What are the different types of Mortgage Loans
The 30 year fixed rate mortgage loan is one of the most popular and secure home loan options available, especially if you want your monthly payments to be low and never change.
Offering loan flexibility and rate security if you want it, an FHA mortgage loan is an easy way to get a new home loan. Down payments can be as low as 3.5%.
With relaxed credit standards and low down payment options, the VA home loan is geared specifically to help veterans and military personnel get a mortgage loan and own a home.
USDA Rural Development has partnered with local lenders to help us extend 100% financing opportunities to rural individuals and families for a USDA mortgage loan. The Rural Development guaranteed loan program has assisted thousands of customers just like you.
A reverse mortgage loan is a type of mortgage loan similar to a home equity loan in that it allows you to borrow against the money you have already paid toward it. The difference is that you don’t have to pay it back until you move out, sell the home, or die. That means that you get the benefits of a home equity mortgage loan without the burden of making more payments.
A Jumbo mortgage loan is a type of mortgage loan that offers the same flexibility as a conforming loan. However, the only difference is that they are not eligible for purchase by Fannie Mae or Freddie Mac and must be sold in the secondary market. This means that the rates for a Jumbo mortgage loan will be slightly higher than a home loan with similar terms that are conforming loans. Sometimes you may hear a Jumbo mortgage loan referred to as a non-conforming mortgage loan.
A non-conforming loan is a type of mortgage loan that fails to meet bank criteria for funding. Reasons include the mortgage loan amount is higher than the conforming mortgage loan limit (for mortgage loans), lack of sufficient credit, the unorthodox nature of the use of funds, or the collateral backing it. In many cases, non-conforming mortgage loans can be funded by hard money lenders, or private institutions/money. A large portion of real-estate mortgage loans are qualified as non-conforming because either the borrower’s financial status or the property type does not meet bank guidelines.
A Hard Equity Loan requires little or no documentation. Therefore, if the borrower is unable or unwilling to provide the information or documentation needed for a conventional loan, a Hard Equity Loan may be appropriate. A Hard Equity Lender does not look at debts, credit, income, employment or tax returns. Hard Equity Loans are also appropriate for loans that need to be closed quickly.
A HomeReady™ Mortgage is designed to help lenders confidently serve today’s market of credit-worthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.
The HomeStyle Renovation mortgage permits borrowers to include financing for home improvements in a purchase or re-finance transaction of an existing home.
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More Information on Home Mortgage Loans
Consumer Financial Protection Bureau
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