instruction: What are the different types of loan or mortgage products for home buyers in the U.S.?
response: It is crucial to understand all your financing options when considering buying a new home. Some of the most common loan types for residential home buyers are listed below:
  
  1. Conventional Loans: The most common home loan type that is not insured or guaranteed by the government. While it typically requires 20% down payment, you can put as little as 5% down.
  2. VA Loans: This is offered by the U.S. Department of Veterans Affairs for people who have served in the military as well as their spouses. It requires no down payment and is an amazing option for anyone who is eligible.
  3. FHA Loan: A mortgage insured by the Federal Housing Administration. First time home buyers find these loans very attractive due to the small down payment requirements of just 3.5% and the flexible credit requirements. Additionally there are children products to this loan vehicle including the FHA 203k loan which can help those purchasing distressed properties by funding the renovations, within certain predetermined guidelines.
  4. Adjustable-Rate Mortgage (ARM): With this product, your interest rate varies over time depending on market and economic conditions. These seem attractive initially as they typically start with lower rates than fixed-rate mortgages but can increase over time.
  5. Fixed-Rate Mortgages: This interest rate is locked in at the start of the loan and starts the same throughout the entire term.
  7. USDA Loan: Guaranteed by the U.S. Department of Agriculture and eligible to suburban and rural homebuyers. This loan product also doesn't require down payment and has lower mortgage insurance requirements than an FHA loan
  
  While these are the most common loan types, other options tend to appear from time to time. It is important to do your research and pick the product that best suits your individual needs and long-term financial goals. To help better understand these options many aspiring buyers reach out to local loan providers, real estate agents, and brokers.