There are different types of loan in the United State of America namely Federal Housing Administration (FHA), Conventional Loan and Department of Veterans Affairs (VA Loan). These types of loan have different requirements, eligibility and process. In getting a mortgage, you must study carefully its various guideline and terms that you can maximize your advantage in getting a mortgage.
Federal Housing Administration (FHA Loan)
A loan from the Federal Housing Administration (FHA) that allow a person to get a mortgage / loan who are not capable of high down payment for the property. The qualified borrower should pay upfront of 3.5 percent that serves as down payment. This type of loan is available for primary residence occupancy only.
A loan not guaranteed nor insured by the federal or state government. Borrower can use this type of loan to purchase one to four unit properties, condominium that can be primary residential, secondary residential or investment property.
Department of Veterans Affairs (VA Loan)
A long term loan with low or no down payment provided by the Department of Veterans Affairs. This type of loan mainly caters only military service personnel or other entitlements.
Choosing the right type of loan can merely affect your financial readiness so you must be very careful and I would highly suggest to ask for a financial adviser that will explain thoroughly all the details, terms and condition and regulations stated on the loan / mortgage contract.