Adjustable-rate mortgage (ARM): This type of loan offers a lower initial rate but adjusts with the market after a certain amount of time. With a 3-year ARM, for instance, your rates will adjust every 3 years after the initial rate period ends.
Conventional mortgage: This is the type of loan that most buyers think of when they hear the word "mortgage." A conventional loan requires good to excellent credit and a down payment of at least 10%. You may need private mortgage insurance if you pay less than 20% down.
Veterans Affairs (VA) mortgage: Veterans and active military service members can qualify for a VA loan. These loans offer up to 100% financing, simplified loan approvals, and lower interest rates.