Choosing between mortgage loan types is one of the first big decisions Arizona home buyers make.
Do you want to buy a high priced home but worried you have to put 20% down? When your loan amount is over $548,250, it’s called a Jumbo loan and you have to put 20% down. But what if you don’t have that much money for a down payment?
You can get both a 1st and 2nd mortgage. Then you only need to put 10% down. Example. 20% of $548,250 is $151,750 down payment. 10% is $70,000. Bonus, your 2nd mortgage is at an extremely low interest rate and you can pay it off as soon as you’d like without a pre-payment penalty!
You don’t have to sweat about your huge downpayment. Contact me to hear more about a 1st and 2nd mortgage!
Common Mortgage Loan Types
Conventional loans are the most common and can require as little as 3% down for qualified buyers, with mortgage insurance until you reach 20% equity. FHA loans allow 3.5% down with more flexible credit guidelines. VA loans offer eligible veterans and service members 0% down and no monthly mortgage insurance. USDA loans can offer 0% down in eligible areas, and jumbo loans cover amounts above the conforming loan limit.
The best choice depends on your credit, savings, income and how long you plan to own the home. Talk with a trusted lender and compare loan estimates side by side.
Once you know your loan, a strong offer matters. See my buyer resources to get pre-qualified and start your search.
