Having acceptable credit, of course, is a key element but structuring home loans can take many forms depending upon conditions.

Traditional loans

If you are a first time home buyer or a seasoned home owner you are likely aware of the traditional 30 year fixed rate home loan. Mom and Dad had one and Grandma and Granddad had one. In the past, there were very few options in the home loan marketplace. Today, the traditional 30 year fixed rate home loan still exists and has even had a bit of a twist put into it. In recent years, many people are opting for a 15 or 20 year fixed rate deal to reduce interest costs. The idea of a traditional home loan is to have predictability in payments so a subtle shift to a shorter term is a big thing.

Variable rates

In the past, the variable rate loans were for real risk takers. It still does have a certain amount of risk associated with it but, generally, it can be a very sound way to go. The only real need is that you have the right set of circumstances working in your favor. With a variable rate home loan the interest rate is initially lower than a fixed rate loan for a set period of time (usually 3, 5 or 7 years.) After this period the interest rate changes as interest rates change.

The variable rate home loan is a solid choice if you are planning to not be in your home for very long, say 3-5 years. The thing to consider, however, is that if economic conditions turn south you may end up having higher monthly payments down the road. In this instance, a stable and well paying employment situation is a good thing.

A custom home loan

Offerings of home loans have progressed to a point where many lenders are offering an entire grocery basket of loan types for just about any borrower. Low down payments, interest only plans and sub-prime interest rates are just a few of the home loans being offered to the consumer. Each has advantages and disadvantages for the consumer and care needs to be exercised.

Several of these types of loans are geared for those that may have issues with making a significant down payment or those that would like to lower monthly payments. There really is no end to the type of custom home loans available to the customer.

Finding the right lender is the key. If they ask allot of questions about your finances they should be able to tailor a home loan package to your needs. Being upfront about what your financial situation is and what you'd like to accomplish will go a long way in finding the right home loan for you. The market is ready to lend.