HomePurchaseLoan

A home purchase loan, also known as a mortgage, is a financial product designed to assist individuals or families in purchasing a residential property. This type of loan enables borrowers to borrow a substantial amount of money from a lender, typically a bank or mortgage company, to finance the purchase of a home. Home purchase loans are secured by the property being purchased, meaning that if the borrower fails to repay the loan according to the terms agreed upon, the lender has the right to foreclose on the property and sell it to recover the outstanding debt. Home purchase loans come in various forms, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and government-insured loans such as FHA loans, each with its own terms, interest rates, and repayment options.