Fixed Rate
A fixed rate mortgage requires a monthly payment that is the same amount throughout the term of the loan. When you sign the loan papers you agree on an interest rate and that rate never changes. This is the best type of loan if interest rates are low when you get a mortgage.

Adjustable Rate
Be careful if you're considering taking an adjustable rate mortgage. An adjustable rate mortgage allows the interest rate on your loan to vary with prevailing interest rates. If rates go up, so will your mortgage rate and monthly payment. If rates increase a lot, you could be in big trouble. If rates go down, your mortgage rate will drop and so will your monthly payment. A good strategy may be to stick with a fixed rate loan to safeguard against raising interest rates. And if rates drop, refinance your mortgage to take advantage of lower rates.

Pledged Asset Mortgages
In a pledged asset mortgage, you can use assets such as stocks, bonds, other property, etc. as collateral on your loan. This eliminates the need for a down payment and also avoids PMI (Private Mortgage Insurance).

Mortgage Help Programs
There are programs that will assist you in obtaining and financing a mortgage. The number and variety of these programs makes it impossible to list and discuss them all here. Check with your bank, city development office or a knowledgeable real estate agent.

Veterans Administration (VA) Loans
The Veterans Administration offers loan benefits to veterans who served in the armed forces on active duty during times of conflict, such as Korea, Vietnam, Desert Storm and Afghanistan, as long as they were not discharged dishonorably. The first step to obtain a VA loan is to obtain a certificate of eligibility, then submit it with your most recent discharge or separation papers to a VA eligibility center.

• VA loans offer some very helpful benefits including:
• 100% financing - That means no down payment
• An origination fee of no more than 1% of the loan
• Low interest rates
• A loan guarantee from the VA

Federal Housing Administration (FHA) Loans
The FHA was created to aid people in obtaining affordable housing. FHA loans are actually made by a lending institution, such as a bank, but the federal government insures the loan. This is often the least expensive loan that non-veterans can get.

To qualify for an FHA loan, you must be a permanent resident of the United States (although not necessarily a citizen), you must live in the home you purchase with the loan and the dollar amount of the loan must fall below a maximum set by the government. This amount is raised for those purchasing a home in designated "high cost" areas of the country. You also have to be "credit worthy," meaning you need to have your credit report in order. You know how to do that, right?

• The benefits of an FHA loan include:
• A choice of many different loan programs
• Low down payment (as low as 5%)
• Low closing costs
• A higher qualifying debt ratio than other loans, meaning you can have more debt or less income

Borrowing against your 401(k) plan
If you contribute to a 401(k) plan at work, you might be able to borrow money from your plan to buy your house. You can borrow up to half of the money you have accumulated (up to $50,000). Even though it is your money you will have to pay it back as you would any other loan or you will be penalized. Usually it's paid back through monthly deductions from your paycheck.

This strategy does have its drawbacks, however. Borrowing may slow the growth of your 401(k) investment. Also, you may decide to decrease the amount of your monthly 401(k) contributions to compensate for the repayment deductions. This will keep the amount of your check the same but will also hinder the growth of your retirement savings.

If you leave your job, any outstanding 401(k) loan balance will be considered a withdrawal and you will be assessed a 10% penalty if you are under 59 1⁄2 and you will also be taxed on that money.

Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are two federal agencies that can assist you in finding approved lenders. They do not, however, make loans themselves.

Foreclosure Homes
A foreclosed home is one that has been "repossessed" by the lender. These homes are then resold quickly and sometimes for much less than market value. If you can find one of these homes, chances are you can get a great deal.

For Sale By Owner (FSBO)
You may be in luck if a house you are interested in is being sold by the owner, without the assistance of a real estate agent. Since the seller does not have to pay a standard agent fee, as much as 8% of the selling price, the seller can actually sell the house for less and make more.

It is harder to find a FSBO home since they aren't listed with real estate agencies. But you can find them in the newspaper or simply by driving down the street looking for a "For Sale" sign. You may want to hire an attorney to help you through the paperwork aspect of the sale, since no real estate agent is involved to guide you.