Buying a house is an exciting and often overwhelming experience, and one of the most important decisions you’ll need to make is how you’ll finance it. With so many different loan products available, it can be difficult to determine which loan is best for your situation. In this blog, we’ll explore the different types of loans available for purchasing a home and how to decide which is the best for you.

Conventional Mortgage

The most common type of loan used for home purchases is a conventional mortgage. This loan is not insured or guaranteed by the federal government. Conventional mortgage loans generally require a down payment of at least 20%, and the borrower is typically responsible for paying the closing costs associated with the loan. These loans often have lower interest rates than other types of loans and can be easier to qualify for, depending on your credit score and other factors.

Fixed-Rate Home Loans

Fixed-rate home loans are a popular choice for homebuyers who want the security of a predictable monthly payment. With a fixed-rate mortgage, the interest rate remains the same throughout the loan term, so your monthly payments remain the same. This makes it a great option for those who don’t plan to stay in their home for a long time and want to avoid the potential risks of an adjustable-rate mortgage.

Adjustable-Rate Mortgages

An adjustable-rate mortgage (ARM) starts with a fixed rate for a certain amount of time, then the rate adjusts periodically. ARMs are often more flexible than fixed-rate mortgages and can be a good choice for people who plan to move before the loan term is up.

If you’re considering taking out an adjustable-rate mortgage (ARM), it’s important to understand how this type of loan works. An ARM starts with a fixed rate for a predetermined amount of time, typically three, five, seven, or ten years, after which the rate adjusts periodically, usually annually. The main advantage of an ARM is that it can provide a lower initial interest rate than a fixed-rate mortgage, allowing you to save money on your monthly payments.

FHA Loans

FHA loans are backed by the Federal Housing Administration and are designed to help people with limited incomes or poor credit histories buy a home. They typically require a lower down payment and have more flexible requirements than other loans.

VA Loans

VA loans are an excellent option for veterans and their families looking to buy a home. They offer lower interest rates than other loan types and do not require a down payment. This makes them a great choice for those who may not have the financial means to make a large down payment on a home. In addition, VA loans can be used to refinance an existing mortgage and can be used to purchase a manufactured home or a condo.

USDA Loans

USDA loans are government-backed loans designed to help people buy homes in rural areas. They offer low-interest rates, no down payment, and are often easier to qualify for than conventional loans.


When looking for the best home loans, it is important to consider the different types of loans available, their features, and the financial situation of the borrower. The best loan for one person may not be the best loan for another. It is recommended that borrowers compare the different loan options and choose the one that best suits their needs and budget. With the right loan, you can be on your way to owning a home.

Planning to buy a house and in need of a home loan? Total Lending Concepts can help. Whether you are a first-time home buyer searching for your first home or ready to buy that dream home you’ve had your eye on, we offer home loans to fit every situation. Get in touch with us today!