Whether you want to buy a car, house or business, or you need to
consolidate debt, the right lender can help you achieve your financial
goals. Evaluate several options before signing any paperwork to make
sure the loan company you choose to work with will help you improve your
financial situation.
Types of loans
Car loans
Auto
loans are available for both new and used cars, and consumers can
obtain car loans from banks and credit unions as well as most auto
dealers.
Home loans
Home
loans, or mortgages, are available to help people finance their homes.
Conventional mortgages usually require the borrower to have a down
payment for 20 percent of the purchase price.
Home equity loans
If you own a home, you might be able to take cash out of your home with a home equity loan to finance a remodel or fund another major purchase.
FHA loans
Many
private lenders work with the Federal Housing Authority to offer FHA
mortgages. These loans require a much smaller down payment than
conventional loans.
VA loans
Armed
service veterans, current service members and their spouses may qualify
for a Veterans Affairs (VA) mortgage. These home loans have a very low
down payment, and borrowers aren’t required to purchase mortgage
insurance.
Student loans
Those
who want to attend college can take out a student loan to help cover
the cost. The two types of student loans available are federal and
private.
Debt consolidation loans
Debt
consolidation loans are used to help people manage their debt. Multiple
loans are combined into one loan with a single monthly payment, usually
with a lower interest rate.
Business loans
Those wishing to open a business or expand their current business can take out loans to finance their ventures.
Secured vs. unsecured loan
Secured loans
Secured loans rely on an asset (such as a car, a home or a boat) that will be used as collateral for the loan.
Unsecured loans
Unsecured
loans are more difficult to qualify for and have higher interest rates
because an asset for collateral is not required. These are sometimes
called personal loans.
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