Want to purchase your next Jacksonville property?
First of all, I’d like to take some time out and wish you luck with it. While you are planning on kickstarting the next phase of your life, I hope that you achieve all your goals and success.
While purchasing your next Jacksonville property, one of the problems you might face is financing it, which we’ll cover here.
In this blog post, we’ll be taking a brief look at the four most common financing types for purchasing your next Jacksonville property.
Top 4 Financing Types for Purchasing Your Next Jacksonville Property
Here’s the list:
- Federal Housing Administration (FHA)
- Veterans Affairs (VA)
- Conventional Loan
Let’s have an in-depth look at each of these options.
With cash, you won’t have to worry about any interests or the closing costs. There won’t be any appraisal fees, mortgage origination fees, or other fees that are charged by the lenders. Sellers love buying homes for cash.
We, at BuyingJaxHomes, ourselves buy homes in Jacksonville, Florida, for cash. And the best thing about us? We offer the highest offer that you’ll get in all of Florida, and you won’t have to take care of any fees like realtors’ fees, closing costs, etc.
Some buyers who don’t prefer offering cash back out as a result of financing being denied to them. So, that’s the reason people prefer cash over anything else.
Those who offer cash may even be subject to a cash discount, helping them get a steal deal on the property.
Here’s a list of benefits of buying a home with cash:
- You’ll be saving money on interest.
- No mortgage payments
- Not having to worry about the closing costs.
- Faster closing
And many more!
Federal Housing Administration (FHA)
Federal Housing Administration insures a Federal Housing Administration loan. An FHA loan will be issued to you by an FHA-approved lender, and these loans have been designed to help the low-to-moderate income borrowers. When compared to conventional loans, the credit score and minimum down-payment are comparatively lower.
You may even borrow up to about 96.5% of what your home value is in 2020. For that, you may expect to make a 3.5% down payment. Make sure that your credit score is more than 580. If it ranges between 500 and 579, you may still get qualified; however, you will have to make a down payment of 10% for that.
Here’s a list of buying a home with FHA loans:
- Smaller down payment
- Flexible Qualification Guidelines
- Low Credit Score
- Easier Streamlined Refinancing
- Assumable Loans
Veterans Affairs (VA)
If you are a service member or a veteran, you are in luck. You can always opt for a Veterans Affairs Loan. You’ll be amazed to take a look at its long list of benefits:
- In most cases, the eligible homebuyers won’t be required to make any down payment, which isn’t the case with FHA or conventional loans.
- No monthly PMI or mortgage insurance premiums to pay.
- No prepayment penalties
- Limitations on the closing costs.
- Second-tier entitlement
- Assumable mortgage
And so much more.
Government entities don’t offer these loans. You may apply for these loans through private lenders like credit unions, banks as well as mortgage companies. You’ll have to fill an official mortgage application and supply a long-list of documents like current credit score, credit history, background details, etc.
The downsides to these loans are that they have higher interest rates and down-payments.
Some benefits of purchasing your next Jacksonville home via conventional loans are:
- Can be used on different property types
- No set loan limit
- You can hold multiple conventional loans at the same time.
- Multiple loan program options
I’d say that you should go for these loans if you aren’t eligible for any of the other financing options above, as in this case, the qualification criteria is strict, and you may end up not rejected for a loan. And if you do get approved, you’ll be subject to higher interest rates and down payment.
BuyingJaxHomes Would Love Offering Cash for Your Previous Jacksonville Home
If you haven’t already sold your previous Jacksonville home, we’d love to offer you cash for it, making your next home purchase smoother and a mind-blowing process for you.
No more mortgage payments or down payments to worry about.
All you need to do is take all of that cash and purchase your next home, let me correct my words, dream home in Jacksonville.
So, what are you waiting for?
Fill our form attached below TODAY!