Conventional Loans
The most common type of mortgage, conventional loans typically require a higher credit score, low debt-to-income ratio, and a down payment—often 20%, though lower down payments are possible with private mortgage insurance (PMI). Fixed-rate conventional loans lock in your interest rate for the life of the loan, giving predictable monthly payments.

Adjustable-Rate Mortgages (ARM)
ARMs start with a lower interest rate than conventional loans, but the rate can adjust periodically based on market conditions. They are best for buyers who plan to sell or refinance within a few years. ARMs generally require good credit, a low DTI, and a down payment.

USDA Loans
USDA loans are designed for rural or some suburban homebuyers. They don’t require a down payment or PMI, but the property must be in an eligible area and the borrower must meet income and credit requirements.

VA Loans
VA loans are available to veterans, active-duty military, members of the National Guard, and some surviving spouses. These loans require no down payment or PMI, but there is a funding fee. VA loans are intended for primary residences and include guidelines for move-in timelines.

FHA Loans
FHA loans are ideal for buyers with lower credit scores or limited funds for a down payment. You can put down as little as 3.5%, but most FHA loans include mortgage insurance for the life of the loan.

Jumbo Loans
Jumbo loans are used for high-value properties that exceed conventional loan limits. They generally have similar qualification standards to conventional loans but allow you to borrow larger amounts.

Choosing the Right Loan
Every homebuyer’s situation is unique. Talk to a lender to review your credit, income, and goals to determine which mortgage is the best fit for your new home purchase.