There are many options out there when trying to find financing for your new home. Finance options available for townhomes can be a little different but in many cases are treated as a single-family home.

Fixed-Rate Loans

This is the most common type of conventional loans. This loan is suited for the buyer that is planning on living there for a long time and wants the payments to be the same every month. These loans offer an interest rate that is set at the agreed-upon percentage for the life of the loan.

Adjustable-rate Mortgage

The adjustable-rate mortgage does exactly what it says. The interest rate adjusts to the corresponding interest rate. There is a fixed rate period of time at the beginning of the mortgage. The length of that period is depending on the lender. These adjusted payment plans change your monthly payment with the way of the current interest rates. As the interest rates go down, so do your payments, and as they go up, so do the payments. The interest rates for adjustable-rate mortgages are typically less than that of the fixed-rate loans.

FHA Loans

Federal Housing Administration loans require less of a down payment than that of the typical home loan. Most loans require a 20% down payment while the FHA loans can have a low as a 3.5% down payment. These loans are similar to the fixed-rate loans but also require buyers to pay mortgage insurance.

There are many other loan types available, but many require certain circumstances to be met. We would be happy to answer any questions you may have.