There are many loan programs available, and some have probably been added since you first logged on to this website! It is important to familiarize yourself with the terminology and types of programs that may be offered to you when you go through the Loan Process.

Conventional Loans - Secured by government sponsored entities such as Fannie Mae and Freddie Mac. Used to purchase or refinance homes with first and second mortgages on single family to four family homes.

FHA Loans - Programs that help low and moderate income families become homeowners by lowering some of the costs of their mortgage loans. These loans are protected by the Federal Housing Administration and offer a number of attractive benefits such as low down payments, closing costs can be financed, fees may be lower and there are limits on the dollar values to insure that those low and moderate income families are the ones taking advantage of the program.

VA Loans - Veterans who served on active duty and were discharged under conditions other than dishonorable, during World War II and later periods are eligible for VA loan benefits. The loans may be for up to 100% of the sales price and are protected by the Veteran’s Administration.
Reverse Mortgage -A reverse mortgage is a special type of loan made to older homeowners to enable them to convert the equity in their home to cash to finance living expenses, home improvements, in home health care, or other needs.

Adjustable Rate - The interest rate changes at specified intervals (for example, every year) depending on changing market conditions and are usually tied to an index. If the index goes up, so does your payment, but if the index goes down, it will lower your payment. The benefit is that these loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home.

Fixed Rate - A common type of mortgage program, your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. They are normally available for 30 years, 20 years, 15 years and even 10 years.

Home Equity Line of Credit - Require you to use your home as collateral for the loan. Usually a “second” type of loan, they allow you to take advantage of the equity in your home and pull out some cash.

Balloon Mortgages - Shorter term mortgages that have some features of a fixed rate mortgage. They do not fully amortize over the original term, but instead the entire loan balance comes due at the end of the loan term.

Seller Carryback - The Seller agrees to loan the money for the purchase and “carries” the financing. Terms are fully negotiable, but usually in favor of the Seller.

Graduated Payment - A fixed note rate and payment schedule. The payments are usually fixed for one year at a time, but “graduate” to a higher payment the following year.

Buy Down - The Borrower pays an advanced payment to the Lender in exchange for a reduced payment for the initial terms of the loan.