Conventional Mortgage

This is your standard bread-and-butter mortgage. It’s the most popular type of mortgage out there, and for good reason. It’s simpler than many other loans, your interest rate stays the same, and you have an option between 30-year and 15-year terms.

Benefits You’ll Love

• Consistent monthly payments based on principal, interest rate, and amortized interest over the life of the loan (monthly payments may include taxes and insurance)

• Pay off your mortgage at any time without any prepayment penalties

• Refinance up to 95% of the value of your primary residence

• Loan terms can range from 10 to 30 years

• Available for purchase, refinance, or cash-out refinance

• Adjustable-rate mortgages (ARMs) also available

FHA Mortgage

If your credit score is lower, an FHA mortgage might just be the answer. Insured by the Federal Housing Administration, these loans are available to people with lower FICO scores and down payments as low as 3.5 percent.

FHA loans are especially popular among first-time buyers. In recent years, nearly half of first-time home buyers used an FHA loan.

Benefits You’ll Love

• Generally easier to qualify for than conventional loans

• No prepayment penalties

• Variety of fixed-rate terms available along with adjustable-rate programs

• It’s possible to refinance a conventional loan into an FHA loan

• FHA to FHA streamline refinances do not require an appraisal

• Available for cash-out refinance or rate/term refinance

USDA Mortgage

The USDA’s Rural Development program helps low-to-moderate income home buyers in certain areas secure an affordable mortgage. Eligible home buyers can secure a mortgage with as little as $0 down.

While borrowers must have mortgage insurance, USDA loans feature relatively low interest rates, and the program is popular among first-time home buyers. Additionally, borrowers must meet the USDA’s regional income requirements, and personally occupy the dwelling as primary residence. USDA loans are available in areas designated and approved for rural housing by the USDA.

Benefits You’ll Love

• 0% down payment

• Up to 100% loan to value

• Borrowers with low to moderate income may qualify

• Available for purchase, rate/term refinance, or streamline refinance

VA Mortgage

Backed by the Department of Veterans Affairs, these mortgages relax the restrictions of conventional mortgages for members of the armed forces, both current and former.

Eligible applicants can secure low-interest loans, often without a down payment, and closing costs are generally lower for VA loans.

Benefits You’ll Love

• 0% down payment

• No mortgage insurance required

• Variety of fixed-rate terms available along with adjustable-rate programs

• Refinance up to 100% of the value of your primary residence

• Available for purchase or cash-out refinance

• VA streamline refinance (IRRRL) with no appraisal necessary and minimal documentation is available for current VA loan holders