If you’re in the market to buy a new home in Las Vegas, you may be wondering what types of mortgage loans are available. After all, the financing side of things is usually what homebuyers dread the most. Looking at homes and picking one out is exciting, but paperwork, long wait times and bank approvals are not.
To help you prepare for your new mortgage, here are four of the most common loan options available in Las Vegas.
1. Conventional Loans
Conventional mortgages are home loans that are not insured by the federal government. There are two types of conventional mortgages. Conforming loans are loans that fall within the maximum limits set by Freddie Mac or Fannie Mae. Non-conforming loans (i.e., jumbo loans) fall outside these guidelines. Most conventional loans expect you to put 20% down otherwise you have to pay private mortgage insurance.
2. Government-Insured Mortgages
The government agencies that back mortgage loans are the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA loans) and the U.S. Department of Veterans Affairs (VA loans). These loans make it possible for people to borrow money even when they don’t have a large down payment or good credit.
Compared to conventional loans, government-issued mortgages are generally more relaxed and a great option for first-time home buyers in Las Vegas.
3. Fixed-Rate Loans
Fixed-rate mortgages keep the same interest rate over the life of your loan. They typically come in 15-, 20- and 30-year terms. Fixed-rate loans are ideal because your monthly mortgage won’t change over the life of your loan. This allows you to budget more easily.
4. Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) have fluctuating interest rates that can go up or down with the market. This means that your monthly mortgage can change. Often, ARMs have a fixed interest rate for the first few years before the loan changes to a variable interest rate. While these loans have their benefits, they can also become unaffordable, resulting in a loan default.
If you’re thinking about buying a new home and taking advantage of these great interest rates, now is the time to do it! Contact We Buy Any Vegas House for your free cash offer. If you accept, we can close in as little as one week, and you’ll have money for a down payment. Call us today!