Mortgage Programs

Some of the most popular loans are the FHA Home Loan (Federal Housing Administration) and the VA Loan (Veterans Affairs), guaranteed by the government, they generally feature lower interest rates and mortgage fees than other loans.

Conventional
A conventional loan is one that is not guaranteed or insured by the U.S. government.
1) Fannie Mae
Fannie Mae is a congressionally chartered, shareholder owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market. Before approving you, Fannie Mae looks at a number of factors including credit ratings, debt ratio, and employment history. Loans that are approved via Fannie Mae should qualify for a better rate.
More about Fannie Mae.

2) Freddie Mac
Freddie Mac is the common name for the Federal Home Loan Mortgage Corporation. The 2007 maximum loan amount for both Fannie Mae and Freddie Mac is $417,000. Freddie Mac does not issue mortgages directly, rather, they buy mortgages from lenders and sell them as securities on the secondary mortgage market. Before approving you, Freddie Mac looks at a number of factors including credit ratings, debt ratio, and employment history. Like Fannie Mae, loans that are approved via Freddie Mac should qualify for a better rate. A mortgage broker can also help you find the best rates from various lenders for Freddie Mac loans as well as Fannie Mae loans.
More about Freddie Mac.

Government
1) FHA Home Loan (Federal Housing Administration)
An FHA Loan has some advantages over conventional loans. Since FHA loans are insured by the government, they generally have more lenient qualification requirements, lower down payment requirements, and they are assumable loans. The maximum loan amount for an FHA loan (single family) ranges depending on the county where you live. You can contact a mortgage specialist for these maximum amounts for your specific county. Government loans (including the FHA loan) make up 20 percent of residential mortgages in the U.S.
More about FHA Loans.

2) VA (Veterans Affairs)
A VA loan carries many of the same advantages as an FHA home loan. However, to qualify for this loan, you must be a qualifying veteran, the unmarried widow of a veteran, a Public Health Service Officer, or an active duty serviceman. A mortgage specialist can assist you with a VA loan.
More about VA Loans.

Non-Conforming Loans
1) Jumbo Loans
Conventional loans that are too large for government agencies are called jumbo loans. Fannie Mae's and Freddie Mac's loan limits for single family mortgage loan limit is $417,000 for 2007, which changes yearly. Jumbo loans have higher interest rates than conforming loans, typically 0.5 percent to 1 percent higher. Jumbo loans also may have higher down payment requirements.

2) Bad Credit Loans
If you've had credit problems in the recent past, lenders consider you a higher risk borrower. In such circumstances, the credit decision includes factors beyond credit scores and credit history, often including employment, income, expenses, assets and other factors as considerations.
More about Bad Credit Loans.

SCAMS & FRAUD
Some Scams, Fraud, and Consumer Abuse Items in the News

Federal Laws
Major Laws That Govern Financial Institutions & Protect Individuals in Their Financial Dealings

Organizations

Fannie Mae
Freddie Mac
Ginnie Mae
Nellie Mae
Sallie Mae

Consumer Info

Consumer Tips
Credit Bureau
Credit Insurance
Credit Report
Directory of Federal Agencies
Federal Trade Commission (FTC)
Identity Theft
Opt Out
Predatory Lending
Repair Your Bad Credit
Truth in Lending Act
Borrowers Beware

Miscellaneous

Private Mortgage Insurance (PMI)
Prepayment Penalty

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