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| Conventional 30-Year Fixed |
| Conventional 15-Year Fixed |
| Adjustable Rate Mortgage |
| FHA |
| USDA Rural Housing |
| VA |
| No Documentation |
| Home Equity Line of Credit |
| Balloon Mortgages |
| Imperfect Credit Programs |
Rates last updated on Wednesday, January 04, 2006
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Conventional 30-Year Fixed
This type of financing is the most widely used. Down payments range from 0% -20% or more. Employment requirements are looked at from a stability factor. You can be new to a job as long as you have a stable employment history. Interest rates on these loans are some of the lowest available.
Term: 30 years
Maximum Amount: $417,000
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Conventional 15-Year Fixed
This type of financing is the most widely used. Down payments range from 0% - 20% or more. Employment requirements are looked at from a stability factor. You can be new to a job as long as you have a stable employment history. Interest rates on these loans are some of the lowest available.
Term: 15 years
Maximum Amount: $417,000
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Adjustable Rate Mortgage
This type of loan offers a fixed rate for a certain amount of time, normally 1 to 10 years and than converts to an adjustable rate. This loan offers a lower initial monthly payment and can also help you qualify for a higher loan amount. This loan is ideal for homebuyers that do not expect to stay in the home for longer than the fixed rate period of their ARM mortgage.
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FHA
The Federal Housing Administration through HUD allows for homebuyers to buy a home with just 2.25% of a down payment. Along with the low down payment, FHA is very flexible on credit.
Maximum Amount: $204,750
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USDA Rural Housing
This type of financing is ideal for the homebuyer who is looking for no cash out of pocket. This no down payment program is for individuals who have not owned a home in the last three years, meet certain income requirements, have a good job history and have good credit. Interest rates are slightly higher than FHA rates, however there is no PMI to pay monthly, which makes the monthly payment lower. There are also property area restrictions.
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VA
The Veterans Administration offers this financing for military personnel who can obtain a certificate of eligibility. There is no down payment required and the seller can pay all closing costs. There is no mortgage insurance on this type of loan. Interest rates are slightly higher than FHA financing.
Maximum Amount: $417,000
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No Documentation
This type of loan is ideal for self-employed borrowers as well as any homebuyer that is unable to prove enough income. No Doc loans rely heavily on the homebuyer's credit rating. This type of financing has opened the door for many that would have been turned down for traditional financing.
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Home Equity Line of Credit
With a line of credit you only borrow what you need and you only pay interest on what you borrow. This type of financing offers very flexible access to your funds. Rates can change and the maximum interest rate is typically higher than a regular mortgage.
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Balloon Mortgages
Balloon mortgages are ideal if you know you will only be in the home for a short time. They feature a lower interest rate and monthly payment. Many balloon mortgages offer the option to convert to a fixed loan after the initial term. The risk to this type of mortgage is the possibility of rates being higher at the end of the initial period.
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Imperfect Credit Programs
Homebuyers have the potential to reestablish their credit. When used for debt consolidation, this type of financing may reduce the over-all monthly payment. This type of financing can help when all else has failed. Used responsibly, borrowers can refinance into a conventional loan within 1-2 years. Homebuyers will pay a higher rate and in most cases will have a prepayment penalty.
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