Buying a new home can be exciting. However, looking for financial resources to help purchase your dream house can be stressful. That is why some people resort to forming relationships with banks and mortgage companies to request a home loan in Los Angeles, CA.

Different Types of a Home Loan in Los Angeles, CA

There are various types of home loans you can apply for depending on your credit score and financial status. Some examples of a home loan in Los Angeles, CA are the following:

Fixed-Rate Home Loan in Los Angeles, CA

In a fixed-rate home loan in Los Angeles, CA, you will have a constant amount of payment for the whole period of your loan. Since the interest rate does not change in this type of home loan in Los Angeles, CA, you can still have control over your monthly budget.

There are two variations of a fixed-rate home loan in Los Angeles, CA: the 15-year and 30-year loan terms. The benefits of a 15-year term is that it has lower interest rates and it also allows you to pay your debt in a shorter period of time. However, if you prefer smaller monthly payments, you should opt for a 30-year home loan.

Adjustable-Rate Home Loan in Los Angeles, CA

This type of home loan in Los Angeles, CA is usually a hybrid with a fixed-term loan. An adjustable-rate home loan in Los Angeles, CA starts with a low interest rate in order to look appealing for potential clients.

You will have a fixed interest rate for the first few years. However, for the succeeding years, your monthly payments will keep on adjusting depending on the movement of interest rates on the markets.

FHA Home Loan in Los Angeles, CA

The FHA home loan in Los Angeles, CA is guaranteed by the Federal Housing Administration. This home loan in Los Angeles, CA is a great option for borrowers with low credit scores. In an FHA home loan in Los Angeles, CA, you can also get little to zero down payment.

VA Home Loan in Los Angeles, CA

Backed by the Department of Veterans Affairs, this type of home loan in Los Angeles, CA is designed for members of the U.S. military and their families. With a VA home loan in Los Angeles, CA, mortgage insurance is not required and veterans can also get zero down payment.

USDA Home Loan in Los Angeles, CA

This home loan in Los Angeles, CA is designed by the United States Department of Agriculture for families living in rural areas with low income. The USDA home loan in Los Angeles, CA does not require money down and can also offer competitive interest rates.

Factors That May Affect the Type of Home Loan in Los Angeles, CA

Your credit history and score, as well as the location and price of the house you want to buy, can affect the type of home loan in Los Angeles, CA you may apply for. Some banks or mortgage companies can deny your application for a home loan in Los Angeles, CA if they see that you have a bad credit history or a low credit score.

For the approval of your application to a home loan in Los Angeles, CA, you need to find an expert lending company that will help you throughout the whole process. If you are looking for a trusted mortgage company that will fund your home loan in Los Angeles, CA, turn to Purpose Funding.

Get a Stress-Free Home Loan in Los Angeles, CA

If you need financial assistance in purchasing your dream house, get in touch with Purpose Funding. We make sure to provide loan services that meet the needs of our clients. Our team of expert mortgage brokers can also provide you competitive loan rates. Find out how we can help you purchase your dream home. Give us a call today!