{"id":12865,"date":"2017-07-28T08:00:40","date_gmt":"2017-07-28T16:00:40","guid":{"rendered":"https:\/\/www.hayden-homes.com\/?p=12865"},"modified":"2023-06-13T12:15:47","modified_gmt":"2023-06-13T20:15:47","slug":"determine-home-loan-right","status":"publish","type":"post","link":"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/","title":{"rendered":"How to Determine Which Home Loan is Right for You"},"content":{"rendered":"<p><img loading=\"lazy\" class=\"size-medium wp-image-38741 alignright\" src=\"https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-300x200.jpg\" alt=\"How to Determine Which Home Loan is Right for You\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-300x200.jpg 300w, https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-1024x683.jpg 1024w, https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-768x512.jpg 768w, https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-1536x1024.jpg 1536w, https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-2048x1365.jpg 2048w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>If\u00c2\u00a0you are thinking about buying a new home, then you probably already know that there could be myriad financing options available to you. Knowing which financing option to choose, and which type of home loan is right for you, are both important things to know. Review the following information about the different types of home loans available to individuals just like you.<br \/>\n<strong>Fixed Rate Mortgage<\/strong><br \/>\nA fixed rate mortgage is one of the most common home loan structures. In a traditional fixed rate mortgage, a home loan is offered with a certain interest rate, and this interest rate is \u201cfixed&#8211;meaning that it does not change over the course of the loan&#8211;over time. Fixed rate mortgages can provide a sense of stability, as you always know what your monthly mortgage payment will be; <strong>it will not change.<br \/>\n<\/strong><br \/>\nNormal fluctuations in your <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-an-escrow-or-impound-account-en-140\/\" target=\"_blank\" rel=\"noopener noreferrer\">escrow account <\/a>may cause your monthly payment to change, but your actual mortgage will be fixed.<br \/>\n<strong>Adjustable Rate Mortgage<\/strong><br \/>\nAdjustable rate mortgages (ARMs) are quite the opposite. In an adjustable rate mortgage, the interest rate can change over time. While ARM mortgages have typically been deemed risky, experts say that ARMs may have their place. As suggested by an article in <a href=\"https:\/\/www.wsj.com\/articles\/why-home-buyers-should-consider-adjustable-rate-mortgages-1490582147\" target=\"_blank\" rel=\"noopener noreferrer\">The Washington Post<\/a> you may consider an ARM if:<\/p>\n<ul>\n<li>You plan to move before an interest rate spike will happen;<\/li>\n<li>You expect your income to rise; or<\/li>\n<li>You think you can invest your mortgage savings for a greater return elsewhere.<\/li>\n<\/ul>\n<p>However, if you are planning to buy a home that you\u2019ll live in for decades and you\u2019re not sure what your income will be, you may want to consider avoiding ARMs.<br \/>\n<strong>VA Loan<\/strong><br \/>\nA VA, or <a href=\"http:\/\/www.benefits.va.gov\/homeloans\/\" target=\"_blank\" rel=\"noopener noreferrer\">Veterans Administration<\/a> loan, is a type of loan that is available only to veterans. VA loans are issued by private lenders, just like standard loans, but the VA guarantees a portion of the loan. These loans can help qualifying individuals purchase a home without a down payment or private mortgage insurance, secure low interest rates, and more.<br \/>\n<strong>USDA Rural Housing Loan<\/strong><br \/>\nAnother option for financing is a USDA (US Department of Agriculture) rural housing loan. With this type of loan, you can buy a home with zero down payment and a very low interest rate if you meet eligibility requirements, including income requirements and you are buying in what is considered to be a \u201crural area. <a href=\"https:\/\/www.hayden-homes.com\/zero-down-home-loans-available-in-your-area\/\" target=\"_blank\" rel=\"noopener noreferrer\">Many Hayden Homes\u2019 neighborhoods <\/a>are being built in areas that meet this standard!<br \/>\n<strong>FHA Loans<\/strong><br \/>\nThe Federal Housing Administration (FHA) is the largest insurer of residential mortgages in the world, and if you get an FHA loan, this means that you are getting a loan that is considered a \u201cmortgage insurance backed mortgage loan. Essentially, when you have an FHA loan, you are paying for mortgage insurance, which protects your lender in the event that you default on the loan. Because of this protection, FHA loans are often offered at lower interest rates, and eligibility requirements may be less strict, too. Less than perfect credit and a lower down payment (minimum is 3.5 percent) are OK, and some of your closing costs may even be covered.<br \/>\n<strong>FHA 203k Rehab Loan<\/strong><br \/>\nRemember, an FHA loan is a type of loan that carries mortgage insurance and is from an FHA-approved lender. An FHA 203k rehab loan is different than a traditional FHA mortgage loan in that the former allows you to take out a loan with the purpose of buying a home and improving upon it. This means that if you are buying a home that is less than perfect and is in need of repairs, you can use your FHA 203k rehab loan to finance repairs to make the home livable.<br \/>\n<strong>Loans for People with Less than Optimal Credit<\/strong><br \/>\nIf you have poor credit, you may be under the impression that getting a home loan isn\u2019t in your immediate future, and therefore you need to put the idea of buying a home on the back burner for awhile. However, there are still loans available for people with less than optimal credit, including many of the loan types mentioned above, such as the FHA loans, VA loans, and USDA rural housing loans. Some private lenders may also offer loans to those with less than optimal credit, although keep in mind that the interest rates on these loans may be higher than is reasonable.<br \/>\n<strong>See Our Homes for Sale Today in the Pacific Northwest<\/strong><br \/>\nAt Hayden Homes, we have a number of properties that may qualify for USDA rural housing loans (<a href=\"https:\/\/www.hayden-homes.com\/zero-down-home-loans-available-in-your-area\/\" target=\"_blank\" rel=\"noopener noreferrer\">view full list here<\/a>), and we also work with home financiers who can be helpful in answering questions and streamlining the home loan process to obtain your first home. To learn more, come see one of our brand new Hayden Homes today in <a href=\"https:\/\/www.hayden-homes.com\/state\/new-homes-oregon\/\" target=\"_blank\" rel=\"noopener noreferrer\">Oregon<\/a>, <a href=\"https:\/\/www.hayden-homes.com\/state\/new-homes-washington\/\" target=\"_blank\" rel=\"noopener noreferrer\">Washington<\/a>, or<a href=\"https:\/\/www.hayden-homes.com\/state\/new-homes-idaho\/\" target=\"_blank\" rel=\"noopener noreferrer\"> Idaho<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If\u00c2\u00a0you are thinking about buying a new home, then you probably already know that there could be myriad financing options available to you. Knowing which&#8230;<\/p>\n","protected":false},"author":2,"featured_media":38741,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[87],"tags":[160,140],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.2.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Determine Which Home Loan is Right for You - Front Door Blog by Hayden Homes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Determine Which Home Loan is Right for You - Front Door Blog by Hayden Homes\" \/>\n<meta property=\"og:description\" content=\"If\u00c2\u00a0you are thinking about buying a new home, then you probably already know that there could be myriad financing options available to you. Knowing which...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/\" \/>\n<meta property=\"og:site_name\" content=\"Front Door Blog by Hayden Homes\" \/>\n<meta property=\"article:published_time\" content=\"2017-07-28T16:00:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-13T20:15:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Amanda Kruit\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#website\",\"url\":\"https:\/\/www.hayden-homes.com\/blog\/\",\"name\":\"Front Door Blog by Hayden Homes\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.hayden-homes.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-scaled.jpg\",\"contentUrl\":\"https:\/\/www.hayden-homes.com\/blog\/wp-content\/uploads\/2017\/07\/HaydenHomes-190-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"How to Determine Which Home Loan is Right for You\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/#webpage\",\"url\":\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/\",\"name\":\"How to Determine Which Home Loan is Right for You - Front Door Blog by Hayden Homes\",\"isPartOf\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/#primaryimage\"},\"datePublished\":\"2017-07-28T16:00:40+00:00\",\"dateModified\":\"2023-06-13T20:15:47+00:00\",\"author\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#\/schema\/person\/d0d5ae422927dc064fca4db5cf94ec9d\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.hayden-homes.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to Determine Which Home Loan is Right for You\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#\/schema\/person\/d0d5ae422927dc064fca4db5cf94ec9d\",\"name\":\"Amanda Kruit\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/612788d5ef98cc2e743221db08441140?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/612788d5ef98cc2e743221db08441140?s=96&d=mm&r=g\",\"caption\":\"Amanda Kruit\"},\"url\":\"https:\/\/www.hayden-homes.com\/blog\/author\/amanda\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to Determine Which Home Loan is Right for You - Front Door Blog by Hayden Homes","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.hayden-homes.com\/blog\/determine-home-loan-right\/","og_locale":"en_US","og_type":"article","og_title":"How to Determine Which Home Loan is Right for You - Front Door Blog by Hayden Homes","og_description":"If\u00c2\u00a0you are thinking about buying a new home, then you probably already know that there could be myriad financing options available to you. 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