Whether you’re scaling up for a growing family, scaling down for the “empty nester” years, or just ready to put down roots, buying a home is an exciting time. But it can also be overwhelming, especially when it comes to financing. If you’re worried about getting lost somewhere between viewings and escrow, don’t worry. The friendly, local team at DEXSTA is here to help you navigate the nuances of buying a home in Delaware.
Understanding the different types of mortgages
The first step to buying a home in Delaware is qualifying for a home loan. Investigating who can give you the best mortgage plan is always in your best interest. Shop around and find out the different types of mortgage loan amounts you can qualify for. The five most common mortgage types are:
- Conventional mortgage: used for your primary home or investment property
- Adjustable-rate mortgage: a low initial interest rate for significant savings
- Fixed-rate mortgages: predictable monthly payments
- Government-insured mortgages: FHA, VA, and USDA to make homeownership accessible for qualified borrowers
- Jumbo mortgages: borrowers who need more than what the federal limit is for a standard mortgage.
While there are other types of home loans, like construction loans and balloon mortgages, you will want to go over your financial situation with someone who knows the business, like one of our mortgage loan officers. To learn more about the different types of mortgages, Bankrate provides a helpful video for fast insights.
Benefits for first-time homebuyers
If it’s your first time buying a home, then this section is crucial. Buying a home can be exceptionally challenging for a first-time buyer, but this status also gives you an advantage. As a first-time buyer, you gain access to state programs, tax breaks, and federally-backed loans if you can’t meet the minimum down payment—usually 20% of the purchase price.
For example, Delaware also has a special tax credit for first-time homebuyers that makes buying a home more affordable. Here’s how it works. You can claim up to 35% of the annual interest paid on your mortgage as a special federal tax credit, up to $2,000 a year. This credit reduces your total federal tax owed—that’s dollar-for-dollar savings!
DEXSTA makes buying a home in Delaware easier!
It’s no secret that credit unions offer stellar mortgage rates and fees. Since credit unions are member-owned non-profit organizations, we use our profits to reduce costs and fees and offer higher savings rates. We can help you achieve your big dream of buying a home in Delaware. Our experienced team of mortgage loan officers can show you how to start planning your future as a homeowner.
Here at DEXSTA Federal Credit Union, we pride ourselves on offering great rates and mortgage services for our members. You can unlock the house of your dreams when you choose DEXSTA Federal Credit Union.