Adjustable Rate Mortgage:  Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.

Balloon Payment Loan:  A fixed rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term. May be extendable or may roll-over into another type of loan.

Buy-Down Loan:  Buy-Down loans are fixed rate loans where the interest rate and payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment.

Community Homebuyer's Program:  A fixed rate loan for first time buyers with a low down payment (usually 3 to 5%), no cash reserve requirement, and easier qualifying ratios. This loan is subject to the borrower meeting income limits and attending a four-hour training course on home ownership.

Convention Loan:  Convention loans are sometimes more lenient with the appraisal and condition of the property. Conventional loans are not government insured and usually have higher down payment requirements.

 FHA Loans:  FHA loans are insured by the Federal Housing Administration under H.U.D. They offer a low down payment and are easier to qualify for than conventional loans. Appraisal and property condition rules will be applied and loan amounts are limited.

Fixed Rate Loan:  A fixed rate loan has one interest rate constant throughout the life of the loan.

Graduated Payment Mortgage:  A fixed rate loan that has payments starting lower than a standard fixed rate loan, which then increases by a predetermined amount each year for a set number of years.

Non-Qualifying Loan (Assumable):  Non-Qualifying loans are pre-existing loans which can be assumed by a buyer from the seller of property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.

 VA Loan:  VA loans are guaranteed by the Veterans Administration. A veteran must have served 180 days active service.