What Types Of Loans Are Available From Institutional Lenders?
The three most common types of real estate loans available from institutional lenders are: • The conventional loan (remember that the conventional loan may have a fixed rate, a variable rate, shared appreciation, graduated payments, or some combination of these variations), • Veterans Affairs loan, and • Federal Housing Administration loan. The conventional loan, which is the one most often used, has several advantages over the other two. Although it may not always be assumable, it is much less hampered by federal restrictions and red tape than are the other two. Plus, there is no set maximum amount which may be borrowed. Virtually anyone who has basic good credit can qualify for a conventional loan. In addition, this type of loan takes the least amount of time to obtain. The newly originated DVA loan, as opposed to one being assumed, is available to eligible armed services veterans only. This type of loan is backed by the Department of Veterans Affairs (DVA) and involves a certain amo
