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What are the Major Types of Home Loans?

There are several general types of loans in the US.  They are:

  1. Veterans Administration Home Loans – Some US Military Veterans can get a home loan guaranteed by the US Government. The VA Loan Guaranty Service is the organization within the Veterans Benefits Administration that has the responsibility of administering the home loan program.  These loans are made by approved, private lenders. They have lower interest and are easier to get.
  2. Federal Housing Administration Loans –  These are called FHA Loans.  FHA loan programs offer lower down payments and are a good option for first-time home buyers!  You must qualify for FHA loans.  They are oriented toward getting lower income families into affordable mortgages.  FHA loans are guaranteed by the U.S. Department of Housing and Urban Development (HUD) and are actually made by approved, private lenders… more…
  3. USDA Loans – These are loans that are actually available in certain rural areas.  They are also called farm loans.  They are very nice because it is easy to qualify there is very low or no down payment required.  Contrary to what you might think you don’t need to be buying a farm… You just need to be buying a home in a designated rural area.
  4. Conventional Loans – These are offered by private lenders.  They are not insured by the federal government but may be insured by private mortgage insurance.

There are also a few others but these are the “heavy hitters.”

Most people that I have known get Conventional Mortgage Loans or FHA Loans.

You can choose from among the the major types of home loans to select what is right for you!