You have many options for types of loan, including loan options for veterans, people looking for homes in rural areas, borrowers who have experienced credit problems in the past, homes in more expensive areas, and homeowners looking to renovate or even build a property. We recommend you look at some of the options, as it may have an impact on what type of home you consider buying.
A conventional refinance is not issued through a government-insured loan program and offers a good deal in the way of flexibility. It can be used for a second home or investment property, and can save you money on mortgage insurance.
The U.S. Department of Veterans Affairs coordinates a refinance loan program for current and former members of the U.S. armed forces (and some surviving spouses). These refinances offer many advantages, including no down payment, no private mortgage insurance, low rates, and flexible underwriting guidelines.
If you have limited income or you’ve experience credit problems in the past such as bankruptcies or foreclosures, a refinance insured through the Federal Housing Administration might be your best bet. They offer flexibility on criteria like income and credit, and interest rates as low as 3.5 percent
If you’re looking to get a refinance on a more expensive property, a jumbo refinance might be your best bet. This is the category for refinances exceeding loan limits that the Federal Housing Finance Agency sets, and which vary year-to-year. That limit was $484,350 for much of the country as of 2019, but an extended limit can apply to areas with more expensive real estate, such as San Francisco or New York City.
Income-qualified borrowers looking to get refinances on homes in U.S. Department of Agriculture-approved rural areas can enjoy a number of benefits through this government-insured loan program. They include no down payment, low interest rates and flexible underwriting guidelines
This can be the perfect all-around option if you want to get some work done on your home. A cash-out refinance can give you access to money from the equity you’ve already invested in your home, which you can then apply toward the renovations. You can handle the financing for the renovation and the mortgage in one transaction – saving both time and money.