Types of Loans
Types of mortgage
Pros
Cons
Fixed- rate mortgage
No surprise the interest rate stays
the same over the entire term,
usually 15,20,or 30 years
Usually offers a lower initial rate
of interest than fixed- rate loans.
If interest rates fall, you could be
stuck paying the higher rate.
Adjustable- rate (ARM) or
variable-rate mortgage
FHA (Federal Housing
Administration) loan
Allows buyers who may not
qualify for a home loan to
obtain one low down payment.
VA loan
Guaranteed loan for eligible
veterans, active duty personnel
and surviving spouses Offers
competitive rate, low or no down
payments.
Usually a fixed rate loan with
relatively low payments for a
fixed period.
Ballon mortgage
Convential
A loan secured by investors, but
neither insured by the FHA nor
guaranteed by VA. Both fixed
rate and adjustable rate loans are
available with conventional
financing.
FHA Back to Work
Extenuating Circumstances” if
you have had foreclosure’ short
sale, deed-in-lieu of foreclosure,
or have declared bankruptcy you
may qualify for a new home loan
if you are back to work and can
document the extenuating
circumstances
Calvet
If you are a veteran and want a
great loan, then you need a
CalVet Home Loan. You’ll find
the CalVet loan will save you
money and provide protection for
your home and investment.
Calvet has expanded eligibility
so that most veterans (including
those now on active duty)
wanting to buy a home in
California are eligible, subject to
After an initial period, rates
fluctuate over the life of the loan
when interest rates rise, generally
so do your loan payments
The size of your loan may be
limited
The size of your loan may be
limited
After an initial period, the entire
balance of the loan is due
immediately this type of loan
may be risky for some
financial qualification and
available bond funds (See
restrictions for peacetime- era
Veterans)