There are a number of different types of home loans available to you, and it can pay to familiarize yourself with them. Luckily we're here to help you choose the best type of home loan for your needs.
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The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan's lifetime.
Adjustable-rate mortgages include interest payments which shift during the loan's term, depending on current market conditions. Typically, these loans carry a fixed-i...
Interest only mortgages are home loans in which borrowers make monthly payments solely toward the interest accruing on the loan, rather than the principle, for a specif...
Graduated Payment Mortgages are loans in which mortgage payments increase annually for a predetermined period of time (e.g. five or ten years) and...
A conventional loan is a type of loan that is not insured by the government. Conventional loans offer more flexibility and fewer restrictions for borrowers, especially those borrowers with good credit and steady income.
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no ...
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $766,550 in...
A DSCR (debt service coverage ratio) loan, or Investor Cash Flow loan, is a non-QM loan that allows you to qualify for a home loan without relying on personal income. DSCR loans are perfect for real estate investors who can secure a real estate loan based on their rental property's cash flow.
A bank statement loan is a mortgage that allows borrowers to qualify for a loan based on their bank statements instead of tax returns, W2s or pay stubs. This type of loan is often used by self-employed clients, small business owners, or independent contractors who may not have traditional pay stubs.
A rehab loan, also known as a renovation loan, is a type of loan that can be used to finance the purchase and renovation of a property. Rehab loans can be used for a variety of projects, including: Fixing a leaky roof, Updating plumbing, adding an extra room or general remodels.
A home equity loan (HEL) is a loan that allows you to borrow money using the equity in your home as collateral. The equity in your home is the difference between the amount your home is worth and the amount you still owe on your mortgage.
A USDA loan is a home loan from the United States Department of Agriculture that can help low and moderate income families buy, build or renovate a loan in a rural or suburban area. Financing options offered up to 100% of the purchase price or value of the home.
Down payment assistance (DPA) is a program that provides grants or loans to help first time homebuyers with their down payment or closing costs. DPA programs are available from a variety of organizations, including state and local government, nonprofits, banks, credit unions and mortgage lenders.
A new construction loan is a short-term loan that finances the construction of a new home, including the cost of land, labor, materials and permits. Construction loans are different from mortgages, which are used to purchase a complete home.
A bridge loan is a short-term loan that provides funding until you can get a permanent financing or pay off debt. It is often used to purchase a new home while selling your current home. Bridge loans typically last 6 months to a year and are convenient if you have to make a fast move and not rely on your current home selling.