#29: Which home loan is best for you as a first time homebuyer? A breakdown of the top 3
Most first time home buyers will have to go through the home loan process to purchase their homes. Not many have $200,000+ to purchase and that’s okay because there are 3 main loan types that I recommend you consider: FHA loan, conventional loan and the VA loan. And if you manage it right, it will provide you with a strong return on investment.
Loan 1: The FHA loan has many benefits. The main one is the down payment amount. Before the FHA, you didn’t have the opportunity to put down as little as 3.5% on your future home. This helps to level the playing field and allow more people to purchase their homes.
Loan 2: The conventional loans’ main benefit is that there is no private mortgage insurance. This is not to be confused with homeowners insurance, which is required for everyone. This is only applicable if you put down 20% for your down payment. Anything less than 20% will require private mortgage insurance.
Loan 3: The biggest benefit of VA loans is that there is no downpayment. Like wow! However, this is only applicable if the sales price is at or lower than the home’s appraised value (which an appraiser will confirm).
One of the biggest challenges that my followers share with me is centered around finances. They want to know how much they should save for a down payment and ultimately, that will be impacted by which home loan you decide to go with.
Keep watching to learn more about the top 3 loan types around as well as the pros and cons of each.
Resources:
[VIDEO] My debt free journey: https://youtu.be/C0Tyt3n7PCY
The #1 Workbook for first-time homebuyers: https://www.maximizedmoney.com/ready-to-own
Biggest mistake I made in my homebuying journey: https://youtu.be/Yn-LsYujGtA
First time homebuyer loans:
https://www.maximizedmoney.com/first-time-homebuyer-loans
Instagram (we have lots of fun over here):
https://www.instagram.com/maximized.money
Podcast: Real Estate Prep:
https://www.maximizedmoney.com/episodes (available on all streaming platforms)
Ready to find the right real estate agent for you? Download my free checklist for questions to ask:
https://www.maximizedmoney.com/homebuyers-checklist
Want to get your finances together for your big home purchase? Join my free Homebuyer Goals Challenge:
RECENT EPISODES
