Fixed Rate Mortgage
This loan is fully amortized over an extended period of time and features a constant interest rate and consistent principal and interest payment amounts over the life of the loan.
Adjustable Rate Mortgage (ARM)
This loan has an interest rate that is recalculated once a year based on a designated index rate. The payment amount is also recalculated annually. The interest rate and payment amount may increase over the life of the loan.
Federal Housing Administration (FHA) Mortgage
This loan is issued by a government - approved lender and insured and administered by the Department of Housing and Urban Development (HUD). FHA loans generally require less down payment and less stringent qualification requirements than conventional loans. FHA does not limit the maximum amount an individual can borrow under this program based on the location of the property. As with all mortgage loans, any borrower is eligible to apply for an FHA loan regardless of income level.
Veterans Affairs (VA) Mortgage
VA loans are guaranteed and administered by the Department of Veterans Affairs and are intended to benefit qualified individuals who have served in the armed forces. The significant advantage of a VA loan is that a down payment is not required in most cases. If you are a qualified veteran and wish to purchase a home without a down payment, it may be wise to compare Conventional loans and FHA loans with VA loans to determine which financing is best for you. Only qualified veterans can obtain VA financing.