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Whether you’re buying your first home, moving up, or downsizing, knowledge is power when making important financial decisions.There are a variety of financing options for mortgages in KC that are differentiated by their loan structure and the agencies that secure them.

Conventional Loans

Conventional loans are mortgages in KC that are not insured by the federal government. This kind of financing in split into two categories: conforming and non-conforming. Conforming loans adhere to the guidelines set forth by Fannie Mae and Freddie Mac. The benefits of conventional loans include:

  • No maximum loan limit
  • Conforming limits are higher than FHA loans
  • No monthly mortgage insurance required if your down payment is 20% or more of the home’s purchase price
  • Can be used on all property and occupancy types

FHA Loans

FHA mortgages in KC are insured by The Federal Housing Administration. They are typically popular with first-time homebuyers because these loans are backed by the U.S. government. Therefore, lenders are protected against defaults. This protection makes it possible for loan officers to offer borrowers more competitive interest rates on traditionally risky loans. Other advantages of a FHA loan include:

 

VA Loans

VA home loans are guaranteed by the U.S. Department of Veterans Affairs. Although the VA backs these mortgages in KC, the agency itself does not actually issue the loans. This type of financing is based on military entitlement and is available to:

  • Veterans
  • Reservists
  • Active-duty personnel
  • Surviving spouses of veterans

VA loans offer qualifying participants:

  • Up to 100% financing
  • Financing for one-time required VA funding fee
  • More flexible qualification guidelines than conventional loans
  • Competitive interest rates

Like FHA loans, closing costs can be covered from a gift or a grant. In addition, VA loans do not have any out-of-pocket costs or monthly mortgage insurance premiums for qualified borrowers

Want to Learn More About Financing Options for Mortgages in KC?

Contact a Cornerstone Loan Officer today at (800) 965-9910

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