Most home buyers are unaware of their options when it comes to a mortgage. Many think they need a conventional mortgage, ensuring they have 20% of the home’s purchase price on hand for a down payment and a good enough credit score to qualify. However, there are other options on the table. For those who might not have the funds up front or the credit history to qualify for a conventional mortgage, there are unconventional ones.

FHA Home Loans

Home buyers benefit by learning about the unconventional mortgage choices. Where someone might not qualify for a conventional mortgage loan, he or she might have no problem getting a loan backed by the Federal Housing Administration.

And because these loans are backed by the federal government, lenders don’t have to use the same stringent qualifications as conventional loans. Where some people with a less-than-perfect credit score would have trouble securing financing for a loan, the FHA has found a way for them to fulfill their dream of being a homeowner.

In addition to having looser qualification standards, FHA loans don’t require as high of a down payment. Homeowners can put as little as 3.5% down for these loans. FHA loans are also assumable, therefore they can be passed on to another buyer when it’s time to sell.

Related Article: Top 7 Concerns of Home Buyers – and Barb’s Responses

USDA Home Loans

The United States Department of Agriculture provides unconventional loans, offering benefits that are not awarded to the typical residential mortgages. Similar to FHA loans, USDA mortgages allow those without the best credit history to qualify for a loan. However, these loans are only issued for low- and very low-income areas in rural parts of the country. These loans also require no down payment whatsoever, making them a highly attractive option.

More Helpful Information for Home Buyers

My name is Barbara Bottitta and I am a Realtor/Partner with Keller Williams Real Estate and team leader for the Barb Bottitta Team of Lehigh Valley Home Experts. Our team of professionals include a listing and closing specialist so that from the starting line to the dotted line you won’t find another agent or team that provides better service, works harder – or cares more – than my team. My husband, Lou, and I have lived in Lower Macungie for over 30 years; our grown children attended Emmaus High School and we feel fortunate that our grandsons are growing up in the Lehigh Valley as well!

Contact me for your Lehigh Valley area questions and real estate needs, and like my Facebook Page for area events, home ownership tips, real estate market updates, tips for home buyers and sellers, and so much more!

There are many great Lehigh Valley area homes for sale. Click here to perform full home search, or if you’re thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today’s market. You may also call me at (610) 398-8408 for a FREE home buying or selling consultation to answer any of your real estate questions.

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