Liz Chapman

There are two major catagories of loans. One is government-backed loans which include FHA, VA, and CAL-VET loans. Any loan that is not a government-backed loan is a conventional loan. The majority of loans originated on one-to-four-unit properties are conventional loans.

Some of the advantages of conventional loans are:

1. Faster processing time                                        

2. No discounts (points)

3. Less red tape

4. Larger loan amounts

5. More lenders

6. Flexibility of portfolio lenders...Many portfolio lenders will make non-conforming loans.

There are many different lenders around and it can be confusing to those who haven't purchased property before. There are savings and loan associations, commercial banks, and mortgage lenders. One mortgage broker, Network Mortgage, works with several different lenders. This enables them to search out the best loan and rate for your particular needs.

If you are a veteran with a current Certificate of Eligibility, then you also have the option of getting a VA loan or a CAL Vet loan. These are two very different types of programs.

VA loans are made to qualified veterans for the purchase of property wherein the Department of Veteran's Affairs guarantees the lender the payment of the mortgage.

The CAL-VET program can fund farms, homes, and mobilehomes under a contract of sale arrangement. They will purchase the approved property, hold the deed and the buyer makes payments to the state agency. When the debt is paid in full, the property is then deeded to the buyer.

There are also many different types of loans available. There are fixed rate, adjustable rate, graduated payment adjustable rate, interest only, balloon payment and several other less used mortgage loan options.

Interest rates change daily and are will vary with different lenders. Even with the same lender, the interest rate will vary with different  amounts paid as a down payment.

It is best to talk with different lenders and find one that you are comfortable with. Decide just what type of loan suits your needs. As a buyer, you will be way ahead of the game if you get pre-qualified by a lender and know exactly what you can realisticly afford before you begin your search for property.

©2004 - LiznParadise.com. No part of this page may be copied in whole or in part by any means without the express written permission of the author, Liz Chapman.

CURRENT MORTGAGE RATES Interest Rate Watch 30 yr fixed: 6.03% 15 yr fixed: 5.62% 1 yr adj: 5.29% (U.S. Daily Averages)

Let me help you own a little bit of Paradise!