There are many loan options available. Make sure you get the best fit for you.
If you’re looking for stability, a fixed rate mortgage is for you. As its name implies, a fixed rate mortgage is one where the interest rate on your home loan remains the same throughout its duration, as opposed to a loan where the interest rate may change over time. You’d be in good company with this loan; fixed rate mortgages are the most popular form of home loan in the United States.
In comparison, the adjustable rate mortgage is one in which homeowners aren’t guaranteed the same interest rate for the duration of their loan. The interest rate may change periodically, usually in relation to an index, and payments may “adjust” up or down accordingly.
In many instances, fixed rate mortgages have higher mortgage payments than adjustable rate mortgages. However, the risk of an increasing interest rate is something that borrowers should take into account when considering an adjustable rate mortgage.
Typically, loans with longer terms will have a higher interest rate than loans with shorter terms due to interest rate risk, or the possibility of fluctuating interest rates.
Are you a first time homebuyer? FHA home loans, which are insured by the Federal Housing Administration , are loans designed to help both first-time homebuyers and experienced homeowners by providing them with a low down payment.
First United is an FHA-approved lender. The Federal Housing Administration (FHA) is a government entity that offers mortgage insurance for many different types of homes, including single-family and multifamily homes. FHA mortgage insurance serves as protection for lenders in the event of a homeowner defaulting on their home loan. (Sidenote: It’s completely funded by its own self-generated income, so there is no cost to taxpayers for its operation and services.)
Learn more about FHA home loans.
VA home loans are reserved for active military members and veterans. They are guaranteed by the U.S. Department of Veterans Affairs to allow eligible veterans and active military personnel to buy a home or refinance. They are designed to provide long-term home financing to qualified veterans and, in some cases, their surviving unmarried spouses. In many instances, their interest rates can be better than other conventional loans.
Learn more about VA home loans.
USDA home loans are designed to encourage rural land development and growth in rural areas. They aren’t just for farmers anymore; the program has been expanded in recent years to give more people who wish to purchase or refinance in a rural area access to the incredible benefits offered by these loans.
Learn more about USDA home loans.
Do you dream of building your own home?
First United offers a one-time close construction to permanent loan program that provides the foundation for your construction needs. It’s designed to provide financing to build, remodel or improve a primary residence, which means you can move through the steps of construction with peace of mind, knowing your permanent financing needs are already in place.
First United also offer a two-time close construction to permanent loan program that involves two separate loans, with one to cover the long-term financing. When the first loan agreement is signed, the lender releases funds to a house account and begins paying draws to the builder upon your approval. The borrower will pay interest only during the construction period. Once the house is complete, the borrower must re-qualify for a permanent mortgage, which typically results in lower mortgage rates and greater flexibility.
Learn more about our construction loan options.