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Which Mortgage Option Is The Best Fit? Let Our Trusted Lender Partner Answer All Your Questions!

Friday, January 31, 2025   /   by Sell With Jana Caudill

Which Mortgage Option Is The Best Fit? Let Our Trusted Lender Partner Answer All Your Questions!

As you’re exploring your mortgage options, there is more than one choice. Marnie Cutrone, Senior Loan Originator with CrossCountry Mortgage, LLC shares a few of the common mortgage products available to help you make the decision that best suits your lifestyle. 

1. Fixed-Rate Mortgage 

This is the most traditional mortgage type, where your interest rate stays the same for the entire term of the loan— usually 15, 20, or 30 years. It provides stability and predictability since your monthly payment won’t change, even if  market rates fluctuate. This is a great option if you plan to stay in your home for a long time and prefer a consistent  budget. 

2. Adjustable-Rate Mortgage (ARM) 

An ARM offers a lower initial interest rate than a fixed-rate mortgage, but the rate can change after a set period— typically 5, 7, or 10 years. After the initial period, the rate will adjust periodically based on market conditions. This  could be a good option if you plan to move or refinance before the rate adjusts, but it does carry some risk if interest  rates rise. 

3. FHA Loan 

A Federal Housing Administration (FHA) loan is a government-backed mortgage that is ideal for first-time  homebuyers or those with less-than-perfect credit. The down payment can be as low as 3.5%, making it easier for  buyers to get into a home. Keep in mind that there are mortgage insurance costs associated with FHA loans. 

4. VA Loan 

If you’re a current or former service member (or the spouse of one), a VA loan could be an excellent option. It offers  great benefits, such as no down payment and no private mortgage insurance (PMI), making it an affordable choice  for veterans and their families. 

5. Jumbo Loan 

A jumbo loan is used for home purchases that exceed the conforming loan limits set by the Federal Housing Finance  Agency (FHFA). Since these loans are higher than typical loan amounts, they often come with stricter credit and  income requirements. However, if you're purchasing a luxury home or in a high-cost area, this could be your best  option. 

6. USDA Loan 

A USDA loan is backed by the U.S. Department of Agriculture and is designed for homebuyers in rural and suburban  areas. These loans typically require no down payment and offer competitive interest rates. They are available to  buyers who meet certain income requirements and are purchasing in designated rural areas. 

7. Non-QM Loans (Non-Qualified Mortgages) 

Non-QM loans offer flexibility for borrowers who may not meet traditional mortgage requirements. Here are a few  types of Non-QM loans you may want to consider: 

Investor Cash Flow Loans / DSCR (Debt Service Coverage Ratio) Loan 

Ideal for real estate investors who may not have traditional income documentation, DSCR loans focus on the  income generated by the property rather than personal income. This is a great option for those purchasing  investment properties. 

Asset Qualifier Loan 

Uses your savings, investments, or retirement funds to qualify rather than income from employment. This is  ideal for individuals with significant assets but less regular income.

Bank Statement Loan 

Perfect for self-employed individuals or business owners, this loan looks at your bank statements rather than  tax returns to verify income, making it a great option for those with irregular income. 

Foreign National Loan 

For international buyers, this loan allows non-U.S. citizens to purchase property in the U.S. without needing a  U.S. credit score, usually with a larger down payment. 

Profit and Loss (P&L) Loan 

Designed for self-employed borrowers who can provide a profit and loss statement from their business rather  than traditional income documentation, such as W-2s. 

8. Down Payment Assistance Programs 

If you’re a first-time homebuyer, there are many state and local programs that can help with down payments. These  programs offer grants, low-interest loans, or even deferred payments to make homeownership more affordable.  Depending on your situation and the area you’re looking to buy, you may be able to reduce or eliminate your down  payment requirement. I can help you explore which options might be available in your area. 

9. First-Time Homebuyer Programs 

First-time homebuyers may also qualify for special loan programs that offer lower down payments, reduced fees, or  more flexible credit score requirements. Programs like the FHA loan or certain state-sponsored homebuyer  assistance programs can be great options for someone purchasing their first home. These programs often have  specific eligibility criteria, but they can make buying your first home more accessible. 

Each of these mortgage products has unique advantages and requirements, and I’m happy to help you choose the right one based on your needs and financial situation.

If you have any questions or want to discuss which option makes the most sense for you, feel free to reach out. We are here to help guide you every step of the way. 

Learn more or schedule a call by visiting https://janasellsflorida.com/agent/marnie-cutrone
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2025 Royal Palm Coast REALTORĀ® Association. All rights reserved. Information has not been verified, is not guaranteed, and is subject to change. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange (IDX) of the Florida Gulf Coast Multiple Listing Service, Inc. Real estate listings held by brokerage firms other than IDX logo and detailed information about them includes the name of the listing brokers. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Last Updated: 2/11/2025 1:35 AM CST
The data relating to real estate for sale on this limited electronic display comes in part from the Southwest Florida Multiple Listing Services. Properties listed with brokerage firms other than are marked with the BR Program Icon or the BR House Icon and detailed information about them includes the name of the Listing Brokers. The properties displayed may not be all the properties available through the BR Program. The source of this real property information is the copyrighted and proprietary database compilation of the participating Southwest Florida MLS organizations and is Copyright 2017 Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. Some properties that appear for sale on this limited electronic display may no longer be available. For the most current information, contact Data last updated 2/11/2025 1:35 AM CST.
The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2025. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
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