Loan Options

Conventional Mortgages
A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.
Conventional loans are much more common than government-backed financing. In the first quarter of 2018, conventional loans were used for 74% of all new home sales, making them the most popular home financing option by a long shot.

Federal Housing Administration (FHA) loans
FHA loans are backed by the Federal Housing Administration, and VA loans are guaranteed by the Veterans Administration.
With an FHA loan, you’re required to put at least 3.5% down and pay MIP (mortgage insurance premium) as part of your monthly mortgage payment. The FHA uses money made from MIP to pay lenders if you default on your loan.

VA Loan
A VA loan is a mortgage loan that’s issued by private lenders and backed by the U.S. Department of Veterans Affairs. It helps U.S. veterans, active duty service members, and widowed military spouses buy a home.
VA loans were introduced as part of the GI Bill in 1944, but they’ve become increasingly popular in recent years. In the first quarter of 2019, 8% of home purchases were made with a VA loan. This type of loan is an attractive option because it’s pretty easy to qualify for and doesn’t require a down payment.

Jumbo Mortgage Loan
The term “jumbo mortgage” means any loan that is greater than the conforming loan limits as established by the Federal National Mortgage Association or FNMA (Fannie Mae), currently over $484,350 in most states for 2019.
Jumbo mortgage loan programs are varied to meet every need for different property types, product types and loan sizes. Jumbo guidelines can vary from conforming loan guidelines with increased down payment requirements and specialized zoning requirements for different zip codes. And, the maximum loan amounts may also vary with the location of the property.