Traditional Fixed rate loan – used if you feel loans interest will go up and you want to lock in a low interest rate that you will be able to get.
FHA – low down payment of 3.5 percent is positive, but the negatives are that they have higher standards and requirements than traditional loans do not.
If needing to do a low down payment most do an FHA loan or alternatively, a fixed-rate mortgage is most common.
Adjustable-rate mortgage (ARM) – used when you do not have a high or above-average credit score and you still want to be able to purchase a house. The downside is that the mortgage rates will be fluctuating throughout your loan and it is hard to run your numbers.
VA loans – There are certain stipulations if qualify based on how long you served in the military etc. Some benefits are 0 down payment, no PMI, lower interest rate, etc.
750 credit score is ideal to get favorable loans from mortgage companies.
