Conventional Mortgages Conventional Mortgages are not insured or guaranteed by the federal government. They are the most popular type of loan used to purchase or refinance a single-family home. To qualify for a Conventional Mortgage, you typically need a minimum down payment of 5% of the home purchase price (typically requiring mortgage insurance.) If you have a down payment of 20% or more, you will not need to pay the additional expense of mortgage insurance. Conventional Mortgages usually meet Fannie Mae/Freddie Mac approval guidelines. Choose from terms of 10, 12, 15, 20, 25 or 30 years fixed rate.
FHA Mortgage FHA mortgages are designed to help low-to-moderate income homebuyers purchase a home. They offer the advantages of a low down payment and more flexible guidelines for qualification. FHA loans are insured by the Federal Housing Authority. The FHA also sets limits on how much you can borrow, depending on the area. Choose from terms of 15, 20, 25, or 30 years fixed rate.
ARM (5/6mos ARM, 7/6mos ARM, 10/6mos ARM)
These increasingly popular ARMs — also called 5/6mos, 7/6mos, or 10/6mos — can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable-rate loans. For example, a "5/6mos loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
SONYMA Mortgage Loan
State of New York Mortgage Agency (SONYMA) Mortgages offer lower interest, fixed-rate loans that make home ownership possible for first-time buyers and veterans. Financing is available for one-to-four family dwellings and buyers can take advantage of a down payment assistance loan to help lower monthly payments.
J umbo Mortgage Loans
Jumbo Mortgage Loans or non-conforming loans facilitate financing for homes in higher price ranges where loan amounts are necessary that exceed conforming limits set by the Federal Housing Finance Agency (FHFA).
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