Prm Capital

  Introduction Residential loans, commonly known as home loans or mortgages, are financial products designed to help individuals purchase or refinance residential properties. Understanding the various types of residential loans and the qualifications required for each can help potential homebuyers make informed decisions. This guide provides an overview of the most common residential loan options and the key factors lenders consider during the qualification process. Types of Residential Loans 1. Conventional Loans Overview Conventional loans are mortgage loans not insured or guaranteed by a government agency. These loans are typically offered by private lenders such as banks, credit unions, and mortgage companies. Key Features Fixed or Adjustable Rates : Available with fixed interest rates (same rate throughout the loan term) or adjustable-rate mortgages (ARMs), which have rates that change periodically. Down Payment : Generally requires a down payment of at least 3% to 20% of the home