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Loan Programs Fixed Rate Mortgages The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. FHA Mortages An FHA loan allows you to buy a house with as little as 3% down, instead of the higher percentages required to secure many conventional loans. Taking advantage of the FHA loan program is a great way for first time buyers, or anyone with a shortage of down payment funds, to buy a home. VA Mortgages The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families. VA loans are available to eligible veterans for the purchase of a home, which must be for their own personal occupancy. Adjustable Rate Mortgages (ARM) Adjustable rate mortgages (ARM) are loans whose interest rate can vary during the loan's term. These loans usually have a fixed interest rate for an initial period of time and then can adjust based on current market conditions. Hybrid ARMS (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM) Hybrid ARM mortgages also called fixed period ARMS, combine features of both fixed rate and adjustable rate mortgages. Interest Only Mortgages A mortgage is called "interest only" when its monthly payment does not include the repayment of principal for a certain period of time. Balloon Mortgages Balloon mortgages have a note rate that is fixed for an initial period of time, and then the remaining principal balance is due at the end of the term. Reverse Mortgages Reverse mortgage is a type of home equity loan for senior citizens that allows you to convert some of the equity in your home into cash while you retain home ownership. Best of all, there is never any payments with reverse mortgages! What kind of loan program is best for you? Contact an American Heartland Mortgage loan officer to find a loan program that best suits your needs.
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