LOAN TYPES

FIRSTCO MORTGAGE OFFERS A BROAD VARIETY OF LOAN TYPES, EACH OF WHICH PROVIDES MANY OPTIONS FOR REPAYMENT TYPES, TERMS, AND CREDIT PROFILES. BELOW IS A GENERAL DESCRIPTION OF THE MOST COMMON LOAN TYPES.

Conventional
A mortgage loan that is not insured or guaranteed by the federal government or one of its agencies, such as FHA, VA or USDA.

FHA
A loan that is insured by the Federal Housing Administration (FHA) of the U.S. Department of Housing and Urban Development (HUD). FHA Loans offer a minimal down-payment and reduced monthly mortgage insurance payment, making it often an ideal alternative for the first-time homebuyer.

VA
A mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). Eligible veterans may borrow up to 100% of the purchase price or value of the home.

Rural Housing
A mortgage loan that is guaranteed by the U.S. Department of Agriculture (USDA). This loan is available only in certain areas as designated by USDA. Borrowers may finance up to 100% of the value of the home and may in some instances include closing costs and even some repairs or improvements to the property.

Reverse Mortgage
A program for homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining. The program allows homeowners to borrow against the equity in their homes in a lump sum, on a monthly basis for a fixed term or for as long as they live in the home, or on an occasional basis as a line of credit. Borrowers do not make monthly payments on a reverse mortgage.

Second Mortgage
A mortgage that has a lien position subordinate to the first mortgage.

Home Equity Line of Credit
A mortgage loan, usually in second position, that allows a borrower to obtain cash drawn against home equity, up to a certain amount. This is most commonly a variable-rate loan