Popular Types of Las Vegas Mortgage Loans

Fixed-Rate Mortgage Types

FHA Loans

FHA
mortgage loan types are insured by the government through mortgage
insurance that is funded into the loan. First-time home buyers are ideal
candidates for an FHA loan because the down payment requirements are
minimal and FICO scores do not matter.

VA Loans

This
type of government loan is available to veterans who have served in the
U.S. Armed Services and, in certain cases, to spouses of deceased
veterans. The requirements vary depending on the year of service and
whether the discharge was honorable or dishonorable. The main benefit to
a VA loan is the borrower does not need a down payment. The loan is
guaranteed by the Veterans Administration, but funded by a conventional
lender.

Interest-Only Mortgage Types

Calling
a mortgage loan type an “interest-only mortgage” is a bit misleading
because these loans are not really interest only, meaning the borrower
pays only interest on the loan. Interest-only loans contain an option to
make an interest-only payment. The option is available only for a
certain period of time. However, some junior mortgages are indeed
interest only and require a balloon payment, consisting of the original
loan balance at maturity.

Hybrid Types of Mortgage Loans

Option ARM Mortgage Types

Option
ARM loans are complicated. They are adjustable-rate mortgages, meaning
the interest rate fluctuates periodically. Like the name implies,
borrowers can choose from a variety of payment options and index rates.
But beware of the minimum payment option, which can result in negative
amortization.

Combo / Piggyback Mortgage Loan Types

This
type of mortgage financing consists of two loans: a first mortgage and a
second mortgage. The mortgages can be adjustable-rate mortgages or
fixed-rate or a combination of the two. Borrowers take out two loans
when the down payment is less than 20% to avoid paying private mortgage
insurance.

Adjustable-Rate Mortgage Types

Adjustable-rate
mortgages (ARMs) come in many flavors, colors and sizes. The interest
rate fluctuates. It can move up or down monthly, semi-annually, annually
or remain

Mortgage Buydowns

Borrowers
who want to pay a lower interest rate initially often opt for mortgage
buydowns. The interest rate is reduced because fees are paid to lower
the rate, which is why it’s called a buydown. Buyers, sellers or lenders
can buy down the interest rate for the borrower.

Specialty Mortgage Loan Types

Streamlined-K Mortgage Loans

Like
the 203K loan program, FHA has another program that provides funds to a
borrower to fix-up a home by rolling the funds into one loan. The
dollar limits for repair work are lower on a Streamlined-K loan, but it
requires less paperwork and is easier to obtain than a 203K.

Bridge / Swing Loans

These
types of mortgage loans are used when a seller has put a home on the
market but it has not yet sold and the seller wants to borrow equity to
buy another home. The seller’s existing home is used as security for a
bridge (also called swing) loan.

Equity Mortgage Loan Types

Equity
loans are second in position and junior to the existing first mortgage.
Borrowers take out equity loans to receive cash. The loans can be
adjustable, fixed or a line of credit from which the borrower can draw
funds as needed.

Reverse Mortgages

Reverse
mortgage are available to any person over the age of 62 who has enough
equity. Instead of making monthly payments to the lender, the lender
makes monthly payments to the borrower for as long as the borrower
resides in the home. The interest rate can be fixed or adjustable.

Visit
our Las
Vegas Mortgage Loans resource center to find out more
about qualifying for Las Vegas Mortgage Loans, Home Loan Options and to
find a Las Vegas Home Loan Consultant.