A land loan helps you buy a vacant lot or acreage, but lenders view land as riskier than a home. Learn the types of land loans, typical down payments and rates, lender requirements, and alternatives such as seller financing and USDA loans.
An FHA 203(k) loan lets you finance a home purchase or refinance plus renovation costs in a single mortgage with a low down payment. Learn the limited and standard versions, eligible repairs, requirements, and how the process works.
A construction loan finances the cost of building a home, paying the builder in stages called draws. Learn how construction-to-permanent and stand-alone loans work, qualification requirements, rates, and how to avoid costly surprises.
A bridge loan lets homeowners tap equity in their current house to buy the next one before it sells. Learn how bridge loans are structured, typical terms, costs, risks, and alternatives such as HELOCs and contingent offers.
An assumable mortgage lets a buyer take over the seller’s existing loan, rate and all. Learn which loans qualify, how the assumption process works, how to cover the equity gap, and the risks for buyers and sellers.
What a second mortgage is, how home equity loans and HELOCs differ, how lenders calculate how much you can borrow using combined loan-to-value, closing costs, tax deductibility of interest, the three-day right of rescission, and the risks of borrowing against your home.
How a mortgage loan modification can lower your payment by changing the rate, term, or balance, who qualifies, what documents servicers require, federal loss mitigation protections, FHA and VA options, how modification affects credit and taxes, and how to avoid scams.
How a mortgage escrow account pays property taxes and homeowners insurance, why your payment changes, how the annual escrow analysis works, what RESPA limits allow, and how to handle a shortage or waive escrow.
What a mortgage rate lock guarantees, typical lock periods and fees, extensions, float-down options, what can break a lock, and how to decide when to lock your rate.
Your debt-to-income ratio tells lenders how much of your income already goes to debt. Learn how front-end and back-end DTI are calculated, common limits by loan type, and ways to lower yours.