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If you're planning to purchase a home, check your
financing options. The number and variety of financing options
may seem overwhelming at first, but most fit into these categories.
Adjustable-rate mortgage (ARM):
A loan with an
interest rate that fluctuates according to the movements of a
predetermined index.
Conventional mortgages are labeled as such to
differentiate them from government-backed loans such as FHA or
VA loans.
Farmers Home Administration (FmHA)
These government
loans are available to persons of moderate or very low income
in rural or
non-metropolitan areas.
FHA-insured loan
Insured by the Federal Housing
Authority, these loans will insure a mortgage on a new or existing
single-family house for a high percent of the property value.
Downpayments are low and loans are assumable.
Fixed-rate mortgage
A loan with an interest rate
and monthly payments that do not vary.
VA-guaranteed loan
Guaranteed by the Veterans
Administration, these loans are available to eligible veterans
to buy, refinance, construct or repair a home.
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