An FHA LOAN is a mortgage insured by the Federal Housing Administration. In order to protect the lender from a loss if the borrower fails to pay on the loan, borrowers with FHA loans pay for mortgage insurance. FHA loans are one of the easiest types of mortgage loans to qualify for, given they require a very low down payment and less-than-perfect credit.
A VA LOAN is a mortgage loan which is guaranteed by the U.S. Department of Veterans Affairs. The loan (issued by an approved lender) is offered to American Veterans and active military members, or their surviving spouses.
VA loans are a great option for military homebuyers, given the difficult requirements that often need to be met (standards of credit scores and down payment requirements).
A FIXED INTEREST RATE LOAN is a loan in which the interest rate will not change over the term of the loan, no matter what happens to the market. The last loan payment of the term with be the same amount as the first loan payment of the term.
An ADJUSTABLE INTEREST RATE LOAN (or variable interest rate loan) is a loan in which the borrower pays a certain interest rate (usually below market rate) for the first period of time, which is then later adjusted to the market rate for the remaining period.
A CONVENTIONAL LOAN (conforming loan) is a loan that is not insured or guaranteed by the federal government, like FHA or VA loans. A conventional mortgage loan conforms to the guidelines set by Fannie Mae and Freddie Mac.
A conventional loan can have either a fixed interest or adjustable interest rate. The maximum limit on the loan varies by state and county.
Refinancing is paying off the current loan with obtaining a new mortgage loan, in order to change the terms of the previous loan (reduce monthly payments, lower the interest rates, etc.).
The “Jumbo" loan is any loan over 417k and while most lenders require an in depth,
and sometimes 2 underwriters to sign off along with 2 appraisals that just add to costs,
US Mortgages only needs 1.
I want to thank each and every customer who has trusted and chosen US Mortgages for their home lending needs over the last 2 decades. Celebrating 20yrs is a success mark I take deep pride in... Sincerely David Shamansky