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What Type of Home Loan is Best For You?

Oct 13, 2022

What Type of Home Loan Is Best For You

When it comes to home purchases and refinances, there are several options available. It can feel overwhelming to research the best rate on your own.

Thankfully, Legacy Mortgage is here to help you consider all your options. We care about finding the right loan that will work best for your financial goals. 

Below is an overview of a few of the most common types of loans:


A conventional loan may be the most common type of home loan. These loans accept down payments as low as 3% for first-time homebuyers, and can be used for primary or secondary homes. Conventional loans are not backed by the US government, and can sometimes have more strict qualifications. Most conventional loans conform to the standards set by Fannie Mae and Freddie Mac. A conventional loan also places emphasis on your credit score and down payment to determine your mortgage rate.


Are you or your spouse an active member or veteran of our US Military? If so, a VA loan would be a good option for you. With low rates and no down payment minimum required, VA loans are often considered to be one of the best types of loans for home purchases and refinances. Another advantage is that VA loans do not require mortgage insurance. However, there is a funding fee required for these loans, which can be paid for upfront or rolled in with your closing costs.


We can look to FHA loans as a great option for first time home buyers. These loans are backed by the government, and can help borrowers who have small down payments and have lower credit scores. In fact, FHA loans can approve borrowers with a credit score as low as 500.


Do you dream of wide open spaces? For individuals looking for a home on a little more acreage, or in a more rural area, you may be able to qualify for an USDA loan. The US Department of Agriculture offers home loans for low to moderate income borrowers who are seeking a home in rural or suburban areas. If you are local to the East Texas area and meet the income requirements, you may be eligible for an USDA loan if the property is outside of the Tyler, Longview, or Marshall city limits, regardless of acreage.

You may be able to qualify for more than one type of loan. Our loan officers will talk through several other factors, including: monthly payment, credit score, income, and upfront cash to close.

Ultimately, our team cares about finding the best type of loan to help you meet your financial goals.

To get started on the pre-approval process, give us a call today at 903-312-7036!