If you are thinking of buying a home, you might need to finance it. Home mortgage helps you in realizing your dream of owning your home. However, you need to have a relatively good credit in order to get the required home loan or home mortgage so that you can buy your dream home. There are various kinds of home loans available as per the requirements of the consumer.



Different home mortgage types

Different major types of home mortgage available are:

1. Government loans - The government home mortgage is that which is insured by the government and generally has low interest rates in comparison to the conventional loans. Types of government home loans available are:

FHA loans - FHA home loans are fixed rate mortgages insured by the government. FHA loan terms generally range from 10 to 30 years. These home loans are even available for those who have low or fairly low credit score and for those people who cannot even make larger down payments. Another important thing about FHA loans is that you can get it at relatively low interest rates in comparison to the conventional ones.
      
VA Loans - VA loans are provided mainly for those veterans who had worked with U.S. Armed Services and are also available for the spouses of the deceased veterans too. The requirements or the eligibility to get these loans vary according to the years the veterans have served in the U.S. Armed Services and also whether or not the final discharge from the service was honorable. The main benefit of VA home loans is that it does not require you to make any down payments. VA loans are generally guaranteed by Department of Veteran Affairs, but are mainly funded by the conventional lenders.

2. Conventional loans - The conventional home loans are those which are offered by the private lenders like the banks and the other lending institutions. Types of conventional loans:

Fixed rate mortgage - In case of fixed rate mortgages the interest rate remains fixed throughout the loan term. The interest rate on 30 year mortgage is lower than that of the 15-year mortgage. Fixed rate mortgage types:

  30 year fixed rate mortgage

  15 year fixed rate mortgage

Adjustable-rate mortgage - In case of ARMs, the interest rate varies as the years pass. The rate initially remains low and increases with time. The rates can also vary as per the market index. Types of ARMs: