When it comes to buying a new home, you have a lot of options available to you. Beyond just finding the house of your dreams, you have to choose a mortgage that fits your lifestyle, your budget, and your buying needs. There are loans for first-time home buyers, jumbo loans, FHA loans, and conventional loans in Kansas City, to name just a few. From the outside looking in, sorting out all these different loans can seem dizzying and confusing, but fortunately First Fidelis is here to offer some clarity on the different types of mortgages, and help you find the one that’s right for you.
In broad terms, there are two types of mortgages. Some mortgages are insured or guaranteed by government entities, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These are sometimes called “non-conventional” loans. Conventional loans, on the other hand, are any mortgages that are not backed by the government, including both conforming loans (the most common types of home loans, which conform to guidelines set down by Fannie Mae and Freddie Mac) and non-conforming loans such as jumbo loans and sub-prime loans.
The credit and financial requirements of conventional loans are sometimes more demanding than those of loans backed by government agencies, but they also bring with them a lot of advantages, perhaps the chief among them being flexibility. While VA loans, FHA loans, and others backed by the government have strict restrictions about the situations in which they can be used, conventional loans can be secured by just about any potential homeowner for just about any property, from single-family homes to condominiums and beyond.
Conventional loans in Kansas City are also fairly straightforward to get and quick to close compared to FHA and other government-backed loans, and can be serviced by virtually any bank. That makes the home buying process easier for you and for the seller, which can actually affect home price and your likelihood of having an offer accepted, especially in a competitive bidding situation. A seller may be willing to take a little less if they know that closing will happen quickly and that they will receive their money without having to jump through a lot of hoops.
Many applicants even find that they enjoy faster loan processing, lower mortgage insurance premiums, and even lower interest rates with conventional loans than they would with a non-conventional loan. At the end of the day, there is no one-size-fits-all solution when it comes to home loans. The right mortgage for you will depend on your personal situation, the house you want to buy, and your plans for the future. Choosing the right mortgage for your next home requires help from someone who knows the mortgage industry inside and out. That’s where First Fidelis comes in.
From conventional loans to first-time home buyer loans and beyond, our mortgage options are the best in Kansas City, and our home mortgage experts are here to help you find the perfect mortgage—whether you’re buying your first home or your fifth. To learn more about conventional loans in Kansas City and find the loan option that’s right for you, contact First Fidelis today!