Home Purchase Loans: Overview Of Loans To Help You Purchase A House

• Fixed interest rate

• Payments remain the same over the life of the loan

• You plan to stay in your home for an indefinite period and want stability of the same payment each month

• Want a fixed rate and payments that never change

• Adjustable interest rate that varies according to a financial index

• Rate increases when the index moves up or decreases when the index drops

• Includes a rate cap to limit the amount that interest and payments may change

• You plan to stay in your home or keep your loan for a short period of time

• Want lower starting interest rate and payment

• Combines popular features of fixed and adjustable rate mortgages

• Offers a fixed rate and payment for initial 1, 3, 5, 7 or 10 years, depending on the loan program chosen

• After the fixed period, the interest rate and payment becomes adjustable

• Plan to live in your home for a relatively short period and want a low starting interest rate and payment during the fixed period

NOTE: Non-Conforming loan limit is affected by Temporary Adjusted Conforming Limits – up to $729,750 in select areas (available until December 31, 2008).The actual new conforming limit for any given area is based on a percentage of the area median sales price for the Metropolitan Statistical Area (MSA) in which a specific property is located. Although the new limit of $729,750 is only available in certain high-cost areas of the country, many MSAs across the nation saw temporary increases to the conforming loan limit over the “current” limit of $417,000. Product guidelines and pricing for home loan applications under temporary "jumbo conforming" loan limit increases differ from lending parameters for home loans under traditional conforming amounts.

• Typically have higher interest rates

• Different requirements for down payment than conforming loans

• Help first-time buyers purchase homes

• Offer low down payments

• Provide more flexible lending guidelines

• Eliminates Private Mortgage Insurance (PMI) since the loan is insured by FHA

• Helps qualified veterans, reservists and active-duty service members purchase homes

• Offers reduced down payment and flexible requirements to qualify

• Eliminates PMI since VA insures the loan