A home loan is a type of loan that allows individuals to borrow funds to purchase a property. It is provided by financial institutions such as banks or credit unions and is secured by the property being purchased. Home loans are typically offered for residential properties, such as single-family homes or condominiums. The loan amount is based on the property’s value, the borrower’s creditworthiness, and the lender’s guidelines.

Home loans come in different varieties, including fixed-rate loans, adjustable-rate loans, and jumbo loans. Fixed-rate loans have the same interest rate for the entire loan term, while adjustable-rate loans have a variable interest rate that may change periodically. Jumbo loans are for larger loan amounts, typically exceeding the conforming loan limits set by Fannie Mae and Freddie Mac.