Mortgages are one of the most common things that people consider when looking to buy a home. You pick one and then you end up paying for it for a couple of years
But, like all things in life, not all mortgages are made equal. When looking for a house in Oklahoma, finding the right house is only a small part of your home-acquiring journey. There are different kinds of mortgages in the market. Choosing one is dependent on your situation.
When you need to dedicate yourself to paying a loan for a couple of years, then choosing the right one for you is the first most crucial part. You need to choose the one that meets your needs in order to avoid having problems later on. To know what your options are, let us first know what the different types of mortgages in the market.
Different Types of Mortgages
Mortgage guidelines can differ a lot. Some of these home loans require you to pay a down payment, some of them have no down payment requirement at all! A few of these loans can easily be applied to by a quick online search of a USDA Rural Housing Loan near me. The different main types of mortgages are:
Conventional Mortgages – The federal government does not back up conventional loans. In conventional loans, as long as you have a good credit score, and is able to make a 3% down payment, you can qualify for it.
Conforming Mortgage Loans – These loans are bound by the federal government using maximum loan limits. These limits can have different variations depending on geography.
Nonconforming Mortgage Loans – Fannie Mae and Freddie Mac cannot buy these loans. This may be due to loan amount or underwriting guidelines. Loans called Jumbo loans, which were given their name because they exceed the conforming loan limits, are included in this category of loans.
Government-Insured Federal Housing Administration (FHA) Loans – These are loans open for low-income to moderate-income home buyers. Borrowers that normally can’t qualify for conventional loans can opt to apply for an FHA loan. These loans have more relaxed requirements.
Government-Insured Veterans Affairs (VA) Loans – These loans are only available to people that have served in the military. This type of loan does not require a down payment.
Government-Insured U.S. Department of Agriculture (USDA) Loans – Like VA loans, these loans do not require a down payment. What USDA loan has different though is that a USDA Home Loans Oklahoma can only buy houses that are located in USDA-approved rural areas.
USDA Housing Loan in Oklahoma
Oklahoma is primarily rural. Only a small percentage of it is considered urban, which makes it a very good place to apply for USDA Home Loans Oklahoma. So, if you’re thinking about the best loan option to choose when planning to move to the state, USDA loans is the undisputed choice. Apply to lenders now by typing “USDA Rural Housing loan near me” in your search bar.