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Having your own home is a cherished dream for most. Buying a home needs big investment, if you cannot pull out the full investment from your own resources, you need to plan well on total investment and monthly installments. You need to select which of the home loan programs is right for you? There is no simple answer to that question.

Home loan programs need to be studied and compared to choose what is best and it may vary for every buyer depending on his financial situation. This depends upon your individual & family preferences and financial circumstances.

Some factors to consider when choosing from the different home loan programs are your current financial situation & stability of your current finacial situation.A fixed rate mortgage can save you thousands in interest over the period of the loan, but it will also give you higher monthly mortgage rates.

Adjustable mortgae rate will give you lower monthly payments but monthly payments can change if the rates change in future.Conventional loans are secured by government approved lenders. They are also termed as government sponsored entities (GSE’s). They can be used to purchase or to refinance homes with a first or a second mortgage.FHA loans programs are aimed at helping low income families to be home owners. These programs are designed to protect a mortgage company from default. This encourages mortgage companies to make loans to families that many not meet normal credit guidelines. In case of FHA loans, lower down payments can be as low a 3% against the standard 10% requirements. Closing costs of up to 2 or 3 per cent of the home value can be financed, this reduces the up front money needed. The FHA also imposes limits on the fees from the mortgage company such as the loan origination fee cannot exceed 1% of the amount of the mortgage.VA loans are available to military veterans who served on active duty and had normal discharge from military service. There are other eligibility requirements. If you think you may be eligible contact your local or state veterans’ administration representative.The biggest factor in a VA loan is that it does not require a down payment in most cases. There is no mortgage insurance payments needed, closing costs to the buyer are also limited. You can negotiate rates with the lender and you then have a choice of payment plans with up to a 30 year loan.The last loan program called a subprime loan is for people with poor credit who may not qualify for a conventional loan or a VA or FHA guaranteed loan. These loans require a higher down payment and carry a higher interest rate. 

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