Most Popular Mortgage Options

by Judy Spencer Dona, CRS, GRI, BROKER 12/01/2019

When it comes to financing your home, you have a several mortgage options available. Each type of mortgage offers different advantages, so be sure to do research before applying. Below are some of the most popular types of mortgages borrowers may consider. 

Conventional Loans

A conventional loan is a mortgage not insured by the federal government. In most cases, conventional loans will conform to the standards established by Fannie Mae and Freddie Mac. However, some lenders may offer loans that do not adhere to these standards, which are known as non-conforming loans. In most cases, conventional loans will require a down payment of 20 percent. Otherwise, you will have to pay mortgage insurance. 

FHA Mortgages

FHA mortgages are a popular type of government-backed loan that is designed to give people with lower credit scores and/or lower buying power the ability to purchase a home. If you opt for an FHA mortgage, you may not need to make as large of a down payment, but you will need to pay mortgage insurance. Backed by the Federal Housing Administration, these loans are popular among first-time homebuyers. 

VA Mortgages

VA mortgages are home loans backed by the U.S. Department of Veterans Affairs. These loans are available to current members of the military as well as veterans. If you qualify, VA mortgages are very beneficial, as they offer a lower interest rate and may not require a down payment. VA mortgages don’t require you to pay any mortgage insurance, either. 

Jumbo Mortgages

A jumbo mortgage is a loan that has limits higher than most other mortgages, which allows you to buy a more expensive property. These loans are most popular in areas where home prices are higher. Interest rates on jumbo mortgages are usually comparable to the rates paid on a conventional loan. However, the qualification requirements are much more strict. In most cases, you will need to show proof of significant assets, as well as a high credit score. Some lenders may offer other options, but the mortgages above are the most common. 

Keep in mind that even after you have chosen the type of mortgage you want, you will still have other decisions to make with regard to the type of rate and the length of the term. To make the best decision for your needs, consider working one-on-one with an experienced mortgage agent who can review your situation and help you choose the loan that makes the most sense.

About the Author
Author

Judy Spencer Dona, CRS, GRI, BROKER

You can learn a lot growing up on a farm in rural Illinois. Just ask Gillespie native Judy Spencer-Dona. When it came to the daily chores on her family's farm - raising the livestock and harvesting the crops - each member of the family did their part. And although she didn't realize it at the time, young Judy was learning invaluable life lessons that would be the foundation for her later pursuits. To this day, she'll tell you her strong work ethic and her commitment to getting the job done are direct results of her childhood days on her family's farm. Hometown Values Truth be told, Judy will always be a country girl at heart. Even though she moved away from her hometown for a period to take advantage of career opportunities, she carried with her the values she learned early on. While Judy was grateful for the chance to experience new places and meet new people, she always secretly longed to return to Illinois' rural countryside. She'll even tell you her love for her home grew stronger during her time away, which is whey she was even more grateful to be able to return to the area she cherished. It's been several years since Judy moved back, and she feels it more than ever - there's no place like home. She now has a different perspective on the area. More than ever she treasures the natural beauty, the easy-going atmosphere and, perhaps most importantly, the warm, friendly people. A Passion for Her Work With such a deep appreciation for all this special place offers, it's no wonder Judy is so passionate about her work. As the area's leading real estate professional, she finds few things more fulfilling than helping others in the community make the most of their opportunities here. Whatever your real estate goals, this dedicated professional is committed to getting the job done. Judy understands firsthand, there's no place like home. For buyers, she not only works hard to match you with the right home, but the perfect neighborhood to fit your unique needs. For sellers, Judy knows there are oftentimes many emotions involved in the real estate process. With genuine care and compassion, she covers the details and strives to make your transition smooth and worry-free. A Homegrown Professional Whether you're looking to buy or sell a home in Macoupin or Montgomery County, put your move in the hands of a homegrown professional who understands your needs. A professional who knows There's No Place Like Home. Make the most of your real estate opportunities and call Judy Spencer-Dona today to schedule a private consultation. • Full-Time Real Estate Broker • Top Producer in the combined counties of Macoupin and Montgomery since 1999 • Your Lake REALTOR with over $20,800,000 in lake sales alone • Works With New Construction and Custom Built Homes • Relocating?--Let me be your relocation resource • Your Mature Moves Specialist--Condominiums for 55 years young • Top Overall Producer for Century 21 Reid Baugher Realty since 1999 • Quality Service Award Agent (chosen by clients) • Centurion Award, Century 21 - '00-'07 & '13-'16 - Top 1% Nationally • Ruby Award -- Illinois Association of REALTORS President's Club - '01-'06, '14 • Diamond Award -- Illinois Association of REALTORS President's Club - '08-'12, ‘15