CONS OF FIXED-RATE MORTGAGES: • You’ll pay a higher rate than the introductory rate you could get on an adjustable-rate mortgage. • You may end up paying more in interest over time if the rates are high. VA LOANS These loans are specific to providing government insured or guaranteed mortgage programs to veterans, service members and eligible surviving spouses. These loans typically won’t have any down payment required, lower interest rates and is a lifetime benefit. FHA These loans are government-backed insured by the Federal Housing Administration. These usually requires a lower down payment and credit score minimums than other programs. They allow you to borrow up to a certain percentage of a home’s value depending on the credit score. These loans are popular among first time home buyers. CONS OF GOVERNMENT-BACKED LOANS: • You must meet specific criteria to qualify • Many types of government-backed loans have insurance premiums (also called funding fees) that are required upfront, which can result in higher borrowing costs PROS OF GOVERNMENT-BACKED LOANS • Those who have low cash savings might benefit from a government-backed loan • Those with lower credit could benefit from a government-backed loan As you can see, there are different mortgage loan products that can offer a customer different things. It is truly a wise step to ask questions of the lenders you are working with to see what type of loan is the best fit for you. Having a better grip of the different loan types and what they do and don’t offer will help you in the long run to know what type of mortgage transaction you are getting into. Focus On: Program Benefits: Services available to all Polk residents regardless of income Free confidential financial counseling sessions with a certified professional Assistance in navigating complex financial challenges In person and phone appointments available in English and Spanish Savings Plan for the future and prepare for unforeseen expenses Banking Gain access to safe and affordable banking services Debt Credit Pay down debt and develop budgeting tools Schedule an Appointment Today! Call (515) 697-7700 or online at EmpowerMoney.org Establish and improve credit with professional guidance
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