The conventional San Diego home loans are not insured or guaranteed by any federal government like the Federal Housing Administration (FHA), Rural Housing Service (RHA) or the Veterans Administration). Traditionally on conventional home loans were available, and now there are a number of other types of loans that would be helping you get a house. 

One of the very common conventional home loans are the fixed rate mortgage. By taking the fixed rate mortgage you get the loan at a particular interest rate which remains constant. These loans are for the period of 15-30 years. There are a number of advantages of taking up the fixed rate mortgage and the very first being, you will be paying the same amount of mortgage rate for the life of the loan. There is a schedule made according to which the homeowner has to pay the amount every month till the loan is in effect. The next type of mortgage loan that is preferred by many is the Adjustable rate. With the rise in the number of people buying home in the early decade, the adjustable rate mortgages gained its popularity. In the initial stage, the interest rate is quite low and thus, in the beginning the monthly rate also will be less. After a certain stage, say after five years, the interest rate adjusts and would increase.      

It is observed in the recent years that there were a number of owners who have failed to pay the interest when the adjustment is made and the interest increases. Because of this, there were a number of people loosing their homes. The adjustable rate mortgage is advisable if you are planning to stay in the house for a short period of less than five years.  Then there is the Balloon form of mortgage for the San Diego home loans. In this type of home loan, the owner needs to pay the amount on mortgage within the period of seven years. After the seven years, the left amount needs to be paid in lumpsum. If you think you will be able to pay off the lumpsum amount in the end, this type of mortgage would be the best option.  

Nowadays, unlike the olden days, there have been many special deals. The lenders are having a close study on the person they provide loans to. After this the person needs to pay a certain down payment. Determining the right amount of down payment is quite simple.