HOME Buying Smarts

From choosing the right mortgage to packing know-how and building a tool kit for home repairs, we'll help you navigate the home-ownership process. Let's move!

- BERIT THORKELSON illustrations AGNESBIC

Meet Your Mortgage Match

Explore the best loan options for home buyers.

Fixed-Rate (aka Conventional) Mortgage

This is the most standard type of mortgage. It's characterized by the interest rate staying the same for the life of the loan, meaning your mortgage payment does too. (Note that changes in property taxes and/or insurance can increase your monthly payment regardless.) Who's It For? Buyers with solid credit scores, some money to put down, and no plans to move anytime soon.

Adjustable-Rate Mortgage (ARM)

Typically, an ARM starts with an extra-low interest rate, but remember the name: After the initial fixed term, the interest rate adjusts based on the market, and higher monthly payments ensue Who's It For? Buyers confident they'll sell or refinance within the fixed-rate term.

Proceed with caution.

Federal Housing Administration (FHA) Loan

The FHA approves the lender and insures the borrower, which loosens up the latter's qualification processless-than-stellar credit scores and low down payments are A-OK. These loans do require mortgage insurance for a minimum of 11 years, regardless of your down payment.

Who's It For? Anyone, but especially low- to moderate-income buyers working on their credit scores.

Veterans Affairs (VA)

Loan Issued through private lenders, this loan is offered through the U.S. Department of Veterans Affairs, which guarantees part of it.

Expect a lower interest rate and a more lenient credit score requirement than a conventional loan, and with no down payment or mortgage insurance.

Who's It For? Active and veteran service members and spouses, including surviving spouses.