Types of Home Loans and their Explanations
As your Texas Mortgage Company, we offer many different types of home loans, but all you really need to know is whether you want to purchase or refinance and one of our Home Loan Brokers will work with you to put together a customized Texas home loan that is best for you.
You'll spend more on your mortgage than you ever will on your house. Your home loan could be the biggest purchase you ever make. It makes sense to choose it carefully, we will help you with all the details, but we want you to be informed as to your choices.
Here is information about the different types of loans:
The major loan categories are conventional and government. Conventional loans can be further categorized into conforming and non-conforming.
Conforming Loans
A conforming loan adheres to the guidelines established by Fannie Mae or Freddie Mac. These guidelines establish maximum loan amounts, down payment, credit and income requirements and acceptable property types. Lenders that make loans according to these guidelines may sell them to Fannie Mae or Freddie Mac. Conforming loans make up the majority of loans in the U.S.
Non-conforming Loans
Loans that do not conform to the guidelines established by Fannie Mae or Freddie Mac are called non-conforming loans. A loan that is larger than the conforming loan limit is called a Jumbo loan. Loans that do not meet the credit quality of conforming loans ('A' paper) are referred to as 'A-' through 'D' paper loans, or subprime loans.
Government Loans
FHA and VA loans are the two most popular types of Government loans. Government loans have different loan limits and qualifying criteria compared to conventional loans.
We can help you get the Texas Home Loan that is best for you, ask us about:
- Bad Credit Loans
- No Income Verification Loans
- 100% Financing
- Fixed Rate Loans
- Adjustable Rate Mortgages (ARM)
- Low Down Payment Loans
Which is best for you? Our expert Loan Officers can help. Contact us to get started.
The information contained herein is intended for general information
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