Whether you are looking to become a new homeowner for the first time or are moving to the Salt Lake area, it would be helpful to understand what a mortgage is. It will also be beneficial to know what kind of mortgages are available in Salt Lake City and which one is right for you. Simply put, a mortgage is a loan used to buy a home. You can be paid off these loans at either a fixed rate to offer consistency in payment. It is also common to pay them off at an adjustable rate. Here are some of the various types of loans offered by mortgage companies located in Salt Lake City.
Conforming Conventional Loans conforms to requirements set by government-sponsored enterprises Fannie Mae and Freddie Mac. These can be used for your primary home or vacation or investment property. These loans are not insured by the federal government.
FHA is a type of loan that offers lower down payments and has lighter credit requirements. It is backed up by the Federal Housing Administration, which provides the needed stability.
Veteran Affair (VA) loan is a loan backed by the Department of Veterans to establish rules to help those who qualify get their mortgage.
USDA loans allow you to finance a home with no down payment required. This is provided that you meet the established income requirements.
Jumbo mortgages provide a loan above the government limits for homes in a higher-cost area or neighborhood. This is for borrowers who need to take out more money than the federal limit for a standard home loan.
There might be other options for state-specific housing programs to look into and ask a loan officer about including adjustable-rate and fixed-rate mortgages.
Buying a home can be very intimidating for everyone, whether this is your first time as a homeowner or if you bought several before. With this, it is important to do your research, talk to a loan officer, and learn more about these different types of loans. Companies like Graystone Mortgage, LLC are available to educate and help with your questions on loans. If you live in or are moving to the Salt Lake area and are in the market to buy a home, you will want to look into these options to learn which is best for you. Apply for a loan, go house hunting, and get your dream home.
Graystone offers mortgage loans in Salt Lake City and several other cities in Utah. To learn more about the types of loans they offer, visit their site.