When it comes to buying a home in Nevada, one of the most important decisions you’ll make is choosing the right mortgage. There are several different types of mortgages available, each with its own advantages and disadvantages. Here are a few of the most common types of mortgages available in Nevada:
- Fixed-rate mortgage: This type of mortgage is the most common and straightforward. It offers a fixed interest rate for the life of the loan, which means your monthly payments will remain the same. This is a good option if you plan to stay in your home for a long time.
- Adjustable-rate mortgage (ARM): An ARM offers an initial fixed interest rate for a certain period of time, typically five or seven years. After that, the interest rate can change annually, which means your monthly payments can increase or decrease. This is a good option if you plan to sell your home before the fixed period ends.
- Federal Housing Administration (FHA) loan: An FHA loan is a government-backed loan that is designed for first-time homebuyers or those with lower credit scores. It requires a lower down payment and has more flexible credit requirements than traditional mortgages.
- VA loan: A VA loan is a government-backed loan that is available to active-duty military personnel, veterans, and their families. It offers 100% financing and has more flexible credit requirements than traditional mortgages.
- Jumbo loan: A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. It is a good option if you need to borrow a large amount of money to purchase a high-value property.
- USDA loan: A mortgage offered by the United States Department of Agriculture for low- to moderate-income families in rural areas, with benefits that include no down payment, lower interest rates, and flexible credit requirements. Property and income eligibility requirements apply. It can be a good option for those seeking an affordable mortgage.