purchase a primary residence or refinance an existing mortgage. There are different regulations and standards the home must meet to be processed and approved through the VA appraisal and underwriting process compared to conventional loans. So, be sure that the type of home you're looking to buy fits within these standards by speaking to your lender upfront about your plans.

I hope that you have found this information helpful and that it helps you in obtaining a mortgage at Lake of the Ozarks. As always, I am here to help you make the best financial decisions when buying a home at Lake of the Ozarks and would be happy to discuss any of these options and which may suit your needs as a homeowner best. So, if you're looking to buy at the Lake, please feel free to give me a call or apply online to begin your journey to becoming a homeowner at Lake of the Ozarks.

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