There are some fine mortgage brokers in Chicago, like mortgage lender Chicago. If you are looking to borrow and you live in Chicago, check out what you can do to make sure you get the best deal. If you are looking for low down payment options, then you may want to find out about different types of loans, and you can make sure you get the best deal for your money. Here is a synopsis of the possible types of loans you can get.
Some of your low down payment options include VA mortgage and FHA financing. VA offers zero-down financing, and you can get a loan for 100% of your home’s cost. You can also look into USDA Rural Housing Service and make sure you live in a rural development area. But, if you are living in a city, then you are able to do different things to get the best down payment option.
You’ll want to go one of two ways: you can either get a conventional loan-to-value option (3 percent down) or an FHA loan, where you borrow 96.5 percent and pay 3.5 percent down. It’s unsure, probably, which option is best, but you can look at both of them and make sure you get the best deal for your money this way.
If you’re curious about the FHA, remember that the FHA is Federal Housing Authority. It is an insurer, and it provides insurance in the form of mortgages. The loans are all made by FHA-approved lenders.
If you want more cash for closing, you’ll want to put between 3 and 3.5 percent down. This is a small difference. For the FHA, you can contribute up to 6 percent, and the conventional only allows you 3 percent of a contribution. You definitely don’t want to assume that the lower interest rates are equated with savings, and you will want to include the MI premium, which makes the cost higher, so make sure you have enough money to pay for all of this.
For mortgage insurance, know that the FHA charges it up front. They also charge it monthly. And if you’re paying less than 10 percent up front, you’ll have to pay mortgage insurance for the life of your loan. If you put more than 10 percent down, you are able to cancel the mortgage insurance in 11 years.
With a regular loan, you are able to cancel the mortgage insurance after the house goes up in value, and you’re sure to want to do this. So, make sure that you choose the best value for your home, and think about what you are able to purchase and put down for a down payment for your home. Then, you will be ready.