| Home loan lending assists in purchasing or refinancing a | | | | principal is paid at the end of the loan period. |
| home. There are different types of home loan lending. | | | | "No documentation loan" has the following features: the |
| These include fixed rate mortgages, adjustable rate | | | | borrower need not disclose and document details such |
| mortgages, interest only loans, no documentation loans, | | | | as job, source of income or assets. This loan is |
| no income or no asset loans, no ratio loans, stated | | | | approved on the basis of the borrower's credit |
| income loans, and FHA loans. | | | | worthiness. |
| The fixed rate mortgage has the following features: it | | | | "No income/no asset loan" is based on details of the |
| provides savings for a long period, its rate of interest | | | | borrower such as job and credit worthiness. There is |
| remains fixed for the entire period of loan, and its | | | | no need to specify the particulars of assets and |
| monthly payment of interest and principal remains | | | | income. |
| fixed. | | | | "State income home loan" has the following features: |
| Adjustable rate mortgage (ARM) has the following | | | | there is no need of tax returns or other income |
| features: interest rates are on the basis of index which | | | | documentation to process this loan. |
| changes according to the varying interest rates in the | | | | The "federal housing administration (FHA) loan" |
| market, it begins with lower rate of interest, its monthly | | | | provides insurance on home loans made by |
| payments are lower than a fixed rate loan, it allows | | | | recognized lending institutions. FHA loan limits differ |
| the borrower to get a loan with a larger amount, etc. | | | | depending on the county where the assets are |
| In the case of interest only home loans, monthly | | | | located. |
| payment consists of the interest amount only, the | | | | |