The following are the most commonly found types of home loans:
- Conventional - This loan type usually requires the largest down payment. The down payment amount depends on the particular lender. Some lenders (banks) may require 10% of the purchase price while some other lenders may require 20% down.
- FHA - An FHA loan is guaranteed by the US Housing an Urban Development (HUD). This loan is available to most everyone. The down payment for this type of loan is currently set as a minimum of 3.5%. Not all lenders can do an FHA loan. These loans also require the home to meet a minimum condition.
- VA - A VA loan is guaranteed by the Veteran's Administration. This loan is available to most every veteran. These loans have a 0% down payment requirement. Not all lenders can do a VA loan.
- RHS or USDA Rural Housing - A USDA loan is available for homes in rural areas. This loan has a maximum income requirement as well. Details of this loan can be found at http://www.rurdev.usda.gov/ky/rural_housing.htm