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If you are dealing with a home loan, or deciding on which home loan is right for you, you will need some important information first. Knowing the difference between home loans is a start. The conventional home loan requires a 20 percent down payment and has a repayment schedule of 30 years. These loans have pros and cons, which you should examine before committing to the loan: Lender411: FHA vs. Conventional Loans.

FHA, the Federal Housing Authority, grants loans backed by the government. These loans have different qualifications than conventional mortgages and work well for millions of Americans: HUD.gov: Let FHA Loans Help You.

Though ARM -- or Adjustable Rate Mortgage loans -- have received significant bad press, these loans work well for certain situations. ARM loans are good choices for people who either expect their credit score to increase or their income to increase drastically in a short period of time. Mortgage X - Option ARM.

If you find that you are tempted to purchase a house beyond your financial capabilities, and you think you can do so through "creative financing" -- proceed with caution. Some of these loans carry significant risk, such as the inability to refinance at the end of an ARM at a decent rate.: Family Resource: The Specter of Creative Financing. Keep in mind that Homeowners’ insurance can be a significant part of your monthly bill. Before you purchase homeowners’ insurance, you need to make sure you are getting the best possible rate available: Federal Citizen Information Center: 12 Ways to Lower Your Homeowners Insurance Costs.

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