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All 14 guides. Financial Services Limited. Registered in England and Wales No. Your home may be repossessed if you do not keep up repayments on your mortgage.

Mortgage Advisers. The conforming mortgage loan limit for a one-unit property in Jumbo loans are the most common type of non-conforming loans. Borrowers can put down as little as 3. FHA loans have more-relaxed credit-score requirements than conventional loans. There is one drawback to FHA loans. Department of Veterans Affairs guarantees mortgages for qualified service members that require no down payment. Department of Veterans Affairs VA guarantees home buyer loans for qualified military service members, veterans, and their spouses.

Other benefits include fewer closing costs which may be paid by the seller , better interest rates, and no need for PMI or MIP. VA loans do require a funding fee, a percentage of the loan amount that helps offset the cost to taxpayers. The funding fee varies depending on your military service category and loan amount.

The following service members do not have to pay the funding fee:. VA loans are best for eligible active military personnel or veterans and their spouses who want highly competitive terms and a mortgage product tailored to their financial needs.

Department of Agriculture USDA guarantees loans to help make homeownership possible for low-income buyers in rural areas nationwide.

Mortgage terms, including the length of repayment , are a key factor in how a lender prices your loan and your interest rate. Fixed-rate loans are what they sound like: A set interest rate for the life of the loan, usually from 10 to 30 years. If you want to pay off your home faster and can afford a higher monthly payment, a shorter-term fixed-rate loan say 15 or 20 years helps you shave off time and interest payments.

You'll also build equity in your home much faster. Opting for a shorter fixed-term mortgage means monthly payments will be higher than with a longer-term loan. Crunch the numbers to ensure your budget can handle the higher payments.

You may also wish to factor in other goals, such as saving for retirement or an emergency fund. Fixed-rate loans are ideal for buyers who plan to stay put for many years. A year fixed loan might give you wiggle room to meet other financial needs. However, if you have the appetite for a little risk and the resources and discipline to pay your mortgage off faster, a year fixed loan can save you considerably on interest and cut your repayment period in half.

Adjustable-rate mortgages are riskier than fixed-rate ones but can make sense if you plan to sell the house or refinance the mortgage in the near term. Adjustable-rate mortgages ARMs have a fixed rate for an initial period of up to 10 years, but after that period expires the rate fluctuates with market conditions.

Some ARM products have a rate cap specifying that your monthly mortgage payment cannot exceed a certain amount. If so, crunch the numbers to ensure that you can potentially handle any payment increases up to that point. Don't count on being able to sell your home or refinance your mortgage before your ARM resets because market conditions—and your finances—could change. ARMs are a solid option if you don't plan to stay in a home beyond the initial fixed-rate period or know that you intend to refinance before the loan resets.

Interest rates for ARMs tend to be lower than fixed rates in the early years of repayment, so you could potentially save thousands of dollars on interest payments in the initial years of homeownership. Special programs sponsored by states or local housing authorities offer help specifically to first-time buyers.

These programs, which usually offer assistance in the form of down payment grants, can also save first-time borrowers significant money on closing costs.