loans TYPES OF MORTGAGE Insured by the FHA, these loans often have more lenient qualification criteria, making them suitable for first-time homebuyers. FHA (FEDERAL HOUSING ADMINISTRATION) Available to eligible veterans, active-duty service members, and some surviving spouses, offering favorable terms with no down payment. VA (DEPARTMENT OF VETERANS AFFAIRS) Backed by the U.S. Department of Agriculture, these loans are designed for homebuyers in eligible rural areas and offer low to no down payment options. USDA LOANS Loans with a constant interest rate and monthly payments throughout the entire term, typically 15 or 30 years. FIXED-RATE MORTGAGES Standard mortgages not insured or guaranteed by a government agency. CONVENTIAL LOANS Loans with an interest rate that may change periodically, often with an initial fixed-rate period followed by adjustable rates. ADJUSTABLE-RATE MORTGAGES Borrowers pay only the interest for a specified period, usually 5-10 years, before converting to principal and interest payments. INTEREST-ONLY MORTGAGES Loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac, typically used for higher-priced homes. JUMBO LOANS Short-term loans with relatively low monthly payments for a fixed period, with a large "balloon" payment due at the end. BALLOON MORTGAGES Available to homeowners aged 62 and older, these loans allow seniors to convert home equity into cash, and repayment is typically deferred until the homeowner sells the home or passes away. REVERSE MORTGAGES Loans that allow homeowners to borrow against the equity in their homes, often used for major expenses or home improvements. HOME EQUITY LOANS Short-term loans to finance the construction of a new home, often converted to a traditional mortgage after construction is complete. CONSTRUCTION LOANS Combining a first and second mortgage to avoid private mortgage insurance (PMI) and reduce the down payment. COMBO/PIGGYBACK LOANS Similar to home equity loans, but with a revolving line of credit that can be drawn upon as needed. HOME EQUITY LINES OF CREDIT
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