The type of loan your buyer acquires can affect the sale of your property. It is important to understand some of the basics that you are not surprised when an offer comes to the table. Here are three common mortgage loan types and how they can impact you:
- Conventional: Next to a cash sale, the conventional mortgage is the strongest because the buyer typically has better credit, has to put more money down, and there are a not a lot of restrictions on you, the seller.
- FHA: A Federal Housing Administration loan is guaranteed by the government. Borrowers on an FHA loan must pay mortgage insurance, and because of this insurance appraisals are more extensive and you may be required to make certain improvements to the home in order to close.
- VA: A Veteran’s Administration loan is very similar to FHA loan, the main differences being that the buyer must be a veteran to qualify, and they pay no monthly mortgage insurance. Again, you may be required to make improvements not otherwise required for a conventional loan. For more information click here.
Our team understands these, as well as all other intricacies of selling your home. Let us help you get moving by providing you with a free comparative market analysis that you can understand the current value of your property.