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Have you made a decision of leaving your rented house and wish to move into home ownership? Well in this case you already have your work cut out. Plumbing issues are now your liability, not your landlords. A good, dirt free yard is even your duty, not your landlord's. If the air-conditioning fails in August, you cannot call the landlord, as you are now accountable. Yes – a great amount of work.

This added responsibility is completely moot if you are unable to purchase a house in the first place.  Few people are able to purchase a house with personal savings, therefore you will almost certainly have to take out a home loan.  The prospect of even where to begin to secure a loan can be quite daunting to a prospective home buyer, due in large part to the vast number of types of loans available.  The most common type is the conventional loan where the buyer is responsible with coming up with a large deposit, known as the down payment.  There are also financing options available for those who are unable to come up with a down payment, and there are even government issued loans for those who qualify.  A home loan is most likely going to be the most important piece of finance you ever purchase, so it is important to carefully learn the details.

The most popular home loan, the one which most people think of when they think of getting the loan, is a conventional loan. This loan, however, may not be the best loan out there. In order to get a conventional loan, the borrower must have good credit and make a down payment of at least 3%, which could easily end up being a large amount of money. On a $100 000 house, for example, the down payment would be $3000. In addition, there are any number of things which could appear on your credit report that would prevent you from being able to apply for this loan. There are, however, a number of other options.

There are, for example, government loans, and 100% financing loans. 100% financing loans are available through the conventional means, but it requires perfect credit. Other means of applying include the VA and the FHA.

In terms of the government, the Veteran's Administration (VA) and the Federal Housing Authority (FHA) both offer 100% financing loans.  This means that a prospective buyer doesn't need to come up with a pricey down payment, but as these loans are considered high risk, you will get stuck with a higher interest rate.

These loans, however, do not represent the total of available options. There are, in fact, many more possibilities, your choice of which will depend completely on how good-or terrible-your credit is.

• If you have good credit but no verifiable income there is a type of loan known as a no income verification loan.

• Similarly, if your credit is less than perfect, you might consider researching imperfect credit loans, which might allow you to qualify for lower, more competitive interest rates.

• If you are interested in the amount of money you can reasonably afford to spend on a house, pre-approval programs allow you to do this, even before you have picked out a property.

• There are also programs specifically targeted to first time homebuyers, as these programs are tailored to prospective buyers with good credit but without a long credit history.

5.)New construction loans allow the borrower to lock in their interest rate and keep it that way after they move, regardless of how rates change. This, however, can be a disadvantage if interest rates go down, since you'll end up paying the higher interest.

Tags: banking, bonds, credit, Finance, homeloans, Loans, money, mortgages, personal finance, property