Different Types of Housing Loans

Different Types of Housing Loans k2 lending denver

When buying a home, most people require a home loan to do so. After all, a home is one of the biggest purchases most people will make in their lives. As such, it’s super important to find the right home loan for you.

K2 Lending has been helping people in the Denver metro area become homeowners since 2003. Our team has over 50 years of combined experience to bring you the best in mortgage lending solutions. We are passionate about what we do, and we work diligently to bring you the best financial solution for you. Below, we’ll take a brief look at the different types of housing loans. Contact our team to get started today!


Fixed-Rate Home Loan

A fixed-rate home loan (also called a conventional mortgage) is the most popular type of home loan. Typically, fixed-rate mortgages come in 15 or 30-year terms. They feature a fixed interest rate for the entire duration of your home loan. This makes for predictable home loan payments that don’t change. These types of loans do require a down payment.

Adjustable-Rate Home Loans

Adjustable-rate home loans (ARMs) feature an adjustable rate. Typically, the home loan is fixed for a certain amount of the loan (say, 10 years) and then, once that term has expired, the interest rate and payment will change based on current interest rates at the time. These home loans are popular for homebuyers with good credit because often the first interest rate offered will be lower than for a fixed-rate home loan. A down payment is also required for this type of home loan.

FHA Loans

FHA (or Federal Housing Administration) loans are backed by the federal government. These types of home loans are meant to help first-time homebuyers secure home ownership. They often require a smaller down payment than a conventional home loan. However, they often require mortgage insurance and have more specific stipulations as well to qualify.

VA Loans

If you’ve served in the military, you may qualify for a VA (Department of Veteran Affairs) home loan. This type of home loan is also backed by the federal government. However, they cannot be used for rental property purchases or for fixer-uppers. No down payment is required, and no mortgage insurance is required, either.

USDA Home Loan

A USDA (or United States Department of Agriculture) helps those Americans in rural areas become homeowners. You can finance up to 100% of the home’s purchase price (meaning there is no down payment required), and you can get discounted interest rates as well. However, you will need to purchase mortgage insurance and your debt-to-income ratio cannot exceed 41% to qualify.


If you are looking for the best mortgage lender in Denver, K2 Lending is your choice. We understand that a home purchase will most likely be your biggest purchase. We work hard to ensure you have the best home loan at favorable terms, so you can keep more money in your pocket. Call us for a free consultation today!