Types of Loans

Do you really have a good Home Loan?

What types of loans are available?

Conventional Loans
These loans are provided by non government-sponsored programs. Usually they are FHA, VA or  FHS. There are many loan types to select from.
Categories include:

-Fixed Rate Loans

-Adjustable Rate Loans (ARMs)

-Combination (Hybrid) Loans

-Balloon Mortgages and Pledge Asset Loans

-Jumbo / Construction Loans

-Reversible Mortgage

Conforming Loans
These loans are just like conventional loans; however Fannie Mae and Freddie Mac conditions and regulations apply. These two stock-holding companies purchase mortgage loans from lending institutions and secure them for resale to the investment community. Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans.

Jumbo Mortgage Loans
These are loans that are above the maximum loan amounts established by Fannie Mae and Freddie Mac. Rates on jumbo loans are generally higher than conforming loans. Jumbo loans are used to purchase expensive and high-end custom construction homes.

B/C Loans
Loans that do not meet the credit requirements of Fannie Mae and Freddie Mac are referred to as B, C and D paper loans. These loans are available to those people who filed for bankruptcy, foreclosure and who have bad credit. These loans are temporary loans until the applicant can qualify for "A" loans. The interest rates on B/C loans vary.

Government Loans
These loans are offered to low to moderate income homebuyers, and guaranteed by different government agencies. The lenders have to follow a specific government guideline for these types of loans.           There are several categories of government loans:

-FHA Loans
FHA loans have lower down payment requirements and are easier to qualify for. They are administered by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development.

-VA Loans
VA loans are sponsored by the U.S. Department of Veteran Affairs. They guarantee loans for eligible veterans, active-duty personnel, and surviving spouses. These loans offer competitive rates, lower or no down payments, and minimum income requirement.

-RHS Loans
RHS loan programs ensure affordable housing for low- to moderate-income level rural residents to purchase, construct, repair, or relocate rural-related facilities. Lower down payments, and sometimes none at all, are required. These loans are guaranteed