In this video, you will learn about a home loan. There are unconventional vs conventional loans. There are also subprime mortgages.
You want to make sure you avoid these. THese help people to get into a home when they are not in a good place financially. They are receiving help to buy a home. The reason to steer clean is they have high interest and terrible terms. If you are having to get into this type, you probably shouldn’t purchase a home. conventional loans are backed by the bank. Unconventional loans are backed by the government. If you know what you’re doing, this can give you a low downpayment. The unconventional loan has more risks. Don’t get discouraged if you are going the unconventional route. There can be a lot of advantages. The most important advantage to an unconventional loan. An FHA loan is awesome. It gives you the ability to go as low as 3% down. Then, the interest rate will remain low. THis is a great setup for you. YOu are pretty heavily leveraged. AT the end of the day, the less you put down, the more interest you are going to pay.