Other Mortgage Programs
1 year ARMAdjustable-Rate-Mortgages are popular if there is a reasonable degree of likelihood you will be keeping the loan for a shorter period of time. The interest rate and payment is "locked in" for the first twelve months at a very attractive rate, after which time it will adjust once a year , dependent on the current interest rates.
You are protected by an interest rate "Cap," which is a maximum increase to the interest rate of the loan over a given period of time. Normally the interest rate can increase 1-2% per year and 5-6% over the life of the loan.
VA LoansThese loans are guaranteed by the Veteran's Administration. They are only available to qualified US Veteran's. Borrowers in the VA program are eligible for most of the standard loan types described above.
FHA LoansFHA loans are available to qualified borrowers on their principal residence. FHA loans generally offer a low down payment and are assumable by another individual, subject to the approval of their credit.
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