Find the RIGHT Mortgage Loan Program for YOU!
Explore a variety of loan programs designed to fit your unique financial situation and homeownership goals.
Find the Perfect Loan for Your Homeownership Goals
Choosing a mortgage loan can feel overwhelming, but it doesn’t have to be. We’re here to help you navigate your options and find the program that best fits your financial situation and unique goals. Whether you’re a first-time homebuyer or looking for your next investment, we have a variety of mortgage loan programs designed to make your homeownership dream a reality.
Conventional Loans
Conventional loans are the most common type of mortgage loan programs. These loans are not insured by the government and come in a variety of options, offering flexibility for a wide range of buyers. They are ideal if you have a strong credit history and a sizable down payment.
Key Features
Flexible Down Payment Options: While a 20% down payment is often recommended to avoid private mortgage insurance (PMI), many conventional mortgage loan programs now allow for down payments as low as 3-5%. This makes them more accessible to a wider range of borrowers, including first-time homebuyers.
Flexibility in Loan Types: Conventional loans offer a variety of choices, including:
Type 1 – Fixed-Rate Mortgages: The interest rate and monthly payment remain the same for the entire loan term, providing stability and predictability.
Type 2 – Adjustable-Rate Mortgages (ARMs): The interest rate is fixed for an initial period (e.g., 3, 5, 7, or 10 years) and then adjusts periodically based on market indexes. This can be a good option for borrowers who plan to sell or refinance before the fixed period ends.
Broader Property Use: Unlike government loans that are often limited to primary residences, conventional loans can be used to finance primary residences, second homes, and investment properties, offering greater flexibility for real estate investors.
Requirements
Stricter Credit and Financial Requirements: Conventional loans generally have higher credit score and debt-to-income (DTI) ratio requirements compared to government-backed loans. Lenders typically look for a credit score of 620 or higher, with the best interest rates reserved for those with scores above 740. A lower DTI ratio is also preferred to demonstrate your ability to manage monthly payments.
Private Mortgage Insurance (PMI): If you make a down payment of less than 20%, you will be required to pay for PMI. This is an insurance policy that protects the lender in case you default on your loan. A key advantage of conventional loans is that PMI can be canceled once your loan-to-value (LTV) ratio reaches 80% (meaning your home’s value is 20% more than what you owe). PMI is automatically canceled at78% LTV. This is different from FHA loans, where mortgage insurance may last for the life of the loan.
Debt-to-Income (DTI) Ratio
Your DTI ratio compares your total monthly debt payments to your gross monthly income. Lenders use this to assess your ability to manage a new mortgage payment.
Front-End DTI: This measures your proposed housing expenses (mortgage payment, property taxes, insurance, etc.) as a percentage of your gross monthly income. Lenders typically prefer this ratio to be below 28-36%.
Back-End DTI: This includes all your monthly debt payments (car loans, credit cards, student loans, etc.) plus your new housing expense. While some lenders may approve a DTI as high as 50%, a lower ratio is always better. The maximum DTI allowed by Fannie Mae and Freddie Mac is 50%.
Down Payment: The down payment requirement for conventional loans is flexible, but the amount you put down directly impacts your loan’s terms and costs. It’s possible to get a conventional loan with a down payment as low as 3%, particularly for first-time homebuyers.
Income and Employment History: Lenders want to see a stable and reliable income source.
Employment History: You will typically need to provide at least two years of stable employment history. Lenders require documentation such as W-2s, pay stubs, and tax returns to verify your income. Self-employed borrowers may need to provide additional financial documents.
Loan Limits: Conventional loans have limits on the maximum loan amount to be purchased by Fannie Mae and Freddie Mac. These are known as “conforming loan limits.” For 2025, the standard conforming loan limit for a single-family home is $806,500 in most areas of the United States. In areas with higher home prices, special high-cost loan limits may apply. If you need a loan that exceeds these limits, you would need a “jumbo loan.”
Government-Backed Loans
Government-backed loans are mortgages insured or guaranteed by a federal government agency. This backing reduces the risk for lenders, allowing them to offer more favorable terms to a broader range of borrowers who may not qualify for a conventional loan. The most common types are FHA, VA, and USDA loans.
Key Features
Flexible Qualification Requirements: Government-backed loans are designed to expand access to homeownership, so their qualification criteria are often more lenient than those for conventional loans.
Lower Credit Score: Borrowers can often qualify with a lower credit score than what is typically required for a conventional loan.
Lower Down Payment: Many of these loans have low or even no down payment requirements, which is a significant advantage for buyers who have limited savings.
Loan-Specific Purpose and Eligibility: Unlike conventional loans, which are widely available, each government-backed loan program has specific eligibility criteria and purpose.
FHA Loans: Insured by the Federal Housing Administration, these loans are designed for first-time homebuyers and those with lower-to-moderate incomes. They are known for their low minimum down payment of 3.5% and flexible credit requirements.
VA Loans: Guaranteed by the Department of Veterans Affairs, these loans are a benefit for eligible veterans, active-duty service members, and some surviving spouses. A major feature is the ability to purchase a home with no down payment and no private mortgage insurance (PMI).
USDA Loans: Backed by the U.S. Department of Agriculture, these loans are for low-to-moderate-income borrowers buying homes in eligible rural and some suburban areas. Like VA loans, they typically require no down payment.
Requirements
Occupancy: VA & USDA loans must be used for a primary residence only. FHA loans require the borrower intend to use the property as their primary residence for at least one year.
Mortgage Insurance or Funding Fees: While these loans have great benefits, they often come with their own form of insurance or fees to protect the lender and fund the program.
FHA Loans: Require both an Upfront Mortgage Insurance Premium (UFMIP) and an Annual Mortgage Insurance Premium (MIP). The MIP may be paid for the life of the loan unless a down payment of 10% or more is made.
VA Loans: Do not have a monthly mortgage insurance premium, which is a huge savings. However, they do have an upfront VA Funding Fee, which can be financed into the loan. This fee can be waived for veterans with service-connected disabilities.
USDA Loans: Have both an upfront guarantee fee and an annual fee. However, these fees are often less expensive than the mortgage insurance on an FHA loan.
Property Requirements: Government-backed loans often have specific requirements for the properties being financed to ensure they are safe, sanitary, and structurally sound. For example, a home being purchased with a VA or FHA loan must pass a specific inspection that verifies it meets minimum property standards.
USDA Location Requirements: The property must be located in a designated rural area as defined by the USDA. Surprisingly, this includes many suburban areas and towns with populations of up to 35,000, not just farmlands.
USDA Income Limits: Borrowers must have a household income that does not exceed 115% of the median income for the area where they are buying. These income limits are specific to the county and household size.
VA Loan Certificate of Eligibility (COE): This is a mandatory document that proves the borrower meets the service requirements for a VA loan. The COE verifies that the veteran or service member has an honorable discharge and the necessary service history.
Jumbo Loans
Looking to finance a high-value property? Jumbo loans are for mortgages that exceed the conventional loan limits set by the Federal Housing Finance Agency (FHFA). We offer competitive rates and terms to help you secure your dream home, even if it comes with a high price tag.
Key Features
Higher Loan Limits: The primary feature of a jumbo loan is its large size, allowing borrowers to finance luxury properties and homes in expensive real estate markets that would otherwise be out of reach with a conventional loan. In certain high-cost areas, the limit can be as high as $1,209,750.
No Private Mortgage Insurance (PMI): Because jumbo loans typically require a down payment of 20% or more, private mortgage insurance is usually not required.
Requirements
Stricter Qualification Criteria: Due to the increased risk for lenders, qualifying for a jumbo loan is more rigorous than for a conventional loan. Lenders want to ensure the borrower can handle a larger financial obligation. Common requirements include:
Higher Credit Score: Lenders often require a credit score of 700 or higher, with the most favorable terms reserved for those with scores above 740.
Larger Down Payment: While some lenders may accept as low as 10% down, most jumbo loans require a down payment of at least 20%.
Lower Debt-to-Income (DTI) Ratio: Borrowers generally need a DTI ratio below 43% to demonstrate their ability to manage the higher monthly payment.
Proof of Cash Reserves: Lenders typically require borrowers to show they have enough liquid assets to cover several months’ worth of mortgage payments, in addition to the down payment and closing costs.
Manual Underwriting: Unlike many conventional loans that use automated underwriting, jumbo loans often undergo manual underwriting. This means a human underwriter personally reviews all of the borrower’s financial documentation to assess the risk.
Specialty Mortgage Loan Programs
Specialty loans, often referred to as non-Qualified Mortgages (non-QM), are a category of mortgage products designed for borrowers who do not fit the strict, conventional lending guidelines set by government entities. They offer flexibility and alternative options for those with unique financial situations.
Key Features
Flexible Income Verification: This is the most defining feature of specialty loans. They are perfect for borrowers who have non-traditional or difficult-to-document income.
Bank Statement Loans: For self-employed individuals and small business owners, this type of loan allows a lender to review 12 to 24 months of business or personal bank statements to determine cash flow and a qualifying income, rather than relying on tax returns.
Asset-Based Loans: These loans qualify borrowers based on their assets (like stocks, bonds, or retirement funds) rather than their traditional employment income. This is a good option for retirees or high-net-worth individuals with limited income.
Higher DTI Ratios: Some non-QM loans allow for a higher debt-to-income (DTI) ratio than the typical 43% cap for qualified mortgages, accommodating borrowers with more existing debt.
Less Rigid Credit History: While a good credit score is still important, some specialty mortgage loan programs may be more flexible with borrowers who have had a recent bankruptcy, foreclosure, or other credit events that would typically disqualify them from a conventional loan.
Interest-Only Payments: Some loans allow for interest-only payments for an initial period, which can significantly lower the monthly payment. However, it’s important to note that the principal balance does not decrease during this time.
Longer Loan Terms: Some specialty loans may offer terms of 40 years, which can also help lower the monthly payment and increase the borrower’s purchasing power.
Investor and Foreign National Options: Specialty loans also cater to specific borrower types, such as real estate investors and non-U.S. citizens.
DSCR Loans (Debt Service Coverage Ratio): For real estate investors, these loans are approved based on the income of the investment property rather than the borrower’s personal income.
ITIN Loans: Designed for individuals who are not U.S. citizens or permanent residents and pay taxes using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number.
Requirements
Higher Interest Rates and Costs: Because specialty loans carry a higher risk for lenders, they typically come with higher interest rates and fees to offset that risk. Borrowers should be prepared for a slightly higher overall cost compared to a conventional loan.
Understanding Low and Zero Down Payment Mortgage Loan Programs
Saving for a large down payment is one of the biggest challenges for new homebuyers. Fortunately, there are several loan programs designed to help by requiring a low or even zero down payment. Each program has unique eligibility requirements and benefits.
Zero Down Payment Programs
These programs allow eligible borrowers to finance 100% of the home’s purchase price, eliminating the need for a down payment.
VA Loan: Backed by the U.S. Department of Veterans Affairs, this is a zero-down mortgage for eligible military service members, veterans, and surviving spouses. A major benefit is that it requires no private mortgage insurance (PMI), which can significantly lower monthly payments compared to other programs. Instead, a one-time VA Funding Fee is typically required, which can be financed into the loan.
USDA Loan: Offered by the U.S. Department of Agriculture, this is another zero-down mortgage option for low-to-moderate-income borrowers buying a home in a designated rural area. It is designed to encourage homeownership and economic development in these communities. While there’s no down payment, there is an upfront and annual mortgage insurance fee.
Low Down Payment Programs
These loans require a small down payment, typically 3% to 5% of the purchase price, making them much more accessible than the traditional 20% down payment.
FHA Loan: Insured by the Federal Housing Administration, this loan is a popular choice for first-time homebuyers or those with lower credit scores. It requires a down payment of just 3.5% for borrowers with a credit score of 580 or higher. The trade-off is that FHA loans have both an upfront and an annual mortgage insurance premium (MIP).
Conventional 97 Loan: This is a conventional loan option, backed by Fannie Mae and Freddie Mac, that allows a down payment as low as 3%. It’s primarily for first-time homebuyers. With a down payment under 20%, you will be required to pay private mortgage insurance (PMI), but PMI on a conventional loan can be cancelled once you reach 20% equity in the home.
HomeReady® / Home Possible®: These are specific conventional loan programs, backed by Fannie Mae and Freddie Mac, respectively. They offer down payments as low as 3% and have more flexible income and credit guidelines for low-to-moderate-income borrowers.
Compare Mortgage Loan Programs at a Glance
Here is a comprehensive comparison of various mortgage loan types, highlighting key features such as minimum down payment, credit score requirements, mortgage insurance fees, and more, to help you understand which program might be the best fit for you.
|
Feature/Requirement |
Conventional |
Jumbo |
FHA |
VA |
USDA |
DSCR |
Bank Statement |
Asset Depletion |
ITIN |
|---|---|---|---|---|---|---|---|---|---|
|
Min Down Payment |
As low as 3% for some programs (e.g., for first-time buyers). 5% is common. |
Typically 10-20%, but can be higher depending on the loan amount. Some lenders offer as low as 5% with strong credit. |
3.5% with a credit score of 580+. 10% with a score of 500-579. |
0% |
0% |
Typically 20-30% |
Typically 10-20% |
Varies, but often 10-20% |
Typically 10-25% |
|
Credit Score Requirement |
Generally 620+. Higher scores (680+) get better rates. |
Generally 700+, with the best rates and terms reserved for scores of 740+. Some programs allow scores as low as 660. |
580+ for minimum down payment. 500-579 with a 10% down payment. |
No set minimum by VA, but most lenders require 620+. |
Generally 620+ |
660+; focus is on the property’s cash flow, but credit is still checked. |
620-660+ depending on the lender and program. |
660-700+; asset-based so credit is less critical but still a factor. |
Typically 640+ |
|
Mortgage Insurance Requirements/Fees |
Private Mortgage Insurance (PMI): Required for down payments less than 20%. Can be cancelled once 20% equity is reached. |
No PMI if the down payment is 20% or more. With a smaller down payment, some lenders may require PMI or offer a “piggyback loan” (second mortgage) to avoid it. |
Mortgage Insurance Premium (MIP): Upfront MIP (1.75% of the loan amount, can be financed) and an Annual MIP (paid monthly). MIP can be permanent for life of loan with small down payment. |
No PMI/MIP. Instead, a one-time VA Funding Fee is required (can be financed). Fee is waived for disabled veterans. |
Upfront Guarantee Fee (1% of loan amount, can be financed) and an Annual Fee (0.35% of remaining balance, paid monthly). |
No PMI/MIP required. |
No PMI/MIP required. |
No PMI/MIP required. |
No PMI/MIP required. |
|
Target Borrower |
Borrowers with strong credit and stable income. Best for those with 20% to put down to avoid PMI. |
High-income or high-net-worth individuals buying a home that exceeds the conforming loan limit. |
First-time homebuyers or those with lower credit scores and limited funds for a down payment. |
Eligible veterans, active-duty service members, and surviving spouses. |
Low-to-moderate-income buyers in a USDA-designated rural area. |
Real estate investors who want to finance a rental property based on its rental income, not their personal income. |
Self-employed borrowers or business owners who may not show enough income on tax returns. |
Retirees or high-net-worth individuals who have significant liquid assets but little to no traditional income. |
Borrowers who have an ITIN and are not eligible for an SSN. |
|
Income Requirements |
Verified with W-2s, pay stubs, and tax returns (2-year history required). |
Strict verification with W-2s, pay stubs, and tax returns (2-year history required). Lenders also often require significant liquid cash reserves (e.g., 6-12 months of mortgage payments) after closing. |
Verified with W-2s, pay stubs, and tax returns. More flexible than conventional. |
Verified with standard documentation; VA also uses a “residual income” calculation. |
Strict household income limits determined by location and household size. |
No personal income required or verified; based purely on the property’s cash flow. |
Verified using 12-24 months of bank statements to determine qualifying income. No tax returns required. |
Based on liquid assets, which are “depleted” over the loan term to calculate a qualifying income. No traditional income needed. |
Verified with bank statements or tax returns. |
|
DTI Requirements |
Max DTI is typically 43-45%, though some programs allow up to 50% with compensating factors. |
Max DTI is generally stricter, typically at or below 43%, though some lenders may go slightly higher with a strong credit profile and large reserves. |
Max DTI is typically 43-50%. More flexible than conventional with compensating factors. |
Max DTI typically 41%, but compensating factors can allow higher ratios. |
Standard DTI requirements apply. |
N/A; qualification is based on the property’s rent covering the mortgage payment. |
Varies by program, but generally around 43-50% based on the bank statement income calculation. |
N/A; the qualification is based on assets, not DTI. |
Typically around 45-50% max DTI. |
|
Fixed Rate or Not |
Both fixed and adjustable-rate mortgages (ARMs) are available. |
Both fixed and adjustable-rate mortgages (ARMs) are available. |
Both fixed and adjustable-rate mortgages (ARMs) are available. |
Both fixed and adjustable-rate mortgages (ARMs) are available. |
Both fixed and adjustable-rate mortgages (ARMs) are available. |
Both fixed and adjustable-rate options are common. |
Typically fixed rates, but ARMs may be an option. |
Typically fixed rates, but ARMs may be an option. |
Typically fixed rates, but ARMs may be an option. |
|
QM or non-QM |
Qualified Mortgage (QM). |
Non-Qualified Mortgage (non-QM). |
Qualified Mortgage (QM). |
Qualified Mortgage (QM). |
Qualified Mortgage (QM). |
Non-Qualified Mortgage (non-QM). |
Non-Qualified Mortgage (non-QM). |
Non-Qualified Mortgage (non-QM). |
Non-Qualified Mortgage (non-QM). |
|
Loan Limit |
2025 Conventional Loan Limit (most areas): $806,500 for a single-unit property. Higher in high-cost areas. |
Exceeds the conforming loan limit ($806,500 in most areas for 2025), with some lenders offering loans for up to $3-5 million or more. |
2025 FHA Loan Limit (most areas): $524,225 for a single-unit property. Higher in high-cost areas. |
No set limit for borrowers with full entitlement. |
No set limit; max loan amount depends on repayment ability. |
No set limit, varies by lender and the property’s value. |
No set limit, varies by lender and a percentage of the property value. |
No set limit, varies by lender and asset amount. |
Varies by lender. |
|
Special Requirements |
Stricter underwriting, often requires more comprehensive documentation. |
Often requires two appraisals on the property and extensive documentation of income, assets, and cash reserves. |
Property must meet specific FHA appraisal standards (e.g., no peeling paint, good condition). |
Must obtain a Certificate of Eligibility (COE); property must meet VA’s Minimum Property Requirements (MPRs). |
Property must be in a USDA-designated rural area and meet property standards. |
The property’s projected rent must be greater than its projected mortgage payment (DSCR > 1). |
12-24 months of personal and/or business bank statements. |
Must have significant, verifiable liquid assets (e.g., cash, stocks, bonds) to qualify. |
Must have a valid ITIN, higher down payment and interest rates may apply. |
|
Occupancy |
Primary residence, second home, or investment property. |
Primary residence, second home, or investment property. |
Must be the borrower’s primary residence. |
Must be the borrower’s primary residence. |
Must be the borrower’s primary residence. |
Primarily for investment properties. |
Primary residence, second home, or investment property. |
Primary residence, second home, or investment property. |
Primary residence, second home, or investment property. |
|
Key Considerations |
Lower rates for strong credit. PMI can be avoided/removed. |
Ideal for financing luxury properties. Requires a strong financial profile and extensive documentation; interest rates can be higher than conventional loans. |
Lower credit score & down payment requirements. MIP is often permanent. |
0% down payment, no PMI. Funding fee may be costly but can be financed. |
0% down payment. Can be more affordable for eligible borrowers. |
Perfect for investors seeking no-doc loans. Rates are typically higher than conventional loans. |
Designed for self-employed. Potentially higher interest rates and fees. |
Ideal for retired or high-net-worth individuals. Rates can be higher. |
Offers a path to homeownership for ITIN holders. Higher rates and down payments are common. |