Types of exclusive mortgages

1.Convencional

Conventional mortgages are loans offered by private lenders without direct intervention from the federal government. These mortgages are typically a popular choice among buyers who have a good credit history and can offer a significant down payment, usually between 5% and 20% of the property's value. Borrowers who can't put up a 20% down payment must pay private mortgage insurance (PMI), which protects the lender in the event of a default. Conventional mortgages offer both fixed and adjustable rates, providing flexibility in terms and conditions depending on the buyer's needs.

2. FHA (Federal Housing Administration)

The FHA mortgage is insured by the Federal Housing Administration and is designed to help under-resourced homebuyers, including those with lower credit scores. With a down payment of as little as 3.5% and more flexible credit requirements, this option is accessible to many buyers who would not otherwise qualify for a conventional loan. However, all FHA mortgages require the borrower to pay mortgage insurance (MIP) both upfront and annually, which increases the total cost of the loan. FHA loan amounts are subject to limits set by the government, which vary depending on the location of the property.

3. VA (Veterans Affairs)

The VA loan is an exclusive benefit for current and former members of the armed forces, as well as some surviving spouses. This loan is guaranteed by the Department of Veterans Affairs, eliminating the need for a down payment and private mortgage insurance (PMI), making it easier to access the property. VA mortgages also offer very competitive interest rates and favorable terms. To qualify, applicants must obtain a Certificate of Eligibility (COE) confirming their military service. These mortgages are intended for the purchase of a primary residence, and borrowers must prove that they have the ability to repay the loan.

4. USDA (United States Department of Agriculture)

USDA mortgages are designed to encourage development in rural and suburban areas by offering fully financed loans, meaning no down payment required. These loans are backed by the United States Department of Agriculture and are available to income-eligible buyers who plan to live in areas designated as eligible. USDA mortgages also offer low interest rates and the ability to include closing costs in the loan amount. However, borrowers must meet the income limits set by the USDA, and the property must be located in an eligible rural or suburban area.

6. Adjustable-Rate Mortgage (ARM)

7. Jumbo Mortgage

Jumbo mortgages are loans that exceed the conforming limits set by Fannie Mae and Freddie Mac, used to finance high-value properties. Since these loans cannot be purchased or guaranteed by these government entities, lenders take on greater risk, and as a result, approval requirements are stricter. Borrowers must have an excellent credit score, high income, and a significant down payment, usually between 10% and 20%. Jumbo mortgages offer competitive interest rates, but are designed for buyers in strong financial standing who are looking to acquire luxury properties or in expensive real estate markets.

Contact us

Fill out the contact form below to schedule a free 30-minute consultation.

"Get Pre-Approved Today with Miami's Leading Mortgage Expert"

Adjustable-rate mortgages (ARMs) start with a fixed, low interest rate for an initial period, which is typically 5, 7, or 10 years. After this period, the interest rate adjusts annually based on a benchmark, which can increase or decrease the borrower's monthly payments. This type of mortgage can be attractive to those who plan to sell or refinance before the fixed-rate period ends, but it carries the risk that payments will become unaffordable if interest rates increase significantly. ARMs are best suited for buyers with a flexible financial plan and who understand the risk associated with rate adjustments.