When it comes time to finance the purchase of your new home, picking the right loan product can make it easier to get qualified and save you a significant amount of money over the course of the loan term. Prior to the financial crash that led to the recession, borrowers had a bewildering range of choices when it came to mortgage financing. That’s not as true today, but it still makes sense to choose from the limited selection wisely.

Prior to 2007, all of the major banks, insurance companies and other corporations with money to lend had their own brands of home loans for sale to home buyers. These loans were sold by banks and mortgage brokers on behalf of these investors, who ultimately funded the loans so people could buy homes. Not all of those products served borrowers the way they had hoped. After the Wall Street Reform and Consumer Protection Act, also known as the Dodd-Frank Act, was signed into law in 2010, most of those products disappeared.

Today, consumers have access to fewer financing tools from a far more limited set of investors, but they each have their differences.

Conforming loans

These mortgage loan products are offered by Fannie Mae and Freddie Mac, the former quasi-governmental institutions that are now in conservatorship to the federal government. The vast majority of all mortgages written today are purchased by these big investors. Their products have been called the “plain vanilla” offering by the industry. They offer little flexibility in their underwriting guidelines; in fact, any loan product that meets their underwriting requirements is said to be “conforming.”

FHA loans

Offered by a division of the U.S. Department of Housing and Urban Development, FHA loans have long been a tool to increase homeownership. These loans are provided by the same banks and mortgage companies that provide conventional loans, in which the Federal Housing Administration insures against default. These loans are designed for low- to moderate-income borrowers. The qualifying guidelines are typically more lax than the conventional guidelines. One key feature of FHA loans is their lower down payment requirement.

VA loans

Veterans of our armed forces may qualify for a mortgage loan guaranteed by the Department of Veterans Affairs. These VA loans are not really offered by the government, but the VA offers lenders who provide financing to these borrowers a guarantee should the borrower get into trouble.

Jumbo loans

When borrowers want to buy more home than most lenders want to lend against, they opt for a jumbo. Different investors have their own kinds of product for this market. Investors who offer jumbo loans give borrowers access to higher loan limits, but they also have tougher underwriting requirements and can cost more than conventional loans.

Loans from any of these sources can come in a number of flavors, including fixed interest rate or adjustable interest rate, and with various terms, from 5 years for some adjustable-rate loans up to 40 years for some. Traditionally, the terms on mortgages are either 15 or 30 years, with most borrowers opting for the latter.

To find out more about the different sources that provide home financing and the features and benefits of the different loan products they offer, visit with your bank or mortgage lender.

Related:

• Using Gift Money for a Down Payment
• 6 in 10 Qualify for a Mortgage: Do You?
• Self-Employed? Avoid These Common Borrower Traps

Rick Grant has been covering financial services for the trade press for more than 15 years. He specializes in home finance and technology.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Bedford Corners NY Weekly Real Estate Report

Homes for sale29Median Ask Price$1,949,000.00Low Price$569,000.00High Price$11,250,000.00Average Size5755Average Price/foot$463.00Average DOM167Average Ask Price$2,927,134.00

Katonah NY Weekly Real Estate Report

Homes for sale50Median Ask Price$731,950.00Low Price$359,000.00High Price$18,995,000.00Average Size3531Average Price/foot$401.00Average DOM113Average Ask Price$1,885,692.00

Home prices rose more on an annual basis in February than they have in nearly seven years, largely due to outsized price appreciation in Western states, according to a report released today by real estate analytics firm CoreLogic.

Overal home prices, including distressed sales (short sales and sales of bank-owned homes), jumped 10.2 percent on an annual basis in February, marking the biggest year-over-year increase since March 2006, according to the CoreLogic Home Price Index. Home prices also rose for the 12th straight month in February, increasing 0.5 percent from January.

Distressed sales hardly made a dent in the overall price trend — when excluded from the calculation, home prices rose 10.1 percent year over year in February.

CoreLogic’s pending home sales price index indicates that home prices should continue their upward trend in March, the firm said. CoreLogic predicts prices will increase 10.2 percent on a year-over-year basis and 1.2 percent compared to February. 

“The rebound in prices is heavily driven by Western states. Eight of the top ten highest appreciating large markets are in California, with Phoenix and Las Vegas rounding out the list,” said Mark Fleming, chief economist for CoreLogic, in a statement.

This month’s annual price increase put home values at a level that is 26.3 percent below their peak before the housing meltdown, CoreLogic reported. In the depths of the real estate slump, home prices plummeted by more than 30 percent from the pinnacle they reached during the boom, according to some home price indexes. 

Q: I need to insulate my attic since what I have up there is little to nothing. The small brick home is only 1,450 square feet. What is the best stuff to put up there at reasonable cost? What is the best stuff that I can install myself? —Annette Z.

A: One of the easiest and most cost-effective ways to insulate an attic if you’re having a contractor do it is to have him blow in loose-fill fiberglass insulation.

If you’d like to do the work yourself to save some money, I’d suggest blown-in cellulose. It’s a pretty straightforward project, although it is a little messy. Simply open up the bags of cellulose (it’s a gray, papery material, made primarily from ground and treated newspaper) and dump them into the blower. Direct the hose from the blower into the attic, and spray a uniform layer of insulation. Complete instructions, including safety precautions for protecting yourself and creating air spaces around chimneys and other heat-producing fixtures, are included with the insulation.

Blowers and bags of cellulose insulation are available at most home centers and some other retailers that sell insulation. Many home centers and larger retailers will also give you free use of the blower if you purchase a certain minimum quantity of insulation, so there’s a way to save even more.