Families looking for a mortgage Tucson may have specific situations that qualify them for select home loan services. Having dependents, being a member of the military, a veteran, lower income, and so on may open up a closet of special financing options that are not available to all people in the area. Some of these special programs may help families purchase a home, when otherwise they would not qualify for funding.
One of the most popular programs for families is FHA financing. This allows the borrowers to pay less per month, and take out the loan for a term of 33 years instead of the traditional 30. This program is for those who make a little less than average and have children or dependents. The house must meet certain qualifications, and the family must have plans to live in the house themselves. Certain repairs, like roof repairs or siding, can be financed into the loan to make the home livable.
mortgage Tucson offers both fixed rate and adjustable rate mortgages. A fixed mortgage rate has a benefit that the interest rate stays the exact same for the duration of the loan. A borrower does not have to worry about spikes in rates or their mortgage amount jumping up. Some people do want an adjustable rate loan because they want to take advantage of current low rates. They may choose to refinance later when rates are adjusted and rise. When a mortgage is adjustable, it is often called an ARM, which is short for adjustable rate mortgage. The rate is typically adjusted after the first, third, fifth, and seventh year or term.
Another type of home loan that is great for families is a VA loan. This type of loan is from the US Department of Veterans Affairs. The perk of this type of loan is the home can cost up to $412,000 without a down payment needed. This program is great for those who served in the military and do not want to put a large lump sum of money down towards a home. This type of loan is great for families, as it is way more flexible than a traditional home loan.