• Find a Home
    • Search by City or Neighborhood
    • South Bay RE News
    • Open Houses
      • Open Houses in El Segundo CA
      • Manhattan Beach Open Houses
      • Redondo Beach Open Houses
      • Torrance Open Houses
      • Hermosa Beach Open Houses
      • Palos Verdes Estates Open Houses
      • Rancho Palos Verdes Open Houses
      • Hawthorne CA Open Houses
    • All Manhattan Beach
      • Hill Section
      • Sand Section
      • Tree Section
      • Manhattan Village
      • East Manhattan Beach
      • East Manhattan – S of MB Blvd
      • Liberty Village
    • All Redondo Beach
      • North Redondo Beach
      • South Redondo Beach
      • The Village and Seascape
    • Hermosa Beach
    • El Segundo
    • Torrance
    • Palos Verdes
      • Palos Verdes Estates
      • Rancho Palos Verdes
      • Rolling Hills
      • Rolling Hills Estates
    • Hollywood Riviera
    • Hawthorne
      • Hollyglen and Del Aire
        • Three Sixty South Bay
        • Fusion South Bay Townhomes – Gated Community in Hawthorne
    • 55+ Senior Communities
    • Oceanfront Homes
    • Lawndale
    • Gardena
    • Marina Del Rey
    • Westchester
  • FREE Listing Updates
    • Entire South Bay
    • Manhattan Beach
    • Redondo Beach
    • Hawthorne, Hollyglen, 360 and Fusion
    • Torrance
    • Plaza Del Amo
  • Buyers
    • Search South Bay Homes
    • Search for homes
    • Buyer & Seller FAQs
      • Home Buyer and Seller Basics
      • Tips and FAQs
      • First Time Buyer Info
  • Sellers
    • Your Home’s Value
    • Recent South Bay Sales
    • Our Listing Presentation
    • What’s A CMA?
    • Listing and Selling
    • How We Market Homes
    • How We Sell Homes
    • Client Testimonials
  • Neighborhoods
    • Search by Neighborhood
    • Schools
      • El Segundo Schools
      • Hermosa Beach Schools
      • Redondo Beach Schools
      • Wiseburn School District
      • Torrance Schools – Information on the Torrnance USD
      • Manhattan Beach Schools
        • Manhattan School Boundary Map
        • Homes in Meadows area
        • Homes in Pennekamp area
        • Homes in Pacific area
        • Homes in Robinson area
        • Homes in Grandview area
      • Palos Verdes School District
      • Hawthorne Elementary School District
      • Lawndale School District
        • Lawndale School Boundary Map
    • El Segundo
    • Hawthorne
    • Hermosa Beach
    • Lawndale
    • Manhattan Beach
      • Sand Section
      • Manhattan Village
      • Tree Section
      • Hill Section
      • East Manhattan
    • Palos Verdes
      • Real Estate Map
    • Redondo Beach
      • North Redondo Beach
        • The Golden Hills
      • South Redondo Beach
        • Village Oceanview Condos
        • Brookside Village
        • The Esplanade
        • The Avenues
      • Hollywood Riviera
    • Torrrance
      • North Torrance
      • Walteria and Victoria Knolls
      • Central Torrance & Plaza Del Amo
      • Harbor Gateway & County Strip
      • Plaza Del Amo
      • Southwood
      • West Torrance
      • Gated Communities Plaza Del Amo
      • South Torrance
    • Three Sixty South Bay – Gated Resort Style Living
    • Fusion South Bay Townhomes – Gated Community in Hawthorne
    • Foreclosures and Short Sales
    • Hollyglen and Del Aire
    • Harbor City
    • Lomita
  • About
    • Real Estate Trends and Statistics
    • Median Home Prices
    • Recent Home Sales
    • Client Testimonials
    • South Bay Realtor Keith Kyle
    • Vista Sotheby’s
    • Tax Information
      • Capital Gains Tax
      • 1031 Exchange
      • Property Tax FAQs
      • Props 60 and 90
      • Ways of Owning
      • Homeowner’s Exemption
  • Real Estate Blog
  • Home

Real estate and homes for sale in the South Bay

Keith Kyle Realtor - Vista Sotheby's International Realty

You are here: Home / Mortgage Loans and Lender Information / Types of Mortgages and Loans – First Time Buyer Info

Types of Mortgages and Loans – First Time Buyer Info

Information on the various types of loans.  With tighter restrictions and lending guidelines, many of these loan programs are no longer available, or more difficult to obtain. Talk with a paperworklender to find the right loan for you.

ADJUSTABLE RATE Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.

BALLOON PAYMENT LOAN A fixed rate loan this is amortized over 30 years but becomes due and payable at the end of a certain term. May be extended or may roll-over into another type of loan.

BUY-DOWN LOAN Buy-Down loans are fixed rate loans where the interest rate and the payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment. A fixed rate loan for first time buyers with a low down payment, usually.

FHA LOAN: FHA loans are insured by the Federal Housing Administration under H.U.D. They offer a low down payment and are easier to qualify for than are Conventional loans.

FIXED RATE LOAN: Fixed rate loans have one interest rate that remains constant throughout the life of the loan.

GRADUATED PAYMENT MORTGAGE: A fixed rate loan that has payments starting lower than a standard fixed rate loan, which then increases by a pre-determined amount each year for a set number of years.

INTEREST ONLY LOAN:  The borrower only pays the interest on the mortgage through monthly payments for a term that is fixed on an interest-only mortgage loan. The term is usually between 5 and 7 years. After the term is over, many refinance their homes, make a lump sum payment, or they begin paying off the principal of the loan.

MORTGAGE CREDIT CERTIFICATE: A first time homebuyer program subject to purchase price and income limits. They are limited to Alameda, Contra Costa, San Mateo and Santa Clara counties. It is actually a special tax credit and assists the buyer in qualifying for many loan programs.

NON-QUALIFYING LOAN: Non-qualifying loans are pre-existing loans which can be assumed by a buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making the payments.

VA LOAN: VA loans are guaranteed by the Veterans Administration. A veteran must have served 180 days active service.

CONVENTIONAL LOAN: Conventional loans are sometimes more lenient with the appraisal and condition of the property. When you are buying a “fixer upper” you may need to use a conventional loan. Homes purchased above the FHA loan limit of $625,500 are usually financed with conventional loans.

Back to first time home buyer tips and information

Own Your Piece of the South Bay Lifestyle

https://youtu.be/SJcrcHl9U5Y

Recent Manhattan Listings

See all Manhattan Beach Homes for Sale

Recent Redondo Listings

See all Redondo Beach Homes for Sale

Your South Bay Realtor

Keith Kyle

Realtor, Top Producing Agent Since 2007

Top 1.5% of Realtors Nationwide 2021

310.251.2344 (cell/text) Keith@KeithKyleHomes.com DRE# 01718725

South Bay Real Estate

Search Our Site

Keith Kyle Homes logo
 
Manhattan Beach
Hermosa Beach
North Redondo
South Redondo
El Segundo
Torrance
Palos Verdes Estates
Rancho Palos Verdes
Hollywood Riviera
Hollyglen
Lawndale
Hawthorne
Gardena
Manhattan Village
Rolling Hills Estates
MB Sand Section
MB Tree Section
MB Hill Section
East Manhattan
Oceanfront Homes
The multiple listing data appearing on this website, or contained in reports produced therefrom, is owned and copyrighted by California Regional Multiple Listing Service, Inc. ("CRMLS") and is protected by all applicable copyright laws. All listing data, including but not limited to square footage and lot size is believed to be accurate, but the listing Agent, listing Broker and CRMLS and its affiliates do not warrant or guarantee such accuracy. The viewer should independently verify the listed data prior to making any decisions based on such information by personal inspection and/or contacting a real estate professional. The information being provided by CRMLS & CARETS is for the visitor's personal, noncommercial use and may not be used for any purpose other than to identify prospective properties visitor may be interested in purchasing. The data contained herein is copyrighted by CARETS, CLAW, CRISNet MLS, i-Tech MLS, PSRMLS and/or VCRDS and is protected by all applicable copyright laws. Any dissemination of this information is in violation of copyright laws and is strictly prohibited. Any property information referenced on this website comes from the Internet Data Exchange (IDX) program of CRISNet MLS and/or CARETS. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

 

Please see our pledge to web accessibility

  • El Segundo
  • Hermosa Beach
  • Three Sixty
  • Manhattan Beach
  • PVE
  • RPV
  • Redondo Beach
  • Torrance
  • Fusion