Mortgage Loans

                                          3 Popular types of home loans

The loans that you take out in order to pay for your home or any property that you buy are called home loans or mortgage loans. The house or land that you buy with that loan is treated as collateral against the loan. This means that if you default on the mortgage payments, then your home can be confiscated by your lender in order to recover the loan. There are various types of mortgage loans. Some of the most popular ones are as follows.

1. FHA loans : These types of home loans are insured by the government by providing mortgage insurance. This insurance is funded into the loan. In case of such a loan, the down payment that you need to make is very low. Another advantage for you is that the FICO scores will not matter when it comes to be eligible for these loans. Thus, if you are a first time buyer, then you must opt for this type of home loan.

2. VA loans : This form of loan is only for those who have served The US armed forces or for the spouses of the veterans who have died serving the armed forces. The eligibility or the requirements are dependent on the discharge, whether it was honorable or dishonorable. One of the most important advantages of this sort of a home loan is the fact that no down payment needs to be made.

3. Interest only loans : Although the name suggests so but the interest only mortgage is not a home loan that does not require you to pay your interests on the loan. Rather these home loans have an option that you can choose and make payments only towards the interest. However, you should know that such facilities are available for you only for a fixed period of time.

These are a few popular types of home loans. You can opt for any one as per your requirements and the eligibility criteria.