The FHA Government Loan
An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans
The VA Government Loan
VA guaranteed loans are made by Mortgage One, a VA Automatic Lender, and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.
The Rural Development Loan
The Mortgage 1 Rural Housing program is dedicated to the preservation of rural communities. We partner with Rural Development, a division of the US Department of Agriculture, to help home buyers throughout the state realize the American dream of home ownership. This program, administered through the US Department of Agriculture, features 102% financing for qualified moderate-income families looking to purchase single-family homes. For borrowers with little or no cash, it’s ideal since no down payment and no funds are needed for closing.
The Jumbo Loan
A jumbo loan is a loan with a loan amount larger than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Currently the limit is set at $417,000 for most areas. Special areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands have a higher limit of $625,000. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate; as compared to conforming loan.
The HomePath Mortgage Financing
This special financing is available on Fannie Mae homes with the HomePath logo. Several benefits include low down payment and flexible mortgage terms, qualifying if your credit is less than perfect plus down payment (at least 5 percent) can be funded by your savings; a gift, a grant, or a loan from a nonprofit organization, state or local government, or employer. This unique financing also requires no mortgage insurance or appraisal fees.
The Conventional Loan
A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate.
The Reverse Mortgage
Reverse Mortgages are becoming popular in America. Reverse Mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash without having to credit or income qualify. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more. In addition, Seniors are able to use Reverse Mortgages to purchase a new primary home also, without any income or credit qualification too.
The Streamlined 203(k) Program
FHA’s Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.
Conforming (and Non-Conforming) Loans
A conforming loan is any loan that meets the criteria and limits set forth by the two largest buyers of loans, Fannie Mae and Freddie Mac. In order to fully understand the difference, you first must know a little bit about Fannie Mae and Freddie Mac.
The Balloon Mortgage
A balloon mortgage is usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a specific time.