With so many loan options available to prospective homeowners these days, choosing the right mortgage can almost feel overwhelming. New loan programs are always being developed to meet the changing needs of homebuyers. At JZ Mortgage Services, Inc. we work closely with our clients to help them easily choose the loan that works best for their unique situation. With detailed knowledge of the Florida real estate market, we are able to provide fast approvals along with competitive rates and terms on numerous home purchase loans throughout Bradenton, St. Petersburg, Sarasota, and Tampa.
Purchase loans from JZ Mortgage Services, Inc.
Conventional Loans – Any mortgage not guaranteed or backed by the federal government is considered a conventional loan. Since the government does not insure these loans, they are often considered to be a bit riskier. This can sometimes make them a bit more difficult to qualify for and higher rates may be charged. Loans insured by the government are typically capped at a certain amount. Those in need of higher loan amounts can find conventional loans to be very advantageous.
FHA Loans – An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). By insuring home loans, the FHA protects lenders from borrower default. This allows the loans to be offered with more relaxed credit and income requirements than comparable loans. Given the ease of qualification, FHA loans tend to be rather popular among first-time home buyers.
VA Loans – VA loans are mortgages guaranteed by The U.S. Department of Veterans Affairs. While similar in design to the FHA loan, these loans are available exclusively to veterans, military, and their families. With a VA loan, borrowers can finance 100% of the purchase price of a home as well as VA funding fees.
Jumbo Loans – Mortgages that meet Fannie Mae and Freddie Mac requirements are known as conforming loans. One restriction is that loans cannot exceed $417,000 (in most cases). Jumbo loans are non-conforming loans that are greater than this amount. Jumbo loans are commonly used for second homes, vacation properties, and investment properties.
Purchase loans can come with a fixed rate, adjustable rate, or combination of the two known as a hybrid. Factors such as how long you plan to stay in the home or whether you plan to refinance down the road will affect the type of rate you choose.
Fixed-Rate Mortgage – Fixed-rate mortgages are typically available as 15 year, 20 year, and 30 year loans. As the name suggests, a fixed-rate mortgage will maintain the same interest rate for the life of the loan. Borrowers often have an added level of comfort with a fixed-rate mortgage knowing that their monthly payment will never change regardless of changes in the market.
Adjustable-Rate Mortgage (ARMs) – Adjustable-rate mortgages have an interest rate that will occasionally fluctuate based on the market. ARMs that start with a fixed-rate period then move to an adjustable rate are called Hybrid ARMs. For example, a 7/1 Hybrid ARM has a 7-year fixed period followed by yearly adjustments. ARMs typically start with a lower rate than similar fixed-rate loans meaning you pay less early on. For those looking to refinance soon after purchasing their home, ARMs may be a good choice.