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Types of Loans

You should have in mind some of the things to look for in a mortgage loan. For example, some lenders offer mortgage loans backed by a federal agency such as the Federal Housing Administration (FHA loans) or the Department of Veterans Affairs (VA loans).

Here are some mortgage products you may want to consider:

Fixed-Rate Mortgages
Fixed-Rate Mortgages are the most popular type of mortgage. They offer an interest rate that will remain the same for as long as you have your loan. Stretching out your repayment term means your monthly mortgage payment will be less than it would be with a comparable shorter-term mortgage.

Adjustable-Rate Mortgages (ARMs)
Adjustable-Rate Mortgages (ARMs) offer an interest rate that adjusts periodically to keep it in line with changing market rates.

Low or No Down Payment
Low and No Down Payment options allow for as little as three percent down, or no down payment at all for borrowers with good credit but with minimal funds for a down payment. Some products come with no income restrictions for home buyers with good credit.

Construction-to-Permanent Mortgages
Construction-to-Permanent Mortgages are for those who want to build a home and buy the land upon which it will be built.

Special Financing Mortgages
Special Financing Mortgages were created for home buyers with special needs, such as low- and moderate-income people who have disabilities or who have family members with disabilities living with them.

Non-traditional Mortgages
Non-traditional mortgages were developed for those with less than perfect credit. If you don't have a credit history established, you may be able to use past utility bills, rental receipts, and other types of statements to show a lender that you pay your bills on time.

Aside from a nontraditional credit history, there are products available if you think your credit profile could be improved. For example, the Expanded Approval with Timely Payment Rewards is a product that provides homeowners with a reduction in their interest rate after 24 consecutive months of “timely payments” within the first four years of the loan.

Employer-Assisted Housing Mortgages
Employer-Assisted Housing are programs offered by some employers. The EAH loan is commonly used toward your down payment, closing costs, and interest rate buydowns, which can help lower your monthly mortgage payment.

Government Mortgages: FHA, VA, and RHS
If you qualify, you may consider government loans as a way to finance your dream of homeownership. Agencies that offer such loans are the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and Rural Housing Services (RHS).

To get one of these loans, you apply through a lender that is approved to offer them. The property being purchased must meet certain criteria.

There are also state and local housing agencies that make funding available to home buyers. More information about these types of loans is available through your state housing authority.


Fixed-Rate Mortgages

Adjustable-Rate Mortgages

Low or No Down Payment


Special Financing Mortgages

Non-traditional Mortgages

Employer-Assisted Housing

Government Mortgages:
FHA, VA, and RHS

FPL BuildSmart
Fair Housing Policy