25. Mortgage Loan types
Conventional - These are the most common type of loan. Most of the discussion
in this tutorial pertains to conventional loans.
FMHA (Farmers Home Insured Mortgages) - These loans are targeted for low and
moderate income families in rural areas.
FHA (Federal Housing Administration) These are federally backed mortgage
loans designed for lower income areas.
VA (Veterans Administration) loans - These are federally backed mortgage loans
designed for military veterans.
FHA, VA and FHA mortgages usually feature low down payments, low interest
rates, few points and relaxed income to debt ratios for qualification purposes. In
additions, some of these loans are assumable, which means they can be passed on to a new
purchaser of the property.