There are a number of different types of home loans available to you, and it can pay to familiarize yourself with them. Luckily we're here to help you choose the best type of home loan for your needs.
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The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan's lifetime.
Adjustable-rate mortgages include interest payments which shift during the loan's term, depending on current market conditions. Typically, these loans carry a fixed-i...
Interest only mortgages are home loans in which borrowers make monthly payments solely toward the interest accruing on the loan, rather than the principle, for a specif...
A 3-2-1 buydown temporarily lowers the interest rate on your mortgage by 3 percentage points the first year, 2 percentage points the second year, and 1 percentage point the third year. After that time, your mortgage will revert to the original rate. .
A conventional loan is a type of loan that is not insured by the government. Conventional loans offer more flexibility and fewer restrictions for borrowers, especially those borrowers with good credit and steady income.
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no ...
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $750,000 in...
Non-QM loans are mortgages that don't meet the Consumer Financial Protection Bureau's (CFPB) requirements to be considered qualified mortgages.
This type of loan can be beneficial for borrowers who may not qualify for a traditional conventional or government mortgage by meeting the more stringent employment or income guidelines. This alternative underwriting process allows for only one year or tax returns or just started a new business may utilize this type of loan evaluation of bank statements, assets, P&L's.
The U.S. Department of Agriculture (USDA) home loans program offers mortgages to low-income residents of rural areas who cannot otherwise obtain a conventional mortgage.
If you live in a rural area and can't qualify for a conventional loan, you may qualify for either a USDA guaranteed loan or a USDA direct loan.
Debt-Service Coverage Ratio (DSCR) loans enable real estate investors to qualify for an investment property based on rental income generated rather than personal income. These loans are ideal for self-employed investors, investors with multiple mortgaged rental properties, and investors looking to grow their portfolios. Unlike traditional mortgages that focus primarily on the borrower’s credit score and income, DSCR mortgages look at the cash flow of the property itself to determine the borrower’s ability to repay the loan.