From NAR
NAR’s Consumer Guide to Mortgages and Financing helps homebuyers navigate their loan options and understand key factors affecting their purchase.
Key Mortgage Types:
- Conventional Loans: Require higher credit scores and down payments.
- FHA Loans: Government-backed option for buyers with lower credit and smaller down payments.
- VA Loans: Exclusive to eligible veterans and active-duty service members, often with no down payment.
Factors That Impact Financing:
- Credit Score & Debt-to-Income Ratio: Affect loan eligibility and interest rates.
- Down Payment: Larger payments can improve loan terms.
- Employment History: Stability can increase approval chances.
By understanding these mortgage options, clients can make more informed decisions, feel confident in their financing choices, and move forward with their home purchase smoothly.
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