Introduction
Buying a home is a big event in the life of any person. Different from other loans, in house purchasing loans there are many formalities involved. Home buyer credit is different from house construction loan. There are different kinds of home buyer loans available in market. Here we will discuss few common kinds of home buyer credit.
Step 1
First Time Home Buyer Loan:
Mostly people go for first time home buyer credit option because it has either no or very low down payment and normally interest rates are very low as compare to other house purchase loans. Besides that processing charges are also very low in this kind of credit. People who do not own any house are potential candidates for this kind of home buyer credit. Recently in some places first time home buyer loan also available for those who do not own home in last three years. There are some restrictions in terms of monthly income to qualify for this loan which you need to see before applying for the loan.
Step 2
Conventional Home Buyer Loans:
Conventional home buyer credit is one of the oldest house purchase loans available in the market. This loan is available in both fixed markup rate and adjustable rate. The amount of loan is also varies in different type of conventional home buyer loans such as for large amounts there is jumbo, super jumbo and mega home buying loans are available.
Step 3
Fast and Easy Home Buyer Loans:
As the name says it all, this type of loan processed very quickly without much verification. This is a high quality credit program which opens window of opportunities for the borrower.
Step 4
Expended Criteria Home Buying Loan:
Some people failed to find any of home buyer credit just because they do not fall in any of criteria. For those kinds of people this type of credit is one of the few options available. In this type of loan the criteria of the borrower reduced. These criteria includes down payment amounts, and guarantees.
Step 5
Low Income Home Buying:
Some low income people cannot afford to pay heavy installments. For them this program is launched to assist such low or moderate income people in getting their own house.
Rural Grant Home Buying Loan:
This home buyer credit programs is designed specifically for rural area residents. The positive feature of this program are, there is no down payment or cash reserved are required only a guarantee fee needed.
Home Equity Mortgage Loan:
This is one of the most common and popular type of home buying credit loan. The features of this type of loan are fewer formalities, low interest rates and three deferent levels of risk to evaluate the amount of loan. Getting own home is a dream of every common man who do not have own home yet. We mentioned few of the common home buying loans. There are many other type of house purchase loans are available in the market. One need to look which type of loan suits his situation before going to apply.
