Have you decided that now is the time to buy? Did you think that you could just go down to the bank and they would give you the same home loans that they give all of the other homeowners? Did you realize that all of your neighbors probably have much different financing programs from one another and none of them may be what you need?

The lending sources out there have something for just about everyone and you need to make sure that when you buy a home that you get involved with a loan program that is right for you. The program that you get involved in will take your income, your credit score, your home, and the size of your down payment into consideration.

Basic Loan Options

There are many types of home loan mortgages and one that has been around since the Great Depression is the FHA mortgage. This is a great option for a lot of people, including those who cannot afford much of a down payment or none at all.

This type of home loan is one that is insured by the federal government, which allows for the lenders to give to high risk borrowers because they don't have the worry of default. This is often the best option for those that do not have perfect credit as there are not any FICO requirements.

These loans often provide up to 100% financing. You may not have to pay a dime to get into the home, not even closing costs. These options are offered to all buyers, not just first time buyers.

There are a variety of different programs out there in addition to FHA loans, most of which will require to you have at least a five percent down payment, perhaps up to 20%. These financing options are usually good for those that have good to excellent credit and have the cash to make this sort of down payment.

There is what is known as the 15 year fixed rate loans. These loans last just 15 years and they will offer you a great interest rate because you are taking a shorter than usual loan term. Many people like these loans because they build equity fast, and this is due in large part to the hefty monthly payments that you'll need to take on.

In addition there are 30 and 40 year fixed rte loans. This is a nice option because the monthly payments will be less but your interest rate will stay the same for the term of the loan, making it a more stable option for those that plan to live in their home for some time.

In addition to fixed rate loans there are also adjustable rate financing options. These mortgages start out with very low interest rates and they adjust as time goes on. These are a great option if you don't plan to be in a home for more than five or six years because you can take advantage of the low interest rate but get out before the rates adjust.

You need to weigh the benefits of all of these financing options and choose which is most fitting for you, your credit score, and your future plans.

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