Houston Home Loans

There are many different types of home mortgage loan programs. They are:

Most Common Types of Home Mortgage Plans

•  Fixed-Rate Mortgage: you may select somewhere between 10 years and 50 years for a fixed rate mortgage, and each is entirely amortized.
• FHA Loan: this type of home mortgage plan is backed up by the government through mortgage insurance. First time home buyers are model candidates for this finance because the down payment requirements are minimal and FICO scores are not relevant.
•  VA Loans: this loan is a government loan available to veterans who have served in the United States Armed Forces and is normally applicable to the spouses of departed veterans. The requirements may differ depending on the year of service and what sort of discharge they received. The main advantage to a VA loan is the borrower is not required to put a down payment and the loan is also guaranteed by the Department of Veteran Affairs.

Hybrid Types of Mortgage Loans

• Adjustable Rate Mortgage Loan: the interest rate changes either monthly, semi-annually, annually, or may remain unchanged for a different period of time.
•   Mortgage Buydowns: the interest rate is lower because fees are paid to lower the rate. Buyers, sellers or lenders may buy down the interest rate for the borrower.