EXPLORE MORTGAGES TYPES

Simply flip through the various loan types to learn more about them. Then quiz yourself to test your memory!

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Conventional Loan

Conforming & Jumbo

A conventional loan is any loan other than a government insured loan (FHA or VA).  These can be both conforming (Fannie Mae/Freddie Mac) or Jumbo loans, which are made according to the investors specific guidelines and are typically offered to borrowers that are seeking loan amounts that exceed conforming limits. 

 5% Down   Low Initial Rates   Flexibility  Mortgage Payments May Increase

FHA Loan

Homeownership made easier

This loan from the Federal Housing Administration has a lower threshold for credit qualifying criteria than most conventional loans. FHA can be used for 1-4 unit properties, and you do not need to be a first-time homebuyer.  Available for purchase or refinance. 

 3.5% Down  Credit Score 600+
 Renovation loans

 Mortgage Insurance (5 yrs) 

VA Loan

Veterans and spouses

For qualified veterans, veteran spouses, and some active duty military home buyers.  They require ZERO down payment, however this loan must be used for the financing of a primary residence. The VA does charge a funding fee, but may be waived under certain circumstances. Available for purchase or refinance.

 0 Down   No PMI   Low Rates
 Funding Fee 

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Non-QM Loan

Non-qualified mortgage

A relatively newer type of loan to the market, the non-qualified mortgage is geared towards those who aren’t able to go the standard qualified route. However, borrowers must still prove their “ability-to-repay” the loan, but the lenders offering this type of product will accept alternative documentation.

 Alternative documentation   Higher Rates
 More Money Down

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Fixed-Rate Loan

Most common mortgage

Fixed rate loans are offered in terms ranging from 10 to 40 years.  The interest rate and payment remain fixed the entire term of the loan regardless of principal reduction. This structured “amortized” home loan is paid off at the end of the term and is likely why a fixed rate mortgage is the most common type of loan program. 

 Consistent Payment   No PMI
 Good Rates

 20% Down

ARM Loan

Adjustable-rate mortgage

Adjustable-rate mortgages have an interest rate that can vary during the term of the loan. ARMs typically include a low fixed rate for an initial period of time (like 5 yrs) before the rate fluctuates according to market conditions. So an ARM can be advantageous for those who expect to stay in the residence ten years or less.

 5% Down   Low Initial Rates   Flexibility
 Mortgage Payments May Increase 

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