While government-backed loans, such FHA and VA loans, give lenders extra security and more flexible terms for borrowers, conventional loans—which the government does not insure—offer less protection to lenders. Knowing the variations will enable you to select the appropriate loan for your financial circumstances.
Adjustable-Rate vs. Fixed-Rate Mortgues (ARMs)
With fixed-rate mortgages, which have consistent monthly payments, budgeting is simpler. If you intend to move or refinance in a few years, ARMs usually have lower starting rates that change frequently and could be helpful.
Selecting the correct kind of mortgage will help you lay a strong basis for your financial future.
First-Time Buyers' Specialized Loan Alternatives
First-time homebuyers can access many specialty lending programs meant to make homeownership more possible. Many times with reduced down payment requirements and better terms, these loans help one more easily enter the property market.
