If you're looking to buy a home but don't have enough cash to pay the whole amount upfront, mortgage loans are your go-to-go option. There are different types of mortgage loans you can choose from depending on your needs. Here are four of them. 

The Fixed-Rate Mortgage

This is one of the most popular financing options. At the beginning of your loan, the lender offers you a specific monthly payment and interest rate. That payment and interest rate will remain fixed throughout the entire duration of the loan. Typically, this loan comes in terms of 10, 15, or 30 years.

If you operate on a monthly budget, a fixed-rate mortgage may suit you best since your monthly expenses will remain constant. Besides, if you buy when the rates are low, you get to lock in that rate even when the broader industry's interest rates rise.

Adjustable-Rate Mortgage (ARM)

Unlike fixed-rate mortgages, these types of home loans have fluctuating interest rates that can rise or go down with market conditions. In most cases, they have a fixed interest rate in the first few years before changing to a variable rate for the remaining term. Your lender checks a predetermined index to determine the changes in your rates. If the index's market rates rise, your rates go up, and vice versa. 

To avoid getting into financial trouble, look for an ARM with rate caps. That way, even if the market's interest rates rise, you won't pay beyond the rate caps. 

Government-Insured Loans

While the government in the United States isn't a mortgage lender, it can fund your home purchase through its agencies. The three types of government-insured home loans are the Federal Housing Administration (FHA) loans, the U.S. Department of Veterans Affairs (VA) loans, and the US Department of Agriculture (USDA) loans. 

FHA loans are availed through mortgage insurance and are ideal for first-time homebuyers. You can qualify for this loan with a down payment of 3.5% and a credit score of as low as 580. 

VA loans are given to former U.S. veterans or spouses to deceased veterans. A down payment isn't required, while the closing costs are usually capped and even paid by the seller. The qualification for this loan depends on various factors, like the years of service and whether the discharge was honorable.

USDA loans are offered to moderate-to-low-income persons, and most of them don't have a down payment. To qualify, you need to meet certain income limits and buy a home in a rural or suburban area. 

Jumbo Loans

These loans have non-conforming limits. They're ideal when buying a high-value property that exceeds federal loan limits. For example, in 2021, the maximum loan limit in most U.S. Parts is $548,250 but can rise as high as $822,375 in high-cost areas. 

To qualify for jumbo mortgage loans, you need a lower DTI and a high credit score. This means they're more difficult to get than other mortgage loans.