INTRODUCTION We all understand that buying a home is a huge responsibility as it is a step towards your

dreams. Owning your home means you have secured your present and have planted the seed for an investment in your future. Finding a low-interest mortgage is increasingly difficult, especially in times where the economy is unstable and when the borrowers have many more credit options. So finding the suitable one is quite difficult task.

TWO TYPES OF MORTGAGE LOANS There are two types of mortgage loans; government loans like FHA and VA, and the other are

called conventional loans. Understanding the differences between conventional, FHA and VA loans can help you decide which loan program will best meet your needs. All three types of loans are issued by banks and other approved lenders, but FHA and VA loans are backed by the government, while conventional loans are not. Each type of loan has other distinct characteristics. Let's take a look.

While buying a house you might want to consider FHA home loans. FHA stands for the Federal Housing Administration. This is a government organization that is responsible for Housing and Urban Development or HUD. FHA is the group that insures mortgage loans so that the lender will give you a better deal and will help you out without requiring a large amount of money down. There are certain eligibility requirements when it comes to an FHA housing loan. The lender and the FHA will look at your credit history, income, and how much ability you have to repay the loan.

There will also be requirements as to the maximum amount that you are allowed to borrow and there will be certain loan terms that you will have to adhere to. In order to get a FHA loan in California you will need to sit down with the FHA loan specialists to see what other requirements you will have to meet in order to qualify the loans. This is a great option for anybody who is purchasing a home, land, or both. FHA loans are best for borrowers with limited cash reserves and/or average credit.

To support veterans that wish to have their own home at a fair and viable mortgage interest rate, the US Department of Veterans Affairs has started the Home Loan Program for qualified individuals. VA mortgage interest rates are remarkably more competitive and can be the best opportunity for veterans to have a sustainable mortgage. The first and generally most important effect of the VA home loan program is that it attracts more lenders to the prospect of providing loans to veterans. The VA does this basically through "guarantee" or "backing" loans made by veterans so that if the borrower is unable to make the required payments on time, the lender can goes to the VA to collect and prevent any loss from the loan. By attracting larger numbers of lenders, the VA creates a healthy market for veterans to choose from a therefore better VA loan rate offer from all the lenders. VA loans in California are great for borrowers of limited income, with no cash reserves and with average or lower credit scores.

You have many decisions to make when choosing, which type of loan is best for your situation. Is the FHA loan the best? What about a VA loan? When is a Conventional loan better than an FHA /VA loan? A mortgage specialist can analyze your entire situation, and help you determine which loan is best for you.

Call us at 877267-4685 Ainsworth Financial Mortgage Cooperation

will help you!!!