| Home buying is one of the most important decisions an | | | | persons living in small towns and rural areas and have |
| individual or a couple can make. It is quite possibly the | | | | low to moderate incomes. There is one hundred |
| largest purchase an individual or family will ever make, | | | | percent financing with a thirty year term. In addition to |
| thus, it is important to approach the funding of the | | | | the Rural Housing Loans, there are also Affordable |
| purchase with great caution. Determining the type of | | | | Housing Program Loans and Housing Finance Agency |
| mortgage that is right for you can be tricky. It starts | | | | Programs for home buyers to choose from. |
| with the basic knowledge of the different types of | | | | The final major type of loan available to home buyers |
| loans out there, including FHA Loans, VA Loans, Rural | | | | is the conventional loan. This loan is not insured by the |
| Housing Loans, and many other types of loans. | | | | government, but rather insurance companies. The loan |
| Two very important and frequently used types of | | | | allows up to ninety percent of the purchase price to |
| loans are FHA Loans and VA Loans. FHA loans are | | | | be financed. Conventional loans can be either |
| considered a government mortgage and are insured | | | | fixed-rate loans or adjustable rate mortgage. In a fixed |
| by the Federal Housing Administration. These loans | | | | rate mortgage, the interest rate of the loan is |
| mandate that the buyer put at least three percent of | | | | maintained over the length of payment, hence the title. |
| the sales price down as a down payment. VA loans | | | | Adjustable rate mortgages may start off with a lower |
| are reserved to those individuals who have met | | | | rate, but as interest rates rise, so to will your monthly |
| specific time requirements in the military. There is | | | | payments rise. The ARM mortgage is often used in |
| typically on down payment and loans may equate 100 | | | | situations where income is low at first but is expected |
| percent of the value of the property. | | | | to go up. |
| Rural Housing Loans are also an option for families and | | | | |