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 Mortgages

203k Rehab Loan
203k Rehab Loan

An FHA 203(k) rehab loan, also referred to as a renovation loan, enables homebuyers and homeowners to finance both the purchase or refinance along with the renovation of a home through a single mortgage.

Adjustable Rate Mortgage (ARM)
Adjustable Rate Mortgage (ARM)

With an adjustable-rate mortgage, your interest rate can change periodically. Generally, the initial interest rate is lower than on a comparable fixed-rate mortgage as well.

source: bankrate.com
image: list.ly
Close-Ended Loans
Close-Ended Loans

A closed-end mortgage can have a fixed or variable interest rate and, along with open and convertible mortgages, is common in Canada. An open mortgage can be repaid early but will have a higher interest rate, while a convertible mortgage blends characteristics of closed and open mortgages.

Conventional 97 (Fannie Mae)
Conventional 97 (Fannie Mae)

Fannie Mae offers 97% LTV/CLTV/HCLTV financing options to help lenders serve qualified home buyers and to support refinance of Fannie Mae loans.

source: fanniemae.com
image: rubyhome.com
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. Three other options — FHA, VA and USDA loans — are backed by the federal government.

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
Home Possible + Home Possible Advantage (Freddie Mac)
Home Possible + Home Possible Advantage (Freddie Mac)

Home Possible Advantage? Freddie Mac ... see if your borrower meets the income requirements for a Home Possible mortgage, or if the home they're interested in is ...

HomeReady (Fannie Mae)
HomeReady (Fannie Mae)

HomeReady® is designed to help lenders confidently serve today’s market of creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities.

source: fanniemae.com
Jumbo Loans (non Government-Insured)
Jumbo Loans (non Government-Insured)

A jumbo mortgage is a plus-size home loan weighing in at a dollar amount above what are called the conforming loan limits. A jumbo loan will typically come with more demanding requirements than a smaller, conforming mortgage.

source: bankrate.com
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: fha.com
Non-Conforming Loans
Non-Conforming Loans

Differences Between Conforming Loans and Nonconforming. Conforming loans are backed by Fannie Mae and Freddie Mac, ... Finding the Right Mortgage, Mortgages.

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

A mortgage that allows you to borrow against equity is an open-ended mortgage. Open-Ended Mortgage Basics Open-ended mortgages give homeowners the flexibility to use the equity invested in their homes as a source of credit.

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

Which is the better mortgage option for you: fixed or adjustable? ... All of these things should factor into your decision between a fixed-rate mortgage and an ...

source: bankrate.com
image: tdwealth.net
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 loan. The differences between these two mortgage types are covered below.

Option 3: Jumbo vs
Option 3: Jumbo vs

Conforming rates vs jumbo mortgage rates. Jumbo loans typically carry higher interest rates than conforming mortgages. Jumbo mortgage rates are back, however, and they are looking good! In the bad old days, the difference between conforming mortgage rates and jumbo rates ranged between half a point to two full points.

Secured Loans
Secured Loans

Types A mortgage loan is a secured loan in which the collateral is property, such as a home. A nonrecourse loan is a secured loan where the collateral is the only security or claim the creditor has against the borrower, and the ... A foreclosure is a legal process in which mortgaged property is sold to pay the debt of the defaulting borrower.

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 Loans
USDA Loans

USDA does not endorse any specific private sector lenders. This list of Nationally Approved Lenders is not inclusive of all participating lenders. Income limits (pdf) are dependent upon location of the home, and the number of persons residing in the home.

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

Interested applicants are encouraged to contact their local mortgage lenders to inquire about applying for the guaranteed loan. USDA does not endorse any specific private sector lenders. This list of Nationally Approved Lenders is not inclusive of all participating lenders.. Income limits (pdf) are dependent upon location of the home, and the number of persons residing in the home.

source: rd.usda.gov
image: e-co-op.com
VA Jumbo Loans
VA Jumbo Loans

Any loan amount above those limits is considered a "jumbo" mortgage and has higher rates compared to loans at or below the $417,000 conforming limit. Regardless of the loan limit, conventional mortgages require a down payment while VA loans do not.

source: military.com
VA Loans
VA Loans

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