Explore Your Loan Options
Every borrower and every home is different. Understanding the main loan categories helps you choose a structure that aligns with your goals, timeline, and financial position.
Understanding Loan Types
Loan programs are tools. Each one is designed to serve a different financial profile or homeownership goal.
Your loan originator will compare options side-by-side and explain the trade-offs clearly so you can make a confident decision.
Primary Loan Categories
Conventional Loans
Conventional loans are among the most common mortgage options and are well-suited for borrowers with stable income and solid credit.
- Flexible down payment options
- Available as fixed or adjustable rate
- Private mortgage insurance (PMI) may apply with lower down payments
- Often competitive interest rates
- Used for primary homes, second homes, or investment properties
FHA Loans
FHA loans are designed to provide more flexibility in qualification standards, particularly for buyers with limited credit history or smaller down payments.
- Lower minimum down payment requirements
- More flexible credit guidelines
- Mortgage insurance required
- Designed for primary residences
- Popular with first-time homebuyers
VA Loans
VA loans are available to eligible veterans, active-duty service members, and certain military spouses.
- No down payment for qualified borrowers
- No private mortgage insurance
- Competitive interest rates
- Flexible qualification standards
- Primary residence only
Jumbo Loans
Jumbo loans are used for properties that exceed conforming loan limits.
- Higher loan amounts available
- May require larger down payment
- Strong credit and financial reserves typically needed
- Available as fixed or adjustable rate
- Often used for higher-priced homes
USDA Loans
USDA loans are designed to support homeownership in eligible rural and suburban areas. Can be a strong option for buyers who meet location and income guidelines.
- No down payment for qualified borrowers
- Income eligibility requirements apply
- Property must be in an approved area
- Competitive interest rates
- Primary residence only
Interest Rate Structures
Once you choose a loan type, you'll also select how your interest rate is structured.
Fixed-Rate Mortgage
A fixed-rate loan keeps the same interest rate for the life of the loan.
- Stable, predictable monthly payment
- Protected from future rate increases
- Often preferred for long-term homeowners
- Available with multiple loan terms (15-year, 30-year, etc.)
Adjustable-Rate Mortgage (ARM)
An adjustable-rate loan starts with a fixed rate for a set period and then adjusts periodically based on market conditions
- Lower initial interest rate
- Rate adjusts after introductory period
- Monthly payments may increase or decrease
- Can benefit buyers with shorter ownership timelines
Not sure which loan type applies to you?
A short loan consultation will help clarify your next steps.
Additional Loan Types
Beyond traditional mortgage programs, there are specialized loan structures designed for unique financial situations or property goals. These options are more tailored and may not apply to every borrower.
Construction Loans
Construction loans finance the building of a home rather than the purchase of an existing property. Funds are typically released in stages as construction progresses.
Best for: Buyers building a custom home or purchasing new construction before completion.
- Short-term financing during the build phase
- Funds distributed in draws
- May convert to a permanent mortgage
- Requires detailed construction plans and timelines
Interest-Only Loans
Interest-only loans allow borrowers to pay only interest for an initial period before principal payments begin.
Best for: Buyers with irregular income, strong cash flow, or short-term ownership plans.
- Lower initial monthly payments
- Principal payments begin after introductory period
- Payment increases once principal repayment starts
- Requires comfort with future payment adjustments
Piggyback Loans
A piggyback loan combines two mortgages at the same time, often to reduce the need for private mortgage insurance (PMI).
Best for: Buyers with strong credit who want to minimize upfront down payment while avoiding PMI.
- Two loans structured together
- Can reduce PMI costs
- May lower required down payment
- Adds complexity to loan structure
Balloon Mortgages
A balloon mortgage offers lower payments for a set period, followed by a larger lump-sum payment at the end of the term.
Best for: Buyers who plan to sell or refinance before the balloon payment is due.
- Shorter loan term
- Lower initial payments
- Lump-sum payment required at maturity
- Higher risk if long-term plans change
Physician Loans
Physician loans are tailored for medical professionals with high earning potential but limited savings due to education debt.
Best for: Doctors, residents, and medical professionals early in their careers.
- Flexible student loan treatment
- Low or no down payment options
- No private mortgage insurance in some cases
- Designed around future income trajectory
Reverse Mortgages
A reverse mortgage allows eligible homeowners to convert part of their home equity into cash while remaining in the home.
Best for: Homeowners age 62 or older looking to supplement retirement income.
- No monthly mortgage payment required
- Loan repaid when home is sold or vacated
- Must meet age and equity requirements
- Designed for primary residences