Types of Mortgage Loans
There are lots of different types of mortgage loans available for the home buyer. There are government financing options and conventional mortgages and other special financing for first time home buyers or for low to moderate income home buyers.It is very important for home buyers to understand their mortgage options, financing terminology and how to locate a mortgage professional. Mortgage sources include banks, credit unions, mortgage brokers and mortgage bankers. See the section on Financing Terminology for a more detailed discussion on the differences between these various sources. Much of the subprime mortgage mess was due to a handful of mortgage originators who made loans to people who couldn't afford it, or who could qualify for less expensive mortgages but were placed into high interest mortgages. Or in some circumstances, some of these mortgage originators fudged documents so people would qualify on paper when in reality they didn't. Mortgage originators will need to meet special state standards that are being implemented to meet or exceed recent federal standards under the SAFE ACT, starting in 2010 in an attempt to further protect home borrowers from unscrupulous lending. In the section, "Government Loans", we will discuss various government financing options such as the FHA loan and FHA mortgage, VA (for Veterans) loan, low interest mortgages. In the section, "Loan Modification", we discuss the various options for home owners to refinance or modify the terms of their mortgage including the federal government's various loan modification programs as well as scams to watch out for. In the section, "No Money Down Home Buying" we discuss the concept of buying a home with no money down. Although a real challenge to do, there are ways to buy a home with very little if any of your own money. We will cover other financing options in the section, "Other Types of Mortgage". This discussion includes "conventional" financing, buy-downs, fixed rate vs adjustable rate mortgages, points and more. One last section, "Financing Terminology" will cover definitions of various financing and mortgage terminology so you better understand such terms.
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