With the ever growing real estate industry in the US, there comes the need for affordable mortgages that can only be provided by registered lenders, like banks, mortgage lending companies and private financial institutions. So, if you’re looking forward to buying a property, home, land or real estate; always look for a lender that is federally approved, certified and registered, apart from having excellent customer reviews on local business listing sites and on Google.
As days pass by, home loans in the US become increasingly dearer. So, states like Colorado and Arizona are not left untouched by this appreciating trend. Therefore, you need to zero-in upon a home loan service provider in Colorado, or for that matter in any other state, who offers mortgages at the lowest monthly interest rates. It can either be fixed or dynamic rates, depending upon prevailing market conditions. If you’re residing in states like Arizona, Wyoming and Colorado, you can definitely contact a lending company by the name of “Affordable Interest Mortgage” that offers secured home loans through its vast network of certified lenders.
Knowing Different Types of Home Loans
Well, if you’re residing in the US and looking for a credible mortgage to buy a property, there are quite a few types of home loans on offer. It can be a:
- Conventional Loan
- FHA Loan
- VA Loan
- Jumbo Loan
- Fixed-Rate Mortgage
- Adjustable Rate Mortgage, and
- USDA Loans
So, anybody residing in any of the above mentioned US states or in any other state can now apply and secure a credible mortgage through a verified lender. In case you’re looking for easy home loans Colorado or Arizona on fixed interest rates, it is always suggested to contact only a certified financial institution or lender that offers all of these mortgages. A home buyer looking to purchase a single family home, condominium, townhome or a vacation home can benefit through such home loans CO & AZ available at affordable monthly interest rates from A+ rated lenders, like the one mentioned above.
Requirements to Get a Secure Home Loan or Mortgage
In order to get the ‘best rate’ mortgage, you need to have a ‘healthy’ credit score. But, there are certain verified lenders in the US that offer home loans even with a poor credit score. If you’re eager in obtaining an easy mortgage loan in Colorado, or in any other US state, you need to go through these factors influencing the type of loans you can qualify for.
- Estimated Down Payment – The overall size and amount of your down payment can directly influence the rate of mortgage, a lender or bank would provide.
- Monthly Mortgage/Loan Payment – All financial institutions, banks and lenders will verify your assets and income, in order to finalize a mortgage loan amount that you would be in a position to repay. The best way banks/lenders find out the exact or approximate budget for your monthly mortgage payment, is by considering the principal amount, taxes & interests, insurance for mortgage, other utilities and homeowner’s fees.
- Overall Credit Score – Your overall credit score or financial standing would determine the monthly interest rate on your mortgage. Here, you can consult with an expert that can help assess your financial position.
Categorization of US Home Loans
Now, these above-mentioned mortgage types can be further categorized into two distinct verticals. One being Conforming Loans and the other one is Non-Conforming Loans. Under the first category, comes fixed-rate mortgages, adjustable rate mortgages & conventional mortgages, whereas in the other category, comes FHA loans, VA loans, USDA loans and Jumbo loans. In case of conforming loans, the said mortgage must fully meet the standard qualification or approval parameters set by the Federal Housing Finance Agency (FHFA) of the US government.
Why Individuals Prefer Conventional Home Loans & Mortgages?
It is because conventional mortgages come with easy-to-understand repayment terms & clauses, when compared to other home loans Colorado or Arizona. Secondly, it is the most common type of mortgage in the US. On the contrary, conventional loans do have stringent regulations on your credit score and debt-to-income (DTI) ratio. It is FYI that any down payment which is below 20% means that you have to pay for PMI. Above all, conventional mortgage loans have lower mortgage insurance rates, when compared to FHA, Jumbo or VA loans. Homebuyers who want to take all the benefits of lower interest rates, usually opt for conventional mortgages. Else, there are USDA and VA loans for individuals who can provide at least 3% down payment.
FHA Loans – This type of home loan in the US is insured by the Federal Housing Administration. With this particular type of mortgage, you can buy a property with a credit score as low as 580 and with a down payment of 3.5%. But, if you have a credit score of 500, you need to make a 10% down payment.
VA Loans – This loan type is insured by the Department of Veteran Affairs. With a VA loan, you can purchase a home with $0 down payment and at significantly lower interest rates, when compared to other mortgages. The only basic criteria here is that you need to meet the service requirements in the US Defense & Armed Forces.
USDA Loans – Here, it is insured by the United States Department of Agriculture. The mortgage insurance requirement is considerably lower, when matched with FHA loans. Moreover, you can buy a property with NO down payment. But, you must meet the income requirements, in order to qualify for a USDA loan.
So, if you’re serious about buying a single family home, condo, villa or a townhome in Colorado, Arizona or Wyoming, always contact one of the certified lenders like “AIM” that can not only offer affordable mortgages, but also connect you with various other A+ and alternative lenders in these three US states. In this way, you can get closer to your dream of owning a beautiful property, by availing a credible home loan or secured mortgage that comes at adjustable or fixed interest rates and on flexible repayment terms. In fact, this is how all home buyers achieve their monetary goal.