Conventional
Fixed
Rate
Mortgage
Conventional
Adjustable
Rate
Mortgages
RHS
Loans
VA
Loans
KHC
Loans
------------------------------------
Conventional
Fixed
Rate
Mortgage
The
conventional
fixed
rate
mortgage
has
been
the
most
popular
loan
product
for
many
years.
The
interest
rate
never
changes,
thus
providing
stable
and
consistent
mortgage
payments
for
the
life
of
the
loan.
You
will
have
the
comfort
of
knowing
that
your
payment
will
not
increase
based
on
market
rate
changes.
The
only
adjustment
to
your
payment
will
be
the
result
of
changes
in
your
monthly
escrow
account.
Conventional
fixed-rate
mortgages
are
available
for
the
purchase
or
refinance
of
1- 4
family
owner-occupied
residential
properties,
second
homes,
townhouses,
condominiums
or
investment
residential
properties.
If
you
plan
to
stay
in
your
home
for
several
years,
the
fixed-rate
mortgage
will
provide
you
the
comfort
of
stable
payments
and
may
be
the
best
option
for
you.
------------------------------------
Conventional
Adjustable
Rate
Mortgages
The
conventional
adjustable
rate
mortgage
(ARM)
is a
good
alternative
in
some
situations.
The
interest
rate
changes
periodically,
usually
in
relation
to
an
index,
and
the
monthly
payment
will
increase
or
decrease
accordingly.
The
initial
interest
rate
on
an
adjustable
rate
mortgage
will
usually
be
lower
than
the
conventional
fixed
rate
mortgage,
thus
providing
for
lower
monthly
payments.
The
starting
interest
rate
will
stay
fixed
for
a
period
of
time
then
adjust
regularly
based
on
market
indicators.
Most
ARMs
adjust
annually
but
some
adjust
at
different
intervals.
On
most
ARM
products,
individual
adjustments
are
capped
at a
certain
amount
and
the
rate
cannot
exceed
a
lifetime
cap
rate.
Conventional
adjustable
rate
mortgages
are
available
for
the
purchase
or
refinance
of
1- 4
family
owner-occupied
residential
properties,
second
homes,
townhouses,
condominiums
or
investment
residential
properties.
If
you
plan
to
stay
in
your
home
for
a
short
period
of
time,
especially
if
less
than
the
initial
fixed
rate
period,
an
ARM
product
may
be
the
best
mortgage
choice
for
you.
Your
lender
can
discuss
different
ARM
product
options
with
you
and
the
features
of
each
one.
------------------------------------
RHS
Loans
RHS
(Rural
Housing
Service)
loans
are
made
available
by
the
USDA
–
Rural
Development.
They
are
fixed
rate
mortgages
that
require
no
down
payment.
They
are
available
to
low
and
moderate
income
rural
residents
for
purchasing
new
or
existing
single-family
owner-occupied
residences.
There
is
no
mortgage
insurance
required
and
in
some
situations
the
closing
costs
may
be
included
in
the
total
loan
amount.
RHS
loans
are
restricted
by
income
limits
based
on
the
household
family
size
and
the
location
of
the
property.
Income
limits
are
based
on
gross
annual
income
for
all
adult
members
in
the
household.
RHS
loans
are
not
available
in
all
Kentucky
counties.
Please
contact
your
lender
to
determine
income
or
county
eligibility.
------------------------------------
VA
Loans
VA
loans
are
guaranteed
by
the
Department
of
Veteran
Affairs
and
available
to
eligible
veterans
with
available
entitlement.
The
amount
of
mortgage
a
veteran
can
obtain
depends
partly
on
whether
the
veteran
has
used
entitlement
previously.
The
loans
can
be
fixed
rate
or
adjustable
rate
mortgages.
The
majority
of
VA
loans
that
are
originated
are
fixed
rate
mortgages.
VA
loans
are
available
for
1 –
4
family
owner-occupied
properties.
There
is
no
down
payment
required
and
no
mortgage
insurance
premium.
Veterans
must
have
acceptable
credit
history,
stable
and
adequate
income
to
meet
the
mortgage
obligation
and
sufficient
funds
for
closing.
Veterans
must
have
residual
income
after
all
expenses
including
payroll
deductions,
total
housing
expenses
and
other
debt
obligations
are
deducted
from
gross
monthly
income.
------------------------------------
KHC
Loans
KHC
loans
provide
homeownership
options
to
very
low,
low
and
moderate
income
borrowers.
Borrowers
may
obtain
KHC
loans
to
purchase
a
single-family
owner
occupied
principal
residence.
KHC
loans
are
fixed
rate
mortgages
and
are
available
to
qualified
borrowers
in
urban
and
rural
areas.
Borrowers
must
meet
all
requirements
of
the
KHC
loan
program.
KHC
loans
normally
have
lower
interest
rates
than
standard
conventional
products.
KHC
loans
are
restricted
by
income
guidelines
based
on
family
size
and
location
of
the
property.
Income
limits
are
based
on
gross
household
income
from
all
sources
for
the
12-month
period
commencing
with
loan
closing.
KHC
loans
are
further
restricted
by
purchase
price
limits.
The
property
being
purchased
must
remain
the
borrower’s
principal
residence
for
the
life
of
the
loan.
Your
lender
can
discuss
the
options
of a
KHC
loan
to
determine
if
it
is a
good
mortgage
choice
for
you.
