Are you better off applying for an FHA loan, a conventional loan, or a VA loan? The answer depends on your situation.

Today I’m joined by Ryan Erekson of Guild Mortgage to shed some light on the mortgage loan process and answer some questions you might have about applying for a loan.

First, what types of loan products are available and what’s the difference between them?

There are a lot of different loan products out there, but Ryan says that the three most frequently used by homebuyers are the FHA loan, VA loan, and conventional loan. The main difference between these types of loans is the qualifications required for them, and whichever one is best for you depends on your financial situation.

An FHA loan, for example, is primarily meant for first-time homebuyers who don’t have a lot of money to put toward their down payment and don’t have the best credit score. In that sense, it’s easier to qualify for. In fact, it was specifically created for homebuyers who couldn’t qualify for conventional loans.

"The main difference between these types of loans is the qualifications required for them."

A conventional loan is comparable to the FHA loan in terms of what percentage you’re required to put down, but qualifying for it depends more on your credit score and the amount of money you put down. Even though it’s more expensive up front than the FHA loan, according to Ryan, it’s a better long-term loan option.

A VA loan is specifically for veterans of the Armed Forces. It doesn’t require any money down, and Ryan says this is the best option out of all three.

If you’re a homebuyer and you’re trying to figure out which loan you should apply for, your best course of action is to consult with a professional lender like Ryan so they can advise you. Find someone who’s really going to take the time to understand you and your financial goals and help you make a game plan.

If you have any more mortgage questions for Ryan, you can give him a call at (702) 528-6235 or email him at rerekson@guildmortgage.net.

As always, if you have any other real estate questions for me, don’t hesitate to call or email me as well. I’d be happy to help you.