Loan Type Guides
Understand your options, without the jargon.
Short, plain-language explanations of the loan types and terms you'll hear most. Read what's useful, skip what isn't.
Loan Type Primers
In-depth, advisor-written walkthroughs of each loan type: what they are, who they fit, and what to weigh. Tap any card to open the full primer.
Overview
Conventional loans are the most common mortgage type and are not backed by a government agency. They are originated by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac.
They're an excellent option for borrowers with stable income, established credit, and the ability to make at least a modest down payment.
Key highlights
- Down payments as low as 3% for qualified first-time homebuyers
- No upfront mortgage insurance premium
- PMI applies only when putting less than 20% down, and can often be removed later
- Available for primary residences, second homes, and investment properties
- Conforming and Jumbo options available
Things to consider
- Generally requires stronger credit than many government-backed programs
- Debt-to-income guidelines can be more restrictive
- Self-employed or variable-income borrowers may need additional documentation
Typical borrower profile
3% to 20%
- 620+ minimum for many programs
- Best pricing often begins around 740+
- Established credit
- Stable employment
- Moderate to larger down payments
- Repeat homebuyers
- Investment property purchases
Not sure if this loan is right for you?
Answer a few questions and we'll help you understand your best-fit options. No application required.
Loan program guidelines, interest rates, and eligibility requirements may change and vary by lender, location, and individual circumstances. Information provided is for educational purposes only and is not a commitment to lend or a guarantee of approval. Please consult a licensed mortgage professional for guidance specific to your financial situation.
Overview
FHA loans are government-insured mortgages designed to make homeownership more accessible, especially for first-time buyers and borrowers with limited savings or less-than-perfect credit.
Key highlights
- Down payments as low as 3.5% for qualified borrowers
- More flexible credit requirements than many conventional loans
- Higher debt-to-income ratios may be permitted
- Gift funds are allowed for the entire down payment
- Fixed and adjustable-rate options available
Things to consider
- Upfront Mortgage Insurance Premium (UFMIP) applies
- Monthly mortgage insurance is required
- Loan limits vary by county
- Property must meet FHA appraisal and safety standards
Typical borrower profile
3.5% minimum
- Generally 580+ for maximum financing
- Some lenders may require higher scores
- First-time homebuyers
- Buyers with limited savings
- Credit rebuilding borrowers
- Moderate-income households
Not sure if this loan is right for you?
Answer a few questions and we'll help you understand your best-fit options. No application required.
Loan program guidelines, interest rates, and eligibility requirements may change and vary by lender, location, and individual circumstances. Information provided is for educational purposes only and is not a commitment to lend or a guarantee of approval. Please consult a licensed mortgage professional for guidance specific to your financial situation.
Overview
VA loans are available to eligible veterans, active-duty military members, and certain surviving spouses. Backed by the Department of Veterans Affairs, they offer one of the strongest mortgage benefits available.
Key highlights
- No down payment for many eligible borrowers
- No monthly mortgage insurance
- Competitive interest rates
- Flexible credit guidelines
- Limited closing costs
Things to consider
- VA eligibility is required
- Funding fee may apply unless exempt
- Property must be owner-occupied
Typical borrower profile
0%
- Flexible credit guidelines
- Many lenders begin around 620+
- Veterans
- Active-duty military
- National Guard and Reserve members
- Eligible surviving spouses
Not sure if this loan is right for you?
Answer a few questions and we'll help you understand your best-fit options. No application required.
Loan program guidelines, interest rates, and eligibility requirements may change and vary by lender, location, and individual circumstances. Information provided is for educational purposes only and is not a commitment to lend or a guarantee of approval. Please consult a licensed mortgage professional for guidance specific to your financial situation.
Overview
USDA loans help eligible borrowers purchase homes in qualified rural and suburban communities with affordable financing backed by the U.S. Department of Agriculture.
Key highlights
- No down payment required
- Competitive fixed interest rates
- Reduced mortgage insurance costs
- Financing available up to 100% of the purchase price
Things to consider
- Property must be in an eligible USDA area
- Household income limits apply
- Owner occupancy required
Typical borrower profile
0%
- Generally 640+ for streamlined approval
- Lower scores may qualify with manual underwriting
- Rural homebuyers
- Suburban communities
- Moderate-income households
- Buyers with limited savings
Not sure if this loan is right for you?
Answer a few questions and we'll help you understand your best-fit options. No application required.
Loan program guidelines, interest rates, and eligibility requirements may change and vary by lender, location, and individual circumstances. Information provided is for educational purposes only and is not a commitment to lend or a guarantee of approval. Please consult a licensed mortgage professional for guidance specific to your financial situation.
Overview
Jumbo loans finance homes that exceed conforming loan limits. These loans are designed for higher-priced properties and borrowers with strong financial profiles.
Key highlights
- Higher loan amounts
- Primary, second home, and investment property options
- Fixed and adjustable-rate programs
- Portfolio lending flexibility
Things to consider
- Larger cash reserves may be required
- Strong credit is typically expected
- Income and assets receive additional review
Typical borrower profile
10%–20%+
- Typically 700–740+
- Luxury home purchases
- High-cost markets
- High-income borrowers
- Clients financing above conforming loan limits
Not sure if this loan is right for you?
Answer a few questions and we'll help you understand your best-fit options. No application required.
Loan program guidelines, interest rates, and eligibility requirements may change and vary by lender, location, and individual circumstances. Information provided is for educational purposes only and is not a commitment to lend or a guarantee of approval. Please consult a licensed mortgage professional for guidance specific to your financial situation.
Construction Loan
Coming soonFunding the journey from blueprint to finished home.
Renovation Loan
Coming soonRoll the cost of improvements into a single mortgage.
Loan Programs
The major programs, and who they tend to serve best.
Rate Structures
How your interest rate behaves over time.
Term Lengths
How long you take to pay the loan back.
Adjustable-Rate Options
The fixed period comes first, then it adjusts annually.
Not sure which fits you?
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