Before I started writing about real estate, I honestly had no clue about anything to do with mortgages. Most millennials are probably in the same boat. The housing market collapse that we experienced in high school and college probably has something to do with most of us being skittish about the idea of buying a home. The friends I have that are planning on buying a home soon are trying to save as much cash as possible, so they can try to avoid a mortgage altogether.
However, paying for a home in cash is often not an option for most people. That’s where home loans come in. Before getting one, though, it’s important to educate yourself on the different types. If you’re totally clueless, like I was, this infographic by Platinum Home Mortgage is a great place to start. Here are some of the most basic mortgages that you may qualify for:
-FHA Loans- easier to qualify, low monthly payments, lower interest rates from the Federal Housing Administration
-Conventional Loans- more financing options, need good credit to qualify
-VA Loans- for armed forces vets, offers zero down payment and low monthly payments
-USDA Rural Housing Loans- limited to rural areas, offers zero down payment and low monthly payments as well.