There are several types of mortgage loans. Your lender will help you determine which is best for you and your circumstance.
- Usually amortized over fifteen to thirty years
- Usually available for home purchase or refinance
- Fixed rate, adjustable rate, balloon loan, interest only, 3 option, etc.
- Minimum down payment as low as 5%, but usually 10%; less than 20% down payment requires PMI (private mortgage insurance)
- Loans insured against default by the United States government
- Down payment usually less than 10%
- FHA adjustable rate mortgage has 1% rate increase with 5% lifetime rate increase
- All FHA mortgages requires mortgage insurance
- Buyer can finance up to 100% of sale price
- Buyer must have VA eligibility certificate
- Veteran can use VA program more than once
- Funding fee to guarantee the loan can be financed into the loan or paid in cash by buyer or seller