Conventional Loans
These loans are not insured by the federal government. They typically offer fixed or adjustable rates and are ideal for borrowers with good to excellent credit. Down payments can range from 3% to 20% depending on the lender.
FHA Loans
Backed by the Federal Housing Administration, these loans are designed for first-time homebuyers and those with lower credit scores. They require a lower down payment (as low as 3.5%) and have more flexible credit score requirements.
VA Loans
Available to veterans, active military members, and certain members of the National Guard and Reserves. VA loans offer no down payment, no mortgage insurance, and competitive interest rates. They are guaranteed by the U.S. Department of Veterans Affairs.
USDA Loans
Designed for rural property buyers, USDA loans offer zero down payment for eligible borrowers. They are backed by the U.S. Department of Agriculture and require proof of income eligibility based on location and family size.
Jumbo Loans
These are non-conforming loans that exceed the limits set by Fannie Mae and Freddie Mac. Jumbo loans are used for high-value properties and typically require a larger down payment and higher credit scores.
Fannie Mae HomeReady®
This program is for low-to-moderate income borrowers who want to make a smaller down payment (as low as 3%). It allows for flexible sources of down payment funds and lower mortgage insurance costs.
Freddie Mac Home Possible®
Similar to HomeReady, this loan option offers low down payment options and flexible underwriting for low-income borrowers.
Reverse Mortgages
Available to homeowners aged 62 or older, reverse mortgages allow individuals to convert part of their home equity into cash without having to sell their home or pay monthly mortgage payments.
Renovation Loans
Programs like FHA 203(k) loans enable buyers to finance both the purchase of a home and the cost of renovations with a single mortgage.
New Construction Loans
These loans are specifically for financing the construction of a new home. They typically involve a short-term loan to cover construction costs, followed by a mortgage once the home is completed.
High Balance Loans
For buyers in high-cost areas, these loans exceed the conforming loan limits but still have slightly lower rates than jumbo loans.
Condo Loans
Designed for purchasing condominiums, these loans may have different requirements and guidelines compared to traditional home loans.
Interest-Only Loans
These allow borrowers to pay only the interest for a specified period, resulting in lower initial payments. However, borrowers must be cautious as payments will increase significantly once the interest-only period ends.
