Adjustable-rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.
A fixed-rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term, may be extended, or may roll over into another type of loan.
Buy-down loans are fixed-rate loans where the interest rate and the payment are reduced for a specific period of time by passing 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 to 5 percent), no cash, no cashreserve requirement, and easier qualifying ratios. Qualification is subject to borrower meeting income limits and attendance of a four-hour training course on homeownership.
Conventional loans are sometimes more lenient with the appraisal and condition of the property. When you are buying a “fixer-upper” you may need to use a conventional loan.
FHA loans are insured by the Federal Housing Administration under the Department of Housing and Urban Development. They offer a low down payment and are easier to qualify for than conventional loans.
A fixed-rate loan has one 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 then increases by a predetermined amount each year for a set number of years.
Mortgage Credit Certificate
A first-time homebuyer program is subject to purchase price and income limits in some areas. It is actually a special tax credit and assists the buyer in qualifying for many loan programs.
Nonqualifying Loan (Assumable)
Nonqualifying loans are pre-existing loans that can be assumed by a buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.
VA loans are guaranteed by the Department of Veterans Affairs. A veteran must have served 180 days of active service. The maximum VA loan in San Mateo County is currently $636,150 with no down payment.