Adjustable rate mortgages

ARM or adjustable rate mortgages would be a better choice for a borrower in this position. Adjustable rate mortgages are typically 2-3 percentage points lower than a fixed rate mortgage. If the borrower is a veteran, they may want to consider the VA government guaranteed home loans. This enables a veteran to purchase a house with zero money down, and if the veteran doesn't qualify for a conventional lender, the VA will on occasion make a home loan for people with bad credit directly to the veteran. The only catch is that once the veteran can qualify for assistance through a conventional lender, they are required to do so.