There are several different types of mortgages you may apply for; whether a first time loan or when you refinance, and your home lender or mortgage broker can provide you with assistance to determine which programs you qualify for. Some of the more common types of home mortgage loans available to you include:
An FHA loan generally provides homeowners with low interest rate financing, and these loans are designed to take the first lien position. They are only available for real estate that is occupied as a primary residence, and they have maximum loan amount restrictions that may make them unsuitable for some borrowers.
A VA loan is a loan that is guaranteed by the Veterans Administration, and these are available only to veterans, active duty military professionals and surviving spouses of fallen soldiers. These are known for having low interest rates and low fees, but they also have loan limits in place.
Conventional loans are another option, and they may have more flexible underwriting guidelines than FHA and VA loans. They are available with fixed rate, adjustable rate and interest only options, and you may request a term of 15, 20 or 30 years. These may be available with very low interest rates if you meet minimum credit score requirements.
A jumbo loan is a loan with a loan amount over $417,000, but in some markets with high real estate values, the minimum loan amount may be higher. These are generally designed for high net worth borrowers, and the underwriting guidelines may be more stringent than with conventional loans.
These are unique mortgages that are becoming more popular with retirees in recent years. They allow you to obtain cash payments that draw from the equity in your home, and you may not have to make payments on the funds you draw until after the house sells.