Will have the same interest rate for the life of the loan. The 30-year fixed-rate mortgage is the most common term owners select, because it has the lowest monthly payment and the rate never increases.
Will have a low initial interest rate, usually for five years and then the rate will increase annually. This is best for homeowners who only plan on living in their house for five years, or if the homeowner plans on paying off the loan within five years.
One of the most popular types of home loans used for first-time buyers. They have the lowest credit score requirements of any mortgage type. First-time homebuyers who have a low credit score and minimal savings are able to qualify for an FHA loan. The down payment on an FHA loan can be gifted by a family member or a friend. Some first-time homebuyers may be eligible for down payment assistance or other grants from the federal government.
If you’re a veteran then you qualify for a VA home loan. Offer numerous advantages for those who qualify such as zero percent down payment. VA loans do not require mortgage insurance, thus saving the homeowner around $2,000 per year.
USDA/RSA mortgages are intended for homebuyers in rural areas of the country; they do not require a down payment and they have low mortgage insurance fees.
Funds both the purchase of the home and renovations or repairs on the property. FHA loans require the property to be in livable conditions; intended for properties that are known as “fixer-upper.”
Are conforming loans, meeting Fannie Mae and Freddie Mac guidelines. They are offered by private lenders and are not insured by the FDIC. They require personal mortgage insurance; however, the PMI fee is typically lower for FHA loans.
Conventional loans are stricter than government loans; they require a 620-credit score and a down payment between 5-20 percent. Mortgage insurance is not required if the borrower puts down at least 20 percent. PMI is removed once the loan to value reaches 78 percent.
Real Estate investors will need a conventional mortgage because Government Loans are intended for homeowners who plan on occupying the property as their primary residence.
For people who need a loan that exceeds the conventional loan limit in their area. Jumbo loans are more difficult to qualify than conventional loans, due to the higher loan amount. Jumbo loans require a higher down payment, the minimum down payment would be between 15%-20% required.
Traditional refinance of a conventional loan, or an FHA into a conventional. This will lower your rate and monthly payment. Many who have an FHA loan choose to refinance to a conventional because mortgage insurance would no longer be required.
Are known as a second mortgage, because you will have two separate payments. A home equity loan provides you with cash up to 80 percent of the properties market value. Works as a line of credit, you can borrow as you need to, and you only pay interest on what is borrowed.
Where one refinances their mortgage to get cash using the equity in their home. You will have one mortgage payment and the rates are typically lower with a home equity loan. You can cash out up to 80 percent of the home’s value.
This is for government home loans such as FHA, VA, and USDA. Quick and easy way to refinance government loans to a lower rate. Streamline does not require a credit check or income verification, thus less paperwork.
Locks your rate up to 120 days. American Financial Funding Corporation’s Lock While You Shop program delivers freedom to the homebuyer’s experience.
A mortgage program that protects up to the full amount of the home buyer’s down payment in the event of selling for a loss in a down market.*