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The first thing that you should be aware of when looking for a Raleigh NC mortgage is that there are many options available to meet individual needs. Some loan types include: the FHA mortgage, the VA mortgage, Jumbo loans, and an 80/15/5. These loan types are outlined in more detail below. Your first step in shopping for a Raleigh NC mortgage should be to research all of the options available to you and then to discuss with a knowledgeable mortgage lender what the best option is for your needs.
One particular type of Raleigh NC mortgage is the FHA mortgage. This loan is a good option if you cannot afford to put 10% down on a home. This option allows you to put as little as 3% down and also allows the seller to fund up to 6% of the closing costs. This program is backed by the Department of Housing and Urban Development.
Another type of Raleigh NC mortgage is the VA mortgage. This loan was specifically designed for veterans and military personnel. The loan works similarly to the FHA loan and is backed by both the Veterans Administration and the federal government.
If you are looking to avoid having to pay PMI insurance, then a good Raleigh NC mortgage option for you may be the 80/15/5. This loan allows the buyer to put just 5% of the purchase price down. A first mortgage will be taken out for 80% of the purchase price and then a second mortgage will be taken out for the remaining 15% allowing the buyer to avoid paying jumbo rates.
One of the more traditional approaches to Raleigh NC mortgage is the Jumbo loan. There are several options available including 30-year fixed rate, 15-year fixed rate, and ARM products available. These products can be accomplished with full documentation, alternate documentation, or limited documentation.