| In this article, we discuss the top ten mortgage | | | | and also they have totally zero down payments with |
| programs which contain a) Conventional and | | | | absolutely low closing costs. |
| Government Loans and b) Fixed Rate Loans, | | | | Veteran Affairs Loans: VA Loans are guaranteed by |
| Adjustable Rate Loans and the various combination | | | | the U. S. Dept of Veterans Affairs to the veterans and |
| loans. | | | | service persons to make it effortless for them to get |
| Fixed Rate Mortgages: The interest rate and the | | | | home loans with appropriate rates and terms. |
| monthly mortgage installment are kept fixed for FRM | | | | Conforming Loans: The traditional loans are either of |
| and these could be availed for a period between ten | | | | the conforming or non-conforming variety. The one in |
| to forty years (10, 15, 25, 30, 40 years). | | | | which the terms and conditions conform to the |
| Adjustable Rate Mortgage: For an ARM, the interest | | | | guidelines prescribed by Fannie Mae and Freddie Mac |
| rate and monthly installments vary over the tenure of | | | | is known as a conforming loan. The mortgage loans |
| the loan. Basically it varies on the basis of the | | | | which comply with their guidelines are bought by these |
| movements in few set indexes. | | | | institutions and are sold to the same as securities to |
| Federal Housing Administration Loan: It's a component | | | | investors thus giving a continuous flow of money. |
| of the U.S. Department of Housing and Urban | | | | Jumbo Loans: Fannie Mae and Freddie Mac institutions |
| Development and they have negligible payments so | | | | have kept a highest loan limit so if a loan is taken over |
| one can quite easily get these loans. | | | | and above this limit, then it will carry a higher rate of |
| State housing programs and Local Housing Programs: | | | | interest than the conforming loans. |
| These are offered by various states and counties | | | | B/C Loans: Those that match the borrower credit |
| having minimal or medium rates of interest. | | | | requirements stated by Fannie Mae and Freddie Mac |
| Rural Housing Service Loan Programs: The RHS is a | | | | are termed as 'A' loans while those that do not satisfy |
| component of the U.S. Dept of Agriculture that | | | | this criterion are tagged as 'B', 'C' or 'D'. |
| guarantees the loans taken by rural residents of US | | | | |