If you’re looking at Lincoln Park homes for sale, it makes sense that you might also be looking at mortgage loans.  There are several types of loans, but they all fall into two categories: government loans and conventional loans.

Government insured loans are FHA, VA or RHS (Rural Housing) loans and have specific criteria to be eligible.

Any loan that doesn’t fall under FHA, VA or RHS are conventional loans; conventional loans can be conforming or non-conforming.

  • Conforming Loans follow guidelines set out by Fannie Mae and Freddie Mac, which establish suitable properties, maximum loan amounts, borrower credit and income requirements and down payments.
  • Jumbo Loans are above the maximum loan amount established by the guidelines, and are non-conforming loans.  They’re bought and sold on a small scale, and often have higher interest rates than conforming loans.
  • B/C Loans don’t meet the borrower credit requirements set out by the guidelines.  This type of loan is offered to borrowers that filed for bankruptcy, foreclosure, or have late payments on their credit reports.  What interest rates and programs you qualify for depend on your financial situation and credit history at the time you apply for a mortgage.
  • Fixed Rate Mortgages (FRMs) have fixed interest rates and monthly mortgage payment for the period of the loan.  In general, you can get a lower interest rate for a shorter loan term.  FRMs are available for 10, 15, 20, 25, 30 and 40 years, though 15 and 30-year loans are the most popular.
  • Balloon Loans are short-term FRMs, usually based on a 30-year schedule, with a lump sum payment at the end of a 3, 5 or 7-year term.
  • Adjustable Rate Mortgages (ARMs) have fluctuating interest rates and monthly payments.  The lender makes periodic adjustments to the interest rate, based on changes in a defined index that is established at the time of your application.

When looking at the different types of mortgage loans, remember that it’s important to choose the right mortgage for your situation.

Find thousands of Lincoln Park homes for sale and shop from the comfort of your own home on my website at LincolnParkLiving.com.  Or, let me do the searching for you.  Just give me a call (312.953.8685) or shoot me an email (Doug@LincolnParkLiving.com) and I’ll set up a home search for you, which you can modify or add searches as you wish.