Types of Mortgage Loan:
The mortgage loan types available can be divided into two different categories viz., one as Conventional and Government loans. Secondly, all the various mortgage programs may be further classified as fixed rate loans, Adjustable rate loans and their combinations.
Conventional and Government Loans:
Any mortgage loan other than FHA, VA or an RHS loan is conventional one.
FHA Loans:
The Federal Housing Administration called FHA, which is a part of the U.S. under Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit.
VA Loans:
VA loans are guaranteed by U.S. Government under Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans without a down payment with favorable loan terms. The VA loan is easy to qualify than a conventional loan. Lenders generally fix a limit to the maximum VA loan to $203,000. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. After determining your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used for applying of a VA loan.
Related Keywords: Loans – Do you need Loan .. Know what is loan and why you need it..-Home Loans, Mortgage Loans…
No comments:
Post a Comment