But in all the choices, there's probably one tailored to your budget, whether you're a first-time home buyer with a limited income or you're a longtime homeowner stepping up to one of our most luxurious homes. Hopefully the following information will be helpful.

• FHA loans
• VA loans
• Conventional loans
• Adjustable rate mortgages
• Special loan programs

You can now buy more house with a Federal Housing Administration loan.

A few points about FHA loans:

• Down payment: As low as 3 % on homes $50,000 or less and an average of 4.5 % on more expensive homes.
• Assumability: FHA loans are assumable, but if you sell your house, the buyer must also qualify with your lender.
• Loan terms: FHA loans are available in 15- and 30-year fixed as well as adjustable rates.
• Mortgage insurance: FHA requires a lump sum mortgage insurance charge of 2.25 % of the total loan amount, which can be financed with the loan, plus another 1/2 % charged as a monthly premium. In most cases, FHA mortgage insurance can't be canceled, but first-time buyers may get a discount if they go through new homebuyer counseling.
• Debt/income guidelines: Lenders typically allow up to 29 % of your gross monthly income to go to your new house payment. The maximum allowed total debt - house note plus car payments, loan payments, credit card debt, and child support - is 41 % of gross monthly income.

Points to consider about Veterans Administration loans:

• Down payment: None required
• Loan limit: $203,000
• Who's eligible: Active duty military or veterans with honorable discharge who have served at least 90 to 181 days. The time requirement depends on whether the service was wartime or peacetime. Reservists with no active duty time must have six years of service. Surviving spouses who have not remarried may be eligible if their spouse died as a result of service-connected injuries.
• Loan types: Fixed rates only
• Mortgage insurance: None required
• Funding fee: VA charges a one-time funding fee of 2 % of the loan amount - possibly higher if you've used your certificate of eligibility before, or lower if you make a down payment. The funding fee - insurance against default - can be financed with the loan. Disabled veterans may not have to pay the funding fee.
• Maximum monthly payment: The maximum allowed for your house note, plus monthly payments on other debt such as car loans, student loans, child support and credit card payments, is 41 % of your gross monthly income.

Things to consider about conventional mortgage loans:

• Down payment: The requirement has gone down from 20 percent a few years ago to the 5 percent typical today.
• Mortgage insurance: If you put less than 20 percent down, you'll have to pay a monthly private mortgage insurance premium, which could cost as much as $65 a month on a $100,000 loan with a 5 percent down payment. The larger the down payment, the cheaper the insurance. Once you have 20 percent equity supported by new property appraisal, you can drop the insurance.
• Debt/income guidelines: The monthly mortgage maximum is 28 % of gross monthly income and the maximum total current monthly debt - house note plus car note, minimum monthly installments note, child support and student loans - is 36 % of gross monthly income.

A few other points:

• There's a variety of fixed and adjustable rate conventional loan programs.
• Conventional loans typically are not assumable.
• Conventional rates may be about a 1/4 of a percentage point lower than FHA and VA rates but not always.
• If a home's sale price is above $214,600, the loan is called a jumbo loan and the interest rate may be 1/8 to 1/4 % higher.

Why an adjustable rate? You may be able to quality for a more expensive house because of the adjustable's lower starting interest rate. Or, maybe you expect to move in a few years and don't need the long-term security of a fixed rate.

There are a lot of products on the market, the most common are:

• 3/1, 5/1, 7/1 and 10/1 Adjustables. These have a fixed rate for the initial term only - 3 , 5, 7, or 10 years. At the end of the specified term, the rate adjusts once a year based on the U.S. Treasury index. Increases are usually capped at 2 % per year and 6 % for the term of the loan.
• One-year adjustable. These rates adjust annually. Advantage: Lowest starting rate of any loan, usually 1 1/2 points to 2 points below the 30-year fixed rate. Disadvantage: Riskier, because it may go up as much as 2 % a year to a maximum cap of 6 %.
• Balloons. The most common are 5/25, 7/23 and 10/20. There's one initial term rate (5, 7, or 10 years), and then the loan has a one-time adjustment for the remaining years of the mortgage.

Conversion: Some ARMS allow you to convert the mortgage to a fixed rate for a fee, usually $100 to $250. The fixed rate on an ARM conversion is typically 5/8 % higher than the current market rate.

• You must keep the ARM for 12 full months before converting. If you convert, you must do so between the 13th and 60th month of the loan.
• When to convert? When you desire stability or you've watched the market and believe rates are as low as they are going to go.

Shreveport-Bossier City lenders have an array of programs designed for special buyers - from first-time homebuyers to those who buy in rural areas.

Most programs allow a smaller down payment than traditional loans require and offer lower than market interest rates, but they often have maximum loan and maximum income limits.

Ask lenders if they participate in mortgage bond issues through the Louisiana Public Facilities Authority and the Louisiana Housing Finance Agency. LPFA has low-interest rate loans even if you're not a first-time homebuyer.

Ask about Fannie Mae's community homebuyer program. It usually allows higher-than-normal debt ratios if you complete an education class.

Many mortgage companies also have in-house education programs for nontraditional buyers.

First-time homebuyers may be able to buy a HUD-foreclosed property for $500 down.

Typically, a first-time homebuyer is identified as one who has not owned a home during the past three years.