The most common type of mortgage is the fixed-rate mortgage, which offers a fixed interest rate throughout the life of the loan. This makes budgeting easier, since you'll always know exactly what your payment will be. Fixed-rate mortgages generally require a larger down payment than other types of loans. However, this may be offset by the stability of a fixed interest rate.

An adjustable-rate mortgage (ARM) is another type of loan that offers an initial period with a fixed interest rate, followed by a variable interest rate that may change over the course of the loan. ARMs generally offer lower initial interest rates than fixed-rate mortgages, making them a good choice for homebuyers who plan to move after a few years. The variable rate may also make it easier to qualify for a loan, since the monthly payments may be lower.

A Federal Housing Administration (FHA) mortgage is a loan that is insured by the government. FHA mortgages are designed to help first-time homebuyers or those with limited resources to purchase a home. FHA loans offer more flexible qualifications and lower down payment requirements than conventional loans, making them an attractive option for many homebuyers. Need to learn more? Read up on our resources.

The Department of Veterans Affairs (VA) offers VA home loans to veterans and certain service members. These loans offer low or no down payments and flexible qualification standards. VA loans also come with some unique benefits, such as no requirement for private mortgage insurance and favorable interest rates.