Normal Fixed Rate Conventional Mortgage A fixed-rate conventional mortgage is usually written for 15 or 30 years. Rates are not set by law and each lender may or may not require points. An adjustable-rate conventional mortgage is usually written for a 15 or 30 year term. Each lender may set their own interest rate and points. The Veteran's Administration makes federally guaranteed loans available for eligible veterans and requires no down payment for loans up to a limit set by law.
Higher loans require some down payment.
The Federal Housing Administration under HUD insures 30-year loans at fixed and adjustable interest rates. The rate is not set by law anymore. As with the conventional loans, each lender sets their own rates. The points charged by the lender can be paid by the buyer, seller, or split between the parties. The loan requires a mortgage insurance premium which the buyer may pay in cash at settlement or may finance.