When you are looking to buy a home, chances are high you will need a home loan of some type in order to successfully complete the transaction, being that most people cannot pay for a home upfront with cash. It is important to know the different types of financing available to you in order to make this important purchase. Learn the different types of home loans available to you at Century Next Bank in Monroe, Louisiana and elsewhere below.
Conventional Loans
This type of home loan in Monroe, Louisiana is the most common type of financing, offered by most lenders. These loans are not backed by the government and will often require the applicant to pay higher down payments and have better credit scores in order to be approved for them.
FHA Loans
This type of loan is insured by the Federal Housing Administration (FHA) and are open to more people, being that they require only 3.5% to 10% down payments (as compared to the typical 20% down payment of conventional loans) and lower credit scores. The lender who offers this type of loan is backed by the FHA. If the applicant fails to meet the terms of the loan over the period of the loan, the FHA will compensate the lender.
VA Loans
These loans are guaranteed by the Department of Veterans Affairs and are available to active and former military members of good standing and their immediate families. They do not require a down payment to obtain ownership.
USDA Loans
These loans are supported by the U.S. Department of Agriculture and are offered to those looking to buy a home on rural properties. They also do not require a down payment to obtain ownership.
Century Next Bank is a Member FDIC and Equal Housing Lender.
