Did you know there are many varieties of home loans, and that not every mortgage is the same? Rainbow Mortgage Inc. is a local mortgage broker with has access to more loan programs than the big banks, ensuring you get the best mortgage loan for your situation. Even though there are many different types of loans, the majority will fall into these categories:
The standard home mortgage loan is a conventional loan. Many people believe you need a 20% down payment when applying for a conventional loan however, this is not true. Rainbow Mortgage Inc. is proud to be one of the few mortgage companies in Minnesota to offer a 1% down payment program.
FHA Loans are backed by the US Federal Housing Administration and carry mortgage insurance throughout the life of the loan. FHA Loans have a minimum down payment requirement of 3.5% which can be from a savings account or gifted monies. Not every property qualifies for an FHA loan, but FHA home loans are available to those who have lower credit scores.
Active duty military members and veterans of all military branches are eligible for a VA Home Loan. Two of the best perks of a VA Loan are the lower rates and that there is no down payment required! In addition, a VA Loan provides the option of a cash-out-refinance for up to 100% of the home’s value for any reason.
In most counties, a home mortgage larger than $453,100 is considered jumbo! These loans typically require higher rates than conventional and FHA loans. However, Rainbow Mortgage Inc. is now able to offer a high balance loan option (loan amount from $453,100-$679,650) while still keeping the loan “conventional”. This option allows for lower rates, easier guidelines, and fewer documents than a jumbo loan.
For those looking for a home in a rural area, the home may qualify for a USDA Home Loan. This government loan program is designed to improve the economy and quality of life in rural areas. Although there are income limitations with this program, the loans have lower rates and don’t require a down payment.
Specialty Home Loans:
As a Twin Cities mortgage broker, our team has access to more lenders with more loan products than the big or local banks do. If you have a unique situation (self-employed, unemployed, need down payment assistance, or have had credit issues), we can help find the best home loan program for your scenario. At Rainbow Mortgage Inc. we never say “no”, we say “not now” as we’ll work with you create a plan to help you achieve your housing goals.
Ready to Learn More?
Contact the experienced mortgage brokers at Rainbow Mortgage Inc. to learn more about any of these programs and get started today!