Home Loan Types

There are several loan options available if you have less a low credit score, our expert consultants will help you to determine which option is best for you based on your credit history and current financial situation.

The 80-20 (No Downpayment) Loan

The 80-20 or no down payment loan is a loan for borrowers who do not have or do not want to invest their cash in a single, up front deposit on a home loan. The borrower will essentially take out two loans: the first for 80% of the total mortgage cost with one lender and the second will be for the remaining 20% with a different lender. The borrower will also typically pay all of the closing costs associated with the loan. The advantage of this is that it enables the buyer to get into more home than they might have otherwise (where one bank might not want to risk lending you $100,000, they might lend you $80,000).

The VA Loan

This is a loan guarantee established by the Federal Government for those who have served in the U.S. Armed Forces. This loan type is easy for military and former-military members to obtain and can often be processed with no down payment as well. In order to receive one of these loans, active duty or retired military members should visit their local Veteran's Administration Office or contact them through their website.

The Adjustable Rate Mortgage (ARM)

Adjustable Rate Mortgages or ARMs, are mortgages that begin with an interest rate typically lower than current market average - sometimes significantly so - and after a specified period (usually 1 to 3 years), the interest rate on the loan will begin to fluctuate along with the market. If the interest rates in the market go up, the interest rate on your loan (and therefore the payment) will go up as well, if, as during the Credit Crisis, interest rates fall, so will your interest rate and payment as well. These loan types are generally easier to get than standard conventional loans and are often used to help establish or improve credit as a new home buyer obtains a low-interest loan and makes regular, on-time payments for the first year or two. Lenders will, when checking for the ability to repay a loan, look to see that your income to debt ratio is sufficient for paying back the loan at the initially offered, low-interest rate.