Different loans fit different plans. Start here, then let’s compare the payment, upfront costs, and requirements for your situation.
01 / LOAN OPTIONS
Conventional
A flexible starting point for a home purchase or refinance.
Conventional mortgages are not insured or guaranteed by a federal government program. Conforming loans follow Fannie Mae or Freddie Mac requirements; other conventional loans have different lender rules.
Requirements depend on your credit, income, assets, property, and loan size.
Private mortgage insurance is usually required with less than 20% down.
A larger down payment is one option; preserving cash may matter to your plan, too.
Compare your down payment, monthly payment, and cash at closing.
VA-backed loans are available to eligible veterans, service members, and certain surviving spouses. A Certificate of Eligibility helps establish your service-related eligibility; the lender still reviews your finances and the property.
No down payment may be available, depending on entitlement, appraised value, and lender requirements.
VA loans do not require monthly mortgage insurance.
A funding fee may apply unless you qualify for an exemption; closing costs can still apply.
Check your eligibility before deciding how much cash to put down.
An option to compare when conventional financing is a tougher fit.
FHA loans are insured by the Federal Housing Administration. Qualification standards are generally more flexible than conventional loans, but your income, credit, down payment, and property still need to meet the applicable requirements.
FHA mortgage insurance adds to the cost of the loan.
The property must satisfy applicable FHA requirements.
Your required down payment and loan limit depend on the borrower, location, and program rules.
Look at the complete payment and mortgage insurance costs alongside other options.
Purchase financing for qualifying homes in eligible rural areas.
The USDA Guaranteed Loan Program helps eligible low- and moderate-income households finance a primary residence. Both the household income and the property location must qualify.
Eligible borrowers may qualify for no down payment.
An eligible location does not automatically mean the borrower qualifies.
No down payment does not mean no closing costs; ask for a full cash-to-close estimate.
Check the exact property address and household income first.
A different approach to documenting a more complex financial picture.
Non-qualified mortgages fall outside the Qualified Mortgage framework. Some programs consider alternative documentation for self-employed borrowers or other financial situations that don’t fit a standard loan file.
Depending on the lender and program, bank statements, assets, or investment-property cash flow may be considered.
Non-QM does not mean no documentation or automatic approval.
Rates, fees, down payments, and loan features can differ substantially from conventional options.
Ask which documentation options fit your situation, then compare the full cost and terms.
Access home equity through a revolving line of credit.
A home equity line of credit lets you borrow against available home equity up to an approved limit during a draw period. It may let you keep your existing first mortgage while adding a separate payment.
HELOCs usually have variable rates, so payments can change.
Payments may increase when the draw period ends and repayment begins.
Your home secures the debt; failure to repay can lead to foreclosure.
Review the combined payments, fees, and repayment plan before using your equity.
General program information, not a commitment to lend. Availability, eligibility, pricing, and terms depend on the borrower, property, lender, and applicable guidelines.
