Learn More About Mortgages
Believe it or not, there are dozens of different mortgages available to today's homebuyers. It's crucial to research at least a few potential lenders if you want to secure the best rate and terms for your loan. Your agent or mortgage broker will be able to offer recommendations and guide you in the right direction if you have any questions!
Want to learn a little more about your options? Here are a few of the most popular mortgages here in the Forsyth County area.
Common Mortgage Options in the Winston Salem, Greensboro and the surrounding areas
Conventional loan
- Often used by buyers with good credit, low debt, and moderate to high income
- Requires a 10% – 20% down payment
- Typically lasts between 15 – 30 years
- Strict credit and income requirements
VA loan
- Available to most active, retired, and veteran military personnel and their spouses
- Backed by the VA and financed by approved lenders
- Little to no down payment without private mortgage insurance (PMI)
- May require a one-time funding fee
FHA loan
- Targeted towards lower- to moderate-income buyers with lower credit scores
- Down payments as low as 3.5%
- Private mortgage insurance (PMI) required
- Can have higher interest rates
USDA loan
- Targeted towards buyers with a low to moderate steady income
- Little to no down payment required
- Private mortgage insurance (PMI) required
- Check the USDA availability map for more details
Balloon mortgage
- Payments are based on a 30-year term, but the loan lasts for 5 – 7 years
- At the end of the term, the borrower must pay off the balance, refinance, or sell
- A good option for commercial properties or buyers who don't plan to stay in their home for very long
North Carolina programs
- The North Carolina Housing Finance Agency offers a variety of affordable loans and down payment assistance programs
- Available to first-time and repeat home buyers
- Options include the NC Home Advantage Mortgage, NC Home Advantage Tax Credit, and more
The Winston Salem, Greensboro and the surrounding areas programs
- First-time buyers in the Winston Salem, Greensboro and the surrounding areas are eligible for the Triad Housing & Community Development Homeownership Program
- Offers funds towards your down payment and closing costs
- Can be combined with other mortgage programs
Lender-specialty loans
- Available to first-time buyers, lower-income buyers, or other niche groups
- Can offer lower interest rates, payments, and qualification requirements
- Be sure to shop around for the best deal
Ready to Calculate Your Monthly Payments?
Now that you're familiar with the different types of mortgages, it's time to start calculating. Use our mortgage calculator to estimate your monthly mortgage payments at various home price points, interest rates, down payments, insurance and tax costs, and more. Let us know if there's anything we can do to help!