From House to Home: A Homeowner’s Guide to Mortgage Loans

From House to Home: A Homeowner’s Guide to Mortgage Loans

Homeownership is an exciting prospect as one of your first big steps towards independence. Having your own property also has a lot of benefits to offer. Besides serving as a place to call your own, it can also be a valuable asset that you can sell for a profit in the future.

However, purchasing your own property can be difficult if you’re planning to save up for it. The prices can fluctuate based on the economy and are usually on an upswing. This can make your savings unable to keep up with the cost of the home you intend to purchase.

There is more than one way to finance your home purchase, fortunately. Using mortgage loans, you can purchase your ideal home in Grand Junction even if you haven’t saved up the entire price of the house. Take a look at the various types of home loans and see which one applies to you.

FHA Loan

An FHA loan is issued by the Federal Housing Association and was made to accommodate first-time homebuyers or people with low credit scores. There are also special types of FHA loans available that allow people to construct or renovate their homes.

It has the advantage of requiring a smaller than usual down payment amount and a fixed mortgage interest rate. The loan duration can usually be 15 or 30 years. However, the maximum loan amount is around $400,000, which can limit your options.

A minimum credit score of 500 is required, although if you exceed 580, you can make a smaller down payment. Your debt-to-income ratio must be below 50, and it includes debts that you aren’t actively paying. The property you intend to purchase is subject to the FHA’s approval.


VA Loan

Offered by the Department of Veteran Affairs, a VA loan is a great option for people who have served in the US Military. To qualify, one must have served for 90 consecutive days in the war, 180 consecutive days during peacetime, or stayed in reserves for six years.

It offers a generous amount of benefits, such as having no required down payment. Payment for private mortgage insurance is not needed since the government is the provider. Loan limits are also dependent on the lender and how much they are willing to provide.


The US Department of Agriculture offers this loan to homeowners who have low to moderate income and intend to live in a rural area. They also have various options, such as constructing a new home, renovating an existing property, or relocating it entirely.

There is no minimum credit score to qualify, although applicants who have a credit score below 640 will undergo manual underwriting, which can be a stricter process. There is also a maximum income limit, which is around $86,000 for small households and $114,000 for larger ones.

Looking at the various types of loans, one can say the homeownership is not a pipe dream. If you intend to apply for any of these loans, make sure to prepare the required documents properly and research if the property you intend to purchase follows the loan specifications.

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