Types of Loans

In this video, you will learn about real estate loans. When you need a loan, it can be hard to determine which one is best for you and what you need. The most common everyone uses is called a residential loan.

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It tends to be the lowest asset and the banks will be the most aggressive on the interest rates. Residential loans can be broken into a couple of different areas. They are VA, RHA, and conventional. Conventional loans are loans that are not backed by the government. Most people opt for a 30-year fixed loan. Most loans are offered in fixed and adjustable rates. VA loans are only for veterans. Commercial properties are any properties over four units. Anything that is not residential becomes commercial. There is more risks here, so the rates tend to be higher than residential. Commercial rates are generally longer than 30-year financing. With commerce, there are a ton of different programs. It gets reset every five years based on the market. Typically, commercial loans are dictated by the local banks in your area. If you are interested in learning more, keep watching this video for more information.