A home loan for individuals who have steady income, good credit and have funds available for a down payment. This requires a 3-20% down payment.

A conventional loan is not insured by the federal government (like USDA, FHA and VA loans) and can be the preferred route to home financing for many homebuyers and those purchasing investment property.

Alliance Mortgage Group in Houston, Texas reviews your debt/income ratios and monthly housing costs as well as your credit scores, credit history and income over the past several years.

FHA loans originate from the Federal Housing Administration and are insured by HUD (US Dept. of Housing) so that lenders can offer more affordable mortgage rates. FHA loans require lower down payments and closing costs. There are even options for financing 100% of the loan, and several grant programs that provide FHA loan customers financing for the down payment.

FHA loans offer options to those who’ve undergone bankruptcy or foreclosure. They’re available to first time homebuyers, refinancers and anyone who’s purchasing property and doesn’t already have an existing FHA loan. The guidelines for debt ratio and job qualifications are more lenient than a conventional loan.

Also known as rural development loans, are loans issued by the US government to help families who may not quality for conventional loans.  The US government issues these loans through approved private lenders. A family can borrow up to 100% of the home’s appraisal, meaning no down payment is needed. The loan is set for a 30-year fixed rate home loan, and requires no mortgage insurance.

USDA eligibility is based on a combination of household size and geography, in addition to the typical mortgage approval standards such as income and credit score verification.

A loan program established by the United States Department of Veterans Affairs. VA loans assist service members, veterans and eligible surviving spouses to become homeowners. The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan.

The VA will guarantee a maximum of 25 percent of a home loan amount up to $113,275, which limits the maximum loan amount to $453,100. A veteran must meet both service requirements and credit/income requirements to be eligible.

With interest rates reaching record lows, you may be wondering if refinancing your mortgage is right for you.  While refinancing your mortgage may seem like a great opportunity for you to lower your monthly mortgage payments and reduce your debt, make sure to use a mortgage calculator and calculate if refinancing your mortgage will actually save you in the long run.

Refinancing your mortgage should be done to reduce your interest rate, shorten your term, or consolidate any revolving debt.