Loans & Programs

What They Are:
Loans not insured by the government — offered by private lenders like banks and credit unions.

Key Features:

Typically require higher credit scores (usually 620+)
Down payment as low as 3% (often 5–20%)
No mortgage insurance required if you put down at least 20%
More flexibility for second homes or investment properties
Best For:
Buyers with good credit and steady income who can afford a moderate down payment.

What They Are:
Government-backed loans designed to make homeownership accessible to more people.

Key Features:

Lower credit requirements (as low as 580)
Down payment as low as 3.5%
Mortgage insurance required (upfront & monthly)
More lenient on past financial issues like bankruptcy or foreclosure
Best For:
First-time buyers or those with limited credit or a smaller down payment.

What They Are:

Loans for active-duty service members, veterans, and some military spouses, backed by the VA.
Key Features:

No down payment required
No private mortgage insurance (PMI)
Competitive interest rates
One-time funding fee (can be rolled into the loan)

Best For: Eligible veterans and military personnel looking for a low-cost path to homeownership.

What They Are: Loans backed by the USDA to support homeownership in rural and some suburban areas.
Key Features:

No down payment required
Low interest rates and fees
Income limits based on area and household size
Home must be located in a USDA-eligible area Best For: Low- to moderate-income buyers in qualifying rural or suburban communities.

What They Are: Mortgages with a locked-in interest rate for the life of the loan (typically 15, 20, or 30 years).
Key Features:

Monthly payments stay the same — great for budgeting
Interest rate doesn’t change, even if market rates rise

Best For: Buyers planning to stay in their home for many years and who want predictable payments.

What They Are: Mortgages with a fixed interest rate for an initial period, then adjust periodically based on market rates.
Example: A 5/1 ARM has a fixed rate for the first 5 years, then adjusts every 1 year.
Key Features:

Lower initial interest rates than fixed-rate loans
Potential for lower payments — but also more risk
Rate caps limit how much the interest can increase annually or over the life of the loan

Best For: Buyers planning to sell or refinance within a few years, or those comfortable with some risk for lower initial payments.