A home purchase using a mortgage loan is one of the most important decisions any individual or will have to couple make. It is by far one of the biggest purchases, if not the biggest an individual or family will ever make, thus, it is extremely important to research and approach the home loan financing portion of the purchase with excellent care. Determining the type of home loan that is right for you can sometimes be the most challenging part of this. It begins with the basic and standard knowledge of the various kinds of home loans available out in the marketplace, this includes everything from FHA Loans, to VA Loans, Jumbo Loans, Rural Housing Loans, and a plethora of other types and kinds of loans.

Two of the most crucial and frequently utilized types of home loans are FHA Loans and VA Loans.

FHA loans are considered a federal government home mortgage and are insured by the Federal Housing Administration. These home loans mandate that the buyer put at least three percent of the prices down as a deposit and or down payment.

VA loans are reserved for those people who have actually fulfilled their specific active duty requirements in the United States military. These loans may not require any deposit and are usually home loans that correspond to 100 percent of the home value.

Jumbo Loans are loans which have a higher value due to the homes price and the starting limit is set on a yearly basis. These loans usually carry higher interest rates and also higher deposits, in most cases starting at twenty percent of the home value.

Rural Housing Loans are likewise an option for individuals and families residing in small towns and remote areas and they have low to moderate earning requirements. There is usually 100 percent financing with thirty year terms.

In addition to the Rural Housing Loans, there are likewise Affordable Housing Program Loans and Housing Finance Agency Programs for house purchasers to choose from.

The last major type of loan readily available to home purchasers is the traditional and or conventional loan. Conventional loans can be either fixed rate home loans or adjustable rate home mortgages. In a fixed rate mortgage loan, the interest rate of the home loan is preserved over the entire term of the loan.

Do your research and ask as many questions as possible to make sure you can be happy and be comfortable with your home loan decision!