• Choosing the right mortgage takes time as there are plenty of options.house image by Cora Reed from Fotolia.com
  
  Mortgages are a requirement in the home-buying process for the majority of homeowners in the United States. The process is a lengthy and complex one that involves paperwork, applications, verification of information and data collection from the buyer, seller and lender. Choosing the right mortgage program is the first step in the home-buying process.
  
  

Conventional Mortgage

• A conventional mortgage is the type of mortgage that applicants with good credit scores and enough savings for a 20 percent down payment generally opt for. Conventional mortgages can be either fixed rate or adjustable rate. Fixed-rate mortgages lock in the interest rate at mortgage closing and the homeowner pays that same interest rate for the life of the loan. The length of the loan can be between 15 years and 30 years for a fixed-rate conventional loan.
  
  Adjustable rate loans can be for three, five or 10 years, as the rates will reset themselves at the three-, five- or 10-year point. Adjustable rate conventional loans are best suited for those who plan to move in three to five years, as the mortgage process needs to be redone when the rate is reset.
  
  The most popular conventional mortgage is a fixed-rate, 30-year loan, as it gives the homeowner a consistent figure to budget with, as the payments will remain consistent throughout the life of the mortgage.
  
  

FHA Mortgage

• A mortgage through the FHA (Federal Housing Administration) is a loan designed for people with slightly lower credit scores and for those who do not have the full 20 percent down payment readily available as required by a conventional mortgage. Down payments for an FHA mortgage can be as low as 3.5 percent for those with better credit scores up to 10 percent.
  
  FHA mortgages do require mortgage insurance, which is standard on any mortgage that had less than a 20 percent down payment placed on the property. FHA mortgages are attractive due to the lower credit score requirements, lessened down payment requirement and the reduced closing costs associated with them.
  
  The FHA does not write the mortgages itself. The FHA provides the insurance that backs the mortgage, which is through a conventional lender who services FHA mortgages.
  
  

VA Mortgage

• A VA (Veterans Administration) mortgage is a mortgage program administered through the Veterans Administration that is a benefit of being an active or retired member of the United States military. VA loans have reduced closing costs and require low to no down payments, much like an FHA mortgage. VA mortgages are funded in part by the VA, though they are serviced through conventional lenders who work with VA loans.
  
  

Reverse Mortgage

• A reverse mortgage is a mortgage based on the value and equity in your house and a lender makes the loan payments to you, the homeowner. A reverse mortgage is available to you if you are over the age of 62. The loan works in the same way a mortgage does in that it can be fixed rate or adjustable rate and the loan length can vary. Reverse mortgages are a way to earn income off a property while you are still living in the home. A reverse mortgage pays you a monthly payment while you live in the home; at death, or at the end of the loan term, the house belongs to the lender.