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Types of Home Loans: Find the Best Option for You

October 1, 2022

Types of Home Loans: Find the Best Option for You

When you set out to purchase your first home, there are a lot of unknown yet important related factors. Securing the right type of home loan for you, your growing family, or your extended family means finding the right home lender to work. A lender who will work to find you a loan option that works for your current financial situation and helps you down the road if your financial situation changes. 

Read on to learn about the different loan options available through The Mortgage Firm North Central Florida to learn which loan may work best to achieve your unique home-buying goals.

Types of Home Buying Loans available in Ocala and Gainesville  

Conventional Loans

Conventional home loans are often the least complicated for mortgage underwriting and potential appraisal issues and the most flexible loan option for buyers. They offer low down payment options and allow for 30 and 15 year fixed loans.

Who These Benefit

Conventional home loans benefit buyers with a good credit score who are interested in financing a primary home, secondary home, or investment property. These loan types require some down payment and work well for buyers who have a balanced income-to-debt ratio. Conventional loans offer fixed interest rates, 10, 15, 20, and 30-year terms, and loan amounts up to $647,200.00. 

FHA Loans

FHA loans are insured by the Federal Housing Administration, offer more flexibility, and can be used for primary homes. 

Who These Benefit

FHA loans benefit first-time homebuyers (though this is not a requirement) and people who have lower credit and higher debt ratios. 

Buyers who qualify for an FHA loan can expect lower monthly interest rates and FHA loans also require a lower down payment — typically 3.5% — and lower closing costs as well as mortgage insurance fees.

VA Loans

VA Loans, offered by the Department of Veterans Affairs, offer financing options for a primary residence to qualified veterans. 

Who These Benefit

VA Loans benefit qualifying veterans, active-duty military, members of the reserves, and those who have served the required amount of service time. VA loans require 0% down and offer 100% financing.

USDA Home Loans

USDA Home Loans, provided by the US Department of Agriculture, offer low down payments and low mortgage insurance premiums to qualified buyers. USDA loans also offer 100% financing and 4 term options. 

Who These Benefit

USDA home loans benefit people looking to purchase only a primary residence and are open to purchasing a home in a rural development area. 

Doctor Loans

Doctor loans, also known as physician loans, are mortgages designed specifically for medical professionals.

Who These Benefit

Doctor loans benefit medical professionals with an unbalanced and typically very high current debt-to-income ratio because of their medical school loans. Serving Ocala and Gainesville, The Mortgage Firm NCF requires only 0-10% down for qualified borrowers, and our doctor loans are available to medical professionals in the following fields.

  • Medical residents
  • Medical doctors
  • Doctors of Dental Medicine
  • Doctors of Opthalmology
  • Doctors of Osteopathy
  • Chiropractors
  • Medical Fellows
  • Doctors of Dental Surgery
  • Doctors of Optometry
  • Doctors of Podiatric Medicine
  • Pharmacists
  • Doctors of Veterinary Medicine

Doctor loans require no monthly mortgage insurance and apply to home refinances, which is a huge benefit for medical professionals! There are often no fixed interest rates, and buyers are able to pay off their loans in a fraction of the time due to their high salaries. 

Construction Loans

Construction loans, also known as self-build loans, are short-term loans that provide financing during the construction phase, typically over one year.

Who These Benefit

Construction loans benefit people who need financing to build their new home and are issued only during the construction phase, and then new mortgage loans are secured once the build is complete. These loans are great for borrowers who need assistance financing the build so everything can be handled up-front. 

Construction loans often have a higher interest rate but for a much shorter period of time, and The Mortgage Firm only requires 5% down for these loan types. Construction loans are typically paid out directly to the construction company, which helps keep your project on schedule and top priority as it has already been fully funded.

Finding a Mortgage Lender to Secure your Loan

At TMFNCF, we offer a variety of versatile loan options that speak to each client and their unique financial situation. Above all, our company prioritizes honesty and patience because no two home purchases are the same. Our patience, knowledge, and community of support help us deliver seamless transactions, with your goals always top of mind.

Further, unlike banks, we set ourselves apart by providing accessible service to our hardworking clients in Gainesville and Ocala, even outside of normal business hours. We can deliver such outstanding results because of our transparent business practices, which always aim to serve the client in the most effective and efficient ways possible.

Who Local Lenders Benefit

Lenders benefit buyers looking for a personal touch on a sometimes overly standardized process. Our team understands that the only way to achieve the outcome clients hope for is by knowing them personally, meeting them where they are, and explaining the process and options in ways you just can’t get from large corporate banks. For more detailed information on the pros of direct lenders, check out our blog here!

In addition to offering mortgage loans, our firm proudly specializes in home refinancing, which allows existing homeowners to:

  • Lower their monthly mortgage payments.
  • Reduce the terms of their mortgage loan.
  • Get cash equity out of their home. 

Refinancing empowers homeowners to invest in household renovations, save money each month to put towards things like retirement, and also explore other investment opportunities.

Contact The Mortgage Firm North Central Florida today to discuss which loan option you’d like to secure for your next home, try out our Mortgage Calculator to calculate monthly mortgage payments, or fill out our online form to begin the mortgage application process today!