Hello again from the Vermont Mortgage company! We hope your week thus far has been pleasant. We are back again with Part 2 of our blog for the week. Before, we explained the difference between a fixed rate and an ARM mortgage. Now, we’re going to look at the different kinds of mortgages that are available, either through the government or conventional loans. Both of these options have their own pros and cons, so finding out which one is best for you can help tremendously in buying a house!


The first  is the conventional mortgage. These mortgages are your typical kind that you can expect. They aren’t insured or guaranteed by any government agency. These can be very good for those with excellent credit scores. If you are able to put down 20% or more down on the payment, you can avoid PMI entirely! (We wrote up a blog about PMI before, check it out on our website!) This can bring down your monthly payments if you already have a good amount of funds in order. Along with  choosing something like a fixed rate mortgage could mean your monthly payments will be lower and predictable, eliminating a lot of headaches.

Your other option for a mortgage is a government subsidized one. These can come in a few different kinds, depending on some factors. These are as follows:

FHA – a loan through the Federal Housing Administration. These are great options for those who don’t have a lot to put down on a mortgage, offering mortgages with down payments as low as 3.5%! The only downside is that you will have to pay for the mortgage insurance, increasing the amount you pay monthly.

VA Loans – These are loans through the US Department of Veterans Affairs. These are loans offered to members of military service and family members. The benefits of this loan is that you can receive 100% financing, meaning no down payment.

USDA/RHS – These loans are done through US Department of Agriculture, by the Rural House Service branch. These mortgages are for rural areas and residents who have a slow or steady income. As long as your income isn’t above 115% of the average median income of the county, you will be eligible for this kind of program.


This is only a very brief overview of these kinds of programs. Naturally there are a plethora of details that we just can’t fit into a single blog. For more information on these programs, or to see if you can qualify for one of them, give us a ring! We can go over all the steps and info you’ll need to begin your mortgage journey. Call us at 802-863-2020, or visit our page at vermontmortgagecompany.com!

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