For many people, owning a home is a symbol of economic success and an investment that can grow in value over time. However, many types of home loan options can be too taxing for millions of people due to lower income or higher debt ratios.
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FHA loans other than traditional mortgages
The HUD website is a useful resource for information on all kinds of FHA loans.
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Equity Conversion Mortgage
The HECM is a reverse mortgage that allows homeowners aged 62 and over to convert a portion of their home equity into cash.
To qualify, you must either own your property or have a small mortgage balance and live in the home full time.
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FHA Mortgage 203 (k)
For those buying a home that needs major upgrades, a 203 (k) mortgage allows you to buy the home and finance the renovations in one mortgage.
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Energy Efficient Mortgage Program
The FHA’s Energy Efficient Mortgage program allows homeowners to finance home energy upgrades, which also helps them save money on energy bills.
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Loan under paragraph 245 (a)
Section 245 (a) of the FHA provides for loans that provide for an increase in homeowners’ income over time. A growing equity mortgage (GEM) reduces the initial costs of buying a home, with the plan that mortgage payments will gradually increase. As the payments increase, the additional payments reduce the principal, which shortens the term of the loan.
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Gradual Payment Mortgage (GPM)
A Progress Payment Mortgage (GPM) is similar to a GEM, with monthly mortgage payments gradually increasing over time.
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