Types of Loans

Buyer Consultation


Adjustable Rate Mortgage

Adjustable Rate Mortgages (ARMs) have an interest rate that is adjustable at certain intervals based on a specific index during the life of loan.

Balloon Payment Loan

A fixed rate loan that is amortized over a specified number of years but becomes due and payable at the end of an earlier specified time.  This may be extendable or may roll over into a different type of loan at that time.


Buy-Down Loan

Fixed rate loans may have an interest rate and payment that are reduced for a specific period of time by paying the interest up front to subsidize the lower payment.

Community Homebuyer’s Program

A fixed rate loan for first time homebuyers with a low down payment, usually 3% – 5%.  No cash reserve requirement and easier qualifying ratios.  This is subject to borrower meeting income limits and attendance of a four-hour training course on home ownership.

Conventional Loan

Conventional loans are sometimes more lenient with the appraisal and condition of the property.  Conventional loans are not government insured and usually have higher down payment requirements.

FHA Loan

A fixed rate loan has a set interest rate that remains constant throughout the life of the loan.

Graduated Payment Mortgage

A fixed rate loan that has payments starting lower than a standard fixed rate loan, which are increased by a predetermined amount each year for a set number of years.

Non-Qualifying Loan

Also known as Assumable Loans – Pre-existing loans that can be assumed by the buyer without a qualifying process.  The buyer pays the seller for their equity and then continues making payments on the existing loan.

VA Loans

VA Loans are guaranteed by the Veterans Administration.  Typically, a veteran must have served 180 days of active service to qualify.