Types Of Mortgages
Although there are hundreds of variations of mortgage loans, below you’ll find some of the most popular types of mortgages. Although you may qualify for a certain type of loan, the terms, years, and interest rates may vary depending on the features of your specific loan.
Click on the mortgage options below to learn more about each of these types of loans.
Conventional Mortgages
The most common type of mortgage, which results in 35% to 50% of all new mortgage originations, is the conventional mortgage. The reason that this mortgage is so popular is because many lenders have a ready and willing investor for the loans in the secondary market consisting of both Fannie Mae and Freddie Mac.
The advantage of having a conventional mortgage is that you’ll be able to get the lowest mortgage rates available since you must conform to Fannie Mae and Freddie Mac’s stringent guidelines in order to qualify.
Click here to learn more about Conventional Mortgages!
FHA Mortgages
FHA mortgage loans are fairly popular once again since other “creative” mortgages are now almost non existent. While many people where taking advantage of 100% financing and no income verification loans for the last 5 years, FHA has reimerged as the loan of choice for many borrowers.
The biggest reasons why buyers and homeowners are choosing FHA mortgages is because they are insured by the Federal Housing Administration which steps in during rough times and more importantly, FHA mortgages require less down payment and slightly looser credit guidelines.
Click here to learn more about FHA Mortgages!
VA loans are government mortgages available to veterans who serve or served in the many arms of the U.S. military. In some cases, spouses of veterans are also eligible. The requirements and eligibility have different criteria depending on the number of years served as well as the discharge status (honorable or dishonorable).
Perhaps the two greatest advantages of obtaining a VA loan are the fact that the borrower isn’t required to have a down payment in order to purchase their home and that the loan is guaranteed by the Department of Veteran Affairs.
Click here to learn more about VA loans!
