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The first question to answer before launching your own unique house plans search is how you are going to finance the job. Here is some basic information on mortgages - what they are and what kinds are available. Fundamentally, mortgages are long term loans which use real estate for collateral. Mortgage loans are commonly employed for buying or building homes. Usually mortgage loans are fully amortizing; i.e., the monthly interest and principle payment pay the loan off in however many payments are specified on the note. Mortgage loans can also be described by the length of the repayment period, such as fifteen, thirty, or forty years; and whether the interest rate is adjustable or fixed. Mortgage loans where the down payment is less than 20% often require private mortgage insurance, government insurance, or a guarantee. The majority of mortgages require monthly payments of interest and principal, as well as payments for property taxes and homeowner's insurance.

Although in today's tight credit market it is becoming rarer, some lenders continue to offer nontraditional mortgages such as interest-only mortgages in which the borrower only pays accrued interest but not the principal or optional mortgages in which the borrower can choose each month whether to make the minimum payment, only the accrued interest payment or the accrued interest payment together with part of the principal. Borrowers opting for nontraditional open house plans mortgages should be aware that sudden changes in interest rates or payment terms can significantly alter the monthly payment due. Therefore, the buyer should take pains to understand in detail the terms of the loan. Borrowers who can afford larger monthly payments usually prefer fifteen year mortgages to thirty year mortgages, since the interest rates on shorter loans are lower. Financing a home with a fifteen year mortgage repays the principal much faster, and requires a lower total interest payment over the period of the loan.

Conventional mortgages, whether for single-family dwellings or investment properties such as duplex house plans, are not insured by the government. If the down payment is less than 20%, private mortgage insurance (which protects the lender in the event that the borrower defaults) is usually required. To obtain more information on conventional mortgage loans, check out the Fannie Mae and Freddie Mac websites, since these agencies are the principal purchasers of conventional mortgages. Note that these agencies do not directly lend money; rather, they purchase mortgages which have already been extended to borrowers. The main governmental guarantor of mortgages is the Federal Housing Administration (FHA). This agency provides several mortgage insurance programs for low down payment mortgages which usually require the borrower to make a 3.5% contribution to the down payment. FHA insured mortgages are available from the same lenders which offer conventional mortgages. Veterans, reservists, or those on active military duty have the option of obtaining VA (Department of Veterans Affairs) mortgages, which require little or no down payment. If you are located in a rural area, you might qualify for a U.S. Department of Agriculture Rural Housing Service (RHS) mortgage. These are direct loans with reduced rates of interest, to help low-income rural borrowers. Additionally, State Housing Finance Agencies provide HFA loans to veterans and first-time home owners with below-market rates of interest.

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