Most American homes are mortgaged, with residential mortgage debt held by American banks totaling $11.18 trillion in the first quarter of 2022, according to information released by the Federal Reserve Bank of New York. The cost of American home ownership is also at an all-time high, with homeowners typically paying a hefty premium for joining a piece of the American dream. This is due to a major undersupply of available housing.

If you're in the market for a new home, there are a few things to keep in mind before you purchase. There are many different types of home mortgage loans available in the United States, plus two that aren't mortgages but are important in terms of American housing.

1. Conventional Mortgage

A conventional mortgage is any mortgage that you get without being part of a specific government program, according to the Consumer Financial Protection Bureau. They tend to cost less than government loans, but they're also harder to get.

2. Government Mortgage Loans

The FHA and VA loan programs deliver home mortgage loans specifically geared toward certain groups of homebuyers. FHA loans are for first-time homebuyers, and VA loans are geared toward homebuyers who are veterans of the United States Armed Forces.

3. Home Equity Loan

A home equity loan is a type of loan typically taken out with the value of your home as collateral. They're often used to finance home improvements. A home equity loan is a one-time loan with a declining balance. This is different from a home equity line of credit which, as its name suggests, is a revolving line of credit.

4. Down Payment Assistance Programs

This isn't a type of mortgage, but many home buyers struggle to come up with enough money for a down payment. The good news is, if you're a first-time home buyer, there are several different down payment assistance programs you should look into. These can come from the private or public sector, some are government based and some aren't. Talk to a loan officer to discover which assistance programs are best for you and your needs.

These are some of the many types of home mortgage loans available to people looking for new homes. Call Rick Valdez, Loan Officer, NMLS105548, Mortgage Express, LLC today to get started.