A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Types of Mortgage Loans

203k Rehab Loan
203k Rehab Loan

FHA 203k loans are designed to help borrowers finance an older home that needs significant repairs. To get an FHA 203k loan, you must work with an FHA-approved lender. You will also have to provide a detailed proposal of the work you want to do.

source: zillow.com
Adjustable Rate Mortgage (ARM)
Adjustable Rate Mortgage (ARM)

Adjustable rate mortgages (ARM loans) have a set interest rate, which adjusts annually thereafter. The set rate period for ARM loans can last for 3, 5, 7, or 10 years. ARM loans are often a good choice for homeowners who plan to sell after a few years.

source: zillow.com
Close-Ended Loans
Close-Ended Loans

What is 'Closed-End Credit' Closed-end credit is a loan or type of credit where the funds are dispersed in full when the loan closes and must be paid back, including interest and finance charges, by a specific date. The loan may require regular principal and interest payments, or it may require the full payment of principal at maturity.

Conforming Loans
Conforming Loans

Conforming loans are backed by Fannie Mae and Freddie Mac, and are typically below $679,650. Nonconforming or "jumbo" loans have higher values and interest rates. We'll help you choose the right loan type for you.

Conventional 30-Year Fixed
Conventional 30-Year Fixed

The 30-year conventional fixed-rate mortgage has long been popular due to its fixed interest rate and lower monthly payments. However, since the interest payments are spread out over 30 years, you'll pay more interest over the life of the loan than you would on a shorter-term mortgage.

source: usbank.com
Conventional Loans
Conventional Loans

A fully amortized conventional loan is a mortgage in which the same principal and interest payment is paid every month, from the beginning of the loan to the end of the loan. The last payment pays off the loan in full. There is no balloon payment. Conforming loan limits are $417,000.

Conventional Mortgage
Conventional Mortgage

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government and conforms to the loan limits set forth by Freddie Mac and Fannie Mae. You can get a conventional loan at a fixed or adjustable rate.

Fannie Mae Home Ready
Fannie Mae Home Ready

Unlike government-insured loans, ... borrowers may have the option to cancel their mortgage insurance once their home ... not affiliated or endorsed by Fannie Mae.

source: fanniemae.com
FHA Loans
FHA Loans

An FHA loan is a type of government-backed mortgage insured by the Federal Housing Administration, a branch of the U.S. Department of Housing and Urban Development, or HUD. FHA borrowers pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

source: bankrate.com
FHA Mortgage
FHA Mortgage

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+.

source: zillow.com
Freddie Mac Home Possible
Freddie Mac Home Possible

Freddie Mac Home Possible mortgages are designed to grow your business and attract low- and moderate-income borrowers, first-time homebuyers, and underserved communities. Use the resources below and discover why a Home Possible mortgage may best fit for your borrowers' needs.

Mortgage Insurance
Mortgage Insurance

Most private mortgage insurance is paid monthly, with little or no initial payment required at closing. If you get a Federal Housing Administration (FHA) loan, your mortgage insurance premiums are paid to the Federal Housing Administration (FHA). FHA mortgage insurance is required for all FHA loans.

image: seterms.com
Non-Conforming Loans
Non-Conforming Loans

In order for a mortgage loan to be conforming, it must meet the specific criteria that allow Fannie Mae and Freddie Mac to purchase the loan. The most significant of these criteria is the loan limit, which refers to the maximum amount of the loan that Fannie Mae or Freddie Mac will purchase.

image: snipview.com
Open-Ended Loans
Open-Ended Loans

A loan can be a closed-end loan or an open-end loan. A closed-end loan is often an installment loan in which the loan is issued for a specific amount that is repaid in installment payments on a set schedule.

Option 1: Fixed vs Adjustable Rate
Option 1: Fixed vs Adjustable Rate

One advantage of an adjustable-rate mortgage is the low initial cost, but the security of fixed monthly payments makes a fixed-rate loan a more popular choice. Find out if an ARM or fixed-rate loan is better for you.

source: bankrate.com
Option 2: Government-Insured vs Conventional Loans
Option 2: Government-Insured vs Conventional Loans

Option 2: Government-Insured vs. Conventional Loans So you'll have to choose between a fixed and adjustable-rate type of mortgage, as explained in the previous section. But there are other choices as well. You'll also have to decide whether you want to use a government-insured home loan (such as FHA or VA), or a conventional "regular" type of ...

Option 3: Jumbo vs
Option 3: Jumbo vs

What Are Jumbo Loans? ... for a Jumbo Mortgage Different? Jumbo mortgages have the same overall qualifying ... gets you most available loan options, ...

source: zillow.com
Secured Loans
Secured Loans

Secured loans are loans that are protected by collateral. When you apply for a secured loan, the lender will want to know which of your assets you plan to put up as collateral. The lender will then place a lien on that asset until the loan is repaid in full.

source: bankrate.com
Traditional FHA
Traditional FHA

One clear difference between a conventional loan and an FHA loan is mortgage insurance, which lenders use to help protect themselves from loss. In the case of an FHA loan, the U.S. government provides insurance for the loan, meaning that if you default on the loan, your lender’s loss is covered by the government.

image: goodcall.com
Unsecured Loans
Unsecured Loans

Secured loans usually offer lower rates, higher borrowing limits and longer repayment terms than unsecured loans. As the term implies, a secured loan means you are providing "security" that your loan will be repaid according to the agreed terms and conditions.

source: greenpath.com
USDA / RHS Loans
USDA / RHS Loans

USDA’s Rural Housing Service offers a variety of programs to build or improve housing and essential community facilities in rural areas. We offer loans, grants and loan guarantees for single- and multi-family housing, child care centers, fire and police stations, hospitals, libraries, nursing homes, schools, first responder vehicles and equipment, housing for farm laborers and much more.

source: rd.usda.gov
USDA Rural Housing Loan
USDA Rural Housing Loan

USDA Rural Development does not directly offer workout plans to distressed homeowners in the Single Family Housing Guaranteed Loan Program as USDA is not a financial lending institution.

source: rd.usda.gov
Veteran Loan (VA)
Veteran Loan (VA)

A VA loan is a mortgage loan that’s backed by the Department of Veterans Affairs (VA) for those who have served or are presently serving in the U.S. military. While the VA does not lend money for VA loans, it backs loans made by private lenders (banks, savings and loans, or mortgage companies) to veterans, active military personnel, and military spouses who qualify.

source: zillow.com