Conventional loans usually are more lenient with respect to the appraisal and condition of the property. If you are purchasing a "fixer-upper", you may need to use a conventional loan. Also, expensive homes above the FHA loan limit of $116,800 are generally financed with conventional loans.

FHA Loans are insured by the Federal Housing Administration under H.U.D. They usually require less downpayment than conventional loans and are easier to qualify for.

VA Loans are guarenteed by the Veterans Administration. A veteran must have served 180 days active service. VA loans can be done with a zero down payment.

Fixed Rate Loans have one interest rate which is fixed for the entire term of the loan.

Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index. Some ARM programs fix the interest rate for an initial period of two to five years, and adjust the rate thereafter at pre-determined intervals.

Non-qualifying loans are pre-existing loans which can be assumed by a buyer from the seller of a property. Without going through the qualifying process, the buyer pays the seller for his/her equity and then starts making payments.