The Different Types of Home Mortgage Loans and Which is Right for You

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:

Conventional Loans:

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:

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.

VA Loans:

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.

Jumbo Loans:

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.

USDA Loans:

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!

Mortgage Loan

Save up to $525 with a FREE Home Appraisal!

If you’re buying a home, you may have noticed that it can be difficult to save money. As a Twin Cities mortgage broker, Rainbow Mortgage Inc. is ready to help you save money by shopping the rates and loan programs of many lenders. We’re one of the only Twin Cities mortgage companies that currently offer a FREE appraisal on homes in Hennepin and Ramsey Counties!

The $525 savings is offered on any Hennepin or Ramsey County home with a conventional loan and a minimum of a 3% down payment. Unlike other banks that may offer free appraisals, this program has no income limit for the homebuyers! Whether you’re a first-time home buyer or this is your 3rd home, this program will save you over $500 on top of Rainbow Mortgage Inc.’s exceptional loan pricing. Throughout the entire process, you’ll receive the highest level of customer service and dedication from our expert mortgage brokers.

Interested in saving money, but don’t have enough for a 3% down payment? Ask about our 1% down payment program! We’re proud to offer many other home mortgage programs that can save you money upfront and throughout the life of your loan.

Ready to Get Started?

Contact our team today at 952-405-2090 to learn more about these home loan programs and how we can help you save money!