Adjustable Rate Mortgage
Adjustable rate mortgages have an interest rate that may go up or down during the life of the loan.
Balloon Payment Loan
A fixed rate loan that is amortized over 30 years but becomes due and
payable at the end of a certain term (usually 1 to 3 years). May be extended or may roll-over
into another type of loan.
Buy-Down Loans are loans where the interest rate is reduced by paying the lender a percentage of the original loan amount when the mortgage is obtained.
Conventional loans usually require a substantial down payment (10-20%). When you are buying a “fixer upper” you
may need to use a conventional loan.
FHA loans are insured by the Federal Housing Administration under H.U.D.
They offer a low down payment (currently 3.5%), and can be a good option for buyers without a large down payment..
Fixed Rate Loan
A fixed rate loan has one interest rate that remains constant throughout
the life of the loan.
Non-Qualifying Loan (assumable)
Non qualifying loans are pre-existing loans which can be assumed by a
buyer from the seller of a property without going through the qualifying
process. The buyer pays the seller for their equity and then starts making
US Dept. of Agriculture (USDA) Rural Development (RD) loans are available in specific counties/cities with low population levels. These loans can be a great option for borrowers who need or want to borrow 100% of the purchase price.
For qualified veterans, VA loans are guaranteed by the Veterans Administration, and allow veterans to borrow 100% of the purchase price of a home.