Yes, there are home loans in the USA and the demand for such loans is still rising. There are 6 main types of the home loans:
- Fixed-rate loans. These loans are the most popular ones among Americans. It’s a long-term option, the repayment period complies 15 or 30 years, monthly payments and single interest rate.
- Adjustable-rate mortgage offers lower interest rate and smaller repayment period (5-10 years). Still, after the repayment period, your interest rate will change. If your interest rate will increase, your monthly payments will increase too.
- FHA loan – the down payment of the Federal Housing Administration loan starts from 3.5% what makes it one of the most desirable loan propositions ever. This loan is especially good for those, who have no substantial savings for down payment.
- Veterans Affairs loans are a great alternative to traditional mortgage as it’s possible to qualify for no money down and no mortgage insurance requirements.
- USDA loan is good for rural families or residents of the rural areas. No down payments are necessary as lenders finance 100% of the price of the house.
- A bridge loan is good for the potential borrowers that haven’t sold their previous house before purchasing a new one. Lenders just mix up your current and new mortgage into one payment.
P.S.: Also read about real estate tax.