What Type of Homebuyer Are You?

What Type of Homebuyer Are You?

There are so many differences in goals, priorities, attitudes, and demographics that homebuyers bring into their decision making process when purchasing a property. Your current life circumstances and the things you value are a major factor when determining the location and type of home you buy. No matter what type of homebuyer you may be in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage is here to help. Continue reading about different types of homebuyers and finding the right mortgage for your situation.

First-Time Homebuyers

If you are a first-time homebuyer, there are several loan programs available to help you afford a down payment and closing costs. Making a down payment is a requirement with most mortgages, and can be a significant expense when buying a home. There are down payment assistance programs available to first-time buyers to help cover the initial costs of a down payment. Government-backed loans such as FHA, VA, and USDA loans can be a pathway for first time homebuyers because they help buyers who have lower credit or a lower down payment qualify for a mortgage.

Upgrading or Downsizing Buyer

If you are a homeowner who is either considering upgrading your home or downsizing from your current residence, Foundation Mortgage can help you find the right financing option. There can be several reasons to upgrade from the home you are currently living in; perhaps your needs have changed and you need more space or you desire to live in a different neighborhood. Conversely, some people may be interested in downsizing homes in order to move into a more practical or affordable property.

Buying a Vacation Home

There are many benefits to purchasing a vacation home, because not only can it offer your family an exciting periodical getaway, it can also be lucrative in other ways. Purchasing a vacation home can offer the potential for home appreciation, tax incentives, a great place for get-togethers, and a higher rental income when you are not staying at the property. There are different types of financing options to consider that can help you purchase a vacation home, such as conventional loans, using a cash-out refinance from your primary residence, or a home equity line of credit, (HELOC).

Buying an Investment Home

Buying a home in order to rent it or resell it can be a great way to make supplemental income. It is important to note that in addition to managing operating and mortgage costs, you will also have to consider who your tenants are, which can involve some risk. In most cases, you will not be able to use an FHA or VA loan to purchase an investment property, but conventional loans, non-QM loans, hard money loans, home equity loans, etc. can offer a pathway to owning an investment property.

Regardless of the type of homebuyer you are in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can work closely with you to determine the best financing option available.


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