Home Loans In Durham, North Carolina 

From buzzing startup culture to top-notch universities, even to its celebrated food scene, the city of Durham offers something for everyone. In addition to being North Carolina’s fourth most populous city, it is also the 75th-most populous city in the United States. 

Durham’s housing market is still hot despite the pandemic so if you’ve been thinking of buying a home here, you’re in luck. With that said, one of the first things that you’ll want to tackle is obtaining the necessary financing for your home purchase. 

Welcome to Capital Home Mortgage – Durham. If you’re looking to get a home loan in Durham, NC, we can help. At Capital Home Mortgage, we provide a wide range of home loan programs to meet different buyer needs. Let’s walk you through some of our most common mortgage product offerings. 

3 Types of Mortgages You Can Get in Durham, NC

• Government-Insured Or Guaranteed Loans

These home loans are exactly as they sound — loans that have the backing of the United States government. In other words, the government provides the assurance to mortgage lenders that the borrower will pay back the loan according to the terms of the agreement. 

The primary purpose of government-insured loans is so that certain borrowers who may be unable to obtain other conventional mortgage products can have access to mortgage credit, and therefore become bonafide homeowners. 

Common types of government-insured loans include:

1. FHA loans — insured by the Federal Housing Administration;
2. USDA loans — guaranteed by the United States Department of Agriculture;
3. VA loans — guaranteed by United States Department of Veterans Affairs;
4. HUD 184 Loans — insured by the Office of Native American Programs under the United States Department for Housing and Urban Development.

• Conventional Loans

These are loans that are not insured by the government. Instead, they are made available through private lenders, such as mortgage companies, banks, and credit unions. 

Because there is no guarantee from the government that you would pay back the loan, conventional loans tend to have more stringent eligibility criteria. 

For instance, conventional loans typically require borrowers to put a down payment of at least 20%. While lenders may be willing to accept a lower down payment, the borrower will be required to pay private mortgage insurance, which is around 1% of the property purchase price. 

• Jumbo Loans

Jumbo loans are designed to finance home purchases in which the cost is significantly higher than the loan limits set by the Federal Housing Finance Agency (FHFA). If you wanted to buy a luxury home or perhaps the home you want to buy is in a high-cost neighborhood, you might need a Jumbo loan to finance the deal. 

Because of the high amounts involved, borrowers must undergo more rigorous requirements before they can apply for a jumbo loan. In most cases, the borrower must have a stellar credit score and a low debt-to-income (DRI) ratio.

These loans also require a substantial down payment, usually around 10% to 15%. However, it’s a good idea to go higher so you can avoid paying for private mortgage insurance. 

Durham, NC Mortgage Lender

Capital Home Mortgage is a full-service mortgage lender serving residents across Durham. In addition to providing an extensive lineup of mortgage products, we are also 100% in charge of the loan application and approval process. This allows for quicker resolutions on applications, as well as more competitive fees and interest rates. 

With us, you can expect a streamlined, stress-free home buying experience from start to finish. At Capital Home Mortgage, we value transparency and open communication above all else. 

Apply For Your Home Loan in Durham, NC Today

Capital Home Mortgage caters to different categories of borrowers — from first-time homebuyers to seasoned real estate investors, even to retired veterans. Our loan officers will work with you to access the right home loan program for your needs. 

Give us a call now at (910) 500-6017 to get started. We look forward to providing you with your next Durham mortgage loan.