There are a number of different types of home loans available to you, and it can pay to familiarize yourself with them. Luckily we're here to help you choose the best type of home loan for your needs.
Get Started
A conventional loan is a type of loan that is not insured by the government. Conventional loans offer more flexibility and fewer restrictions for borrowers, especially those borrowers with good credit and steady income.
FHA loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates, no down payment and no monthly mortgage insurance.
USDA loans are zero-down-payment mortgages for home buyers in eligible towns and rural areas. USDA loans are guaranteed by the USDA Rural Development Guaranteed Housing Loan Program, a part of the U.S. Department of Agriculture. In addition to having no down payment requirements, USDA home loans often also have lower rates than conventional mortgages. And USDA loans don’t require borrowers to pay for traditional private mortgage insurance, or PMI. USDA loans can be a great tool to unlock homeownership for qualified borrowers. However, buyers have to meet certain requirements, including purchasing property within specific areas outlined by the agency.
Down payment assistance is provided in the form of a grant or loan to cover some or all of the required down payment and closing costs that exist when buying a home. Assistance is offered by state or local housing agencies, nonprofits or lenders. Down payment assistance programs are geared toward first-time homebuyers and/or low-to-moderate income borrowers to encourage homeownership and increase mortgage affordability.
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $766,550 in most counties, as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan.
Construction loans are loans that cover the costs of building a residential home, including the land purchase to the finished structure. Constructing a home from scratch can be a great opportunity to build the home that is exactly what you are looking for.
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan's lifetime.
Adjustable-rate mortgages include interest payments which shift during the loan's term, depending on current market conditions. Typically, these loans carry a fixed-i...
Interest only mortgages are home loans in which borrowers make monthly payments solely toward the interest accruing on the loan, rather than the principle, for a specif...
