Choose Your San Diego Home Loan

When it comes to San Diego home loans, there are several types geared to fit various needs. Here is important information about some of the most popular ones and why they might work for you. 

CONVENTIONAL

• This is the most popular option, often with the best interest rates
• Your interest rate is fixed for the life of the loan
• Your monthly payments remain the same throughout the loan

ARM (Adjustable Rate Mortgage)

• Interest rates typically start out lower and are locked at a set amount for an initial period
• An interest rate cap sets a limit on how high your interest can go throughout the course of the loan
• 5% of mortgages were ARM in 2010 compared to 62% in 1984

FHA (Federal Housing Administration)

• This is a government backed loan that makes it easier for first time buyers to get a home loan
• Requires a minimum credit score of 580 to qualify for the 3.5% down payment
• 4.8 million single family FHA mortgages currently in the U.S.

VA LOAN (Veterans Affairs)

• Only available to veterans
• Set limitations of buyers closing costs
• No mortgage insurance requirement

USDA (United States Department of Agriculture)

• Government program developed to promote the purchase of rural land
• Interest rates can be as low as 1%
• Metropolitan areas are generally excluded