What types of mortgage loans are available?

There are many types of mortgages available to home buyers.

  • Conventional mortgages
  • FHA Mortgage
  • VA Loan
  • USDA Rural Housing Loan
  • Adjustable Rate Mortgage (ARM)
  • 203k Rehab Loan

For many people in Lawrence County, conventional mortgages and FHA mortgages are the two most common loan types. The simple difference between the two is that conventional mortgages are not insured or guaranteed by the United States government.

For more information or to apply, please contact OwnersChoice Funding 1-800-342-4998 or visit the OwnersChoice website.

Mortgage types break down even further

There are two different types of rates that mortgage loans are divided into. These types are based on the rates used during the payment terms.

A fixed-rate mortgage is a mortgage where the rate on the loan repayments do not change, and by extension, the loan payment each month does not change. The terms of the mortgage does not create any scaling or alterations of repayments.

An adjustable rate mortgage (ARM) have an interest rate that will adjust from time to time. Typically, the rate on an ARM will change year to year.

There is also an extension of the ARM, which merges the two. A hybrid ARM mortgage (a version of an ARM), will start off as a fixed payment, and then start adjusting.

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