Here’s a quick, plain‑English overview of the most common mortgage options. Every situation is unique—use this as a starting point and reach out with questions.
Best for: Borrowers with solid credit and steady income who have some savings for a down payment.
Minimum down: As low as 3% for qualified buyers.
Credit: Typically 620+ for most programs.
Mortgage insurance (PMI): Required if putting less than 20% down; can usually be removed when you reach ~20% equity.
Loan limits: Up to the conforming limit set by FHFA (varies by county).
Why choose it: Flexible terms and often the lowest overall cost if you qualify.
Best for: Buyers with limited down payment or building credit history.
Minimum down: 3.5% with qualifying credit.
Credit: More lenient guidelines than many conventional loans.
Mortgage insurance: Both upfront and monthly MIP; monthly MIP may remain for the life of the loan depending on down payment and term.
Loan limits: Set by HUD and vary by area; usually below jumbo thresholds.
Why choose it: Easier approval with smaller down payment and competitive rates.
Best for: Eligible Veterans, Active‑Duty Service Members, and some surviving spouses.
Minimum down: 0% in many cases.
Credit: Flexible guidelines; overall profile still reviewed.
Mortgage insurance: No monthly PMI; a one‑time VA funding fee may apply (often financed).
Loan limits: No set maximum with full entitlement, but lender and VA guidelines apply.
Why choose it: Outstanding benefits—no down payment in many cases and no monthly PMI.
Best for: Higher‑priced homes that exceed conforming loan limits.
Minimum down: Normally 10%–20%+ depending on profile.
Credit: Stronger credit, income, and asset documentation typically required.
Mortgage insurance: Varies; some programs avoid PMI with higher down payment or structured options.
Loan limits: Above conforming limits; specific caps vary by lender and program.
Why choose it: Enables financing for luxury or high‑cost markets with tailored options.
Next step: I'll help you compare real numbers for each option based on your goals and time horizon. When you're ready, request a rate quote or reach out with questions.