Cincinnati Home Loan Credit Repair
Repairing your credit in order to establish a home loan is a great idea. Even if you have defaulted on loans in the past, there are ways to improve your credit so that you can receive another home loan. There are different loan types when it comes to buying a home. If you have defaulted on a home loan, the credit repair process may differ depending on the type of home loan that you had established. Here is some information about a few different types of home loans that our company can help you to repair.
A fixed rate home loan is a common and conventional type of home loan. These loans come with an interest rate that stays the same throughout the life of the loan. These loans usually last 15 or 30 years. This kind of loan is good for homeowners who have a down payment ready and who want to know what to expect when it comes to their monthly rates. Interest rates rise and fall, but owners of these loans will not be affected. If you plan to stay in your home for a longer duration of time, this may be a good loan option for those who want stability.
A loan that has an adjustable rate comes with lower interest rates that last for a shorter period of time and are subject to change in the future during the life of the loan. After the initial rate changes, the interest rate will tend to fluctuate annually for the remainder of the loan. This is a better loan option for those who do not have great credit. Also, if you plan to move or purchase another home in the near future, you may not be affected by the change of interest rate in the future.
This kind of loan is backed by the government’s Federal Housing Administration. With other loans, you can expect to have to put down a payment of 20% of the price of the home you would like to buy. However, with an FHA loan, you may only have to put down as little as 3.5%. This loan is best suited for people who have very little savings and who fit certain income requirements.
VA and USDA Loans
If you are an individual who has served in the military, a Veterans Affairs loan may be right for you as opposed to a loan of another type. These loans do not require a down payment or mortgage insurance requirements. USDA loans are government loans that is designed for those looking to purchase a home in a rural development. There is no down payment needed and usually interest rates are discounted as well.