Types Of Loans For Mortgage



Beside various mortgage loans stated at previous page, there are more types of loans available in the loan market. Take a look at he following options, they might be the one you are looking for :-

1) Government loans - this option is guaranteed by the federal agencies such veteran, state housing authority, federal housing administration and etc. However, the option contain income, purchase price or other eligibility requirements. Mostly are for government servants.

2) The Adjustable Rate Mortgage (ARM) - the interest rate of this option is variable, it subject to change for every 6 months, 1 year, 3 years, 5 year or 10 years. Depend which option choose by borrower. The new rate is based upon fluctuations in an index (normally the One Year Treasury Security) and is calculated by adding a specified amount to the index.

3) Construction loan - use to finance the construction of a home, the loan might not included the price of the land but purely the construction costs only. This option has a series of disbursements according to the construction schedule. The terms and conditions of this option is vary among lenders, if you considered this financial assistance for your house, you should gather more information to study and understand how it works before getting it.

4) Land loans - this loan is solely involves in land before the structure of the home built.

5) The Bridging Loan - when a borrower who planned to using the money from the sale of current property to buy a new property, after bought of the new property but the current property haven't sold or yet to receive fund from new buyer. Borrower will get a special financial assistance so called "Bridging Loan" to pay for the new property (may be as deposit / down payment). This option is served for short period only (3 to 6 months), most of them are features adjustable rates ties to index.

For more loan information and services, please take a look at Various Loan Services instead of types of loans for mortgage

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