Complete Guide to Mortgage Loan Options 2025
Compare all mortgage loan types and find the perfect solution for your home buying needs. From conventional to specialty loans, we've got you covered.
Complete Mortgage Loan Options Guide
Navigate through our comprehensive guide to all mortgage loan types
Table of Contents
Tools & Calculators
Quick Navigation Tip
Click any section above to jump directly to that part of the guide. Use the loan comparison tool to find the best option for your situation.
Mortgage Loan Options FAQ - Everything You Need to Know
Get answers to the most common questions about different mortgage loan types
What's the difference between conventional and government-backed loans?
Conventional loans are not insured by the government and typically require higher credit scores and down payments, but offer more flexibility. Government-backed loans (FHA, VA, USDA) are insured by federal agencies, allowing for lower credit scores and down payments, but have specific eligibility requirements.
Which loan type is best for first-time homebuyers?
FHA loans are often ideal for first-time buyers due to their low 3.5% down payment requirement and flexible credit guidelines. Conventional loans with 3% down are also popular for buyers with good credit. VA and USDA loans offer 0% down for eligible borrowers.
How do I choose between a fixed-rate and adjustable-rate mortgage?
Fixed-rate mortgages offer stable payments but higher initial rates. Choose fixed if you plan to stay long-term or want payment stability. ARMs offer lower initial rates but payments can change. Consider ARMs if you plan to move within 5-7 years or expect income to increase significantly.
What credit score do I need for different loan types?
Credit score requirements vary: FHA loans accept 580+ (3.5% down) or 500+ (10% down), conventional loans typically require 620+, VA loans generally need 620+, and jumbo loans often require 700+. Higher scores generally mean better rates and terms.
Can I combine different loan types or use multiple programs?
Some loan types can be combined with down payment assistance programs or grants. For example, you can use an FHA loan with state or local down payment assistance. However, you cannot combine FHA with VA or USDA loans for the same property.
What are the current loan limits for 2025?
FHA loan limits range from $498,257 to $1,149,825 depending on location. Conventional conforming loans are limited to $766,550 in most areas, while VA loans have no specific limit but follow conforming guidelines. Jumbo loans exceed these limits and have stricter requirements.
Interactive Loan Comparison Tool
Select up to 3 loan types to compare side-by-side and find the best option for your situation
Select Loans to Compare (up to 3):
Conventional Loans
Traditional mortgage loans with competitive rates and flexible terms.
Key Features:
- Competitive interest rates
- Flexible down payment options
- PMI removal at 20% equity
- Multiple term lengths
Best For:
- Strong credit borrowers
- Primary residences
- Investment properties
- Second homes
FHA Loans
Government-backed loans with lower credit requirements.
Key Features:
- Low down payment requirement
- Flexible credit guidelines
- Competitive rates
- Multiple term options
Best For:
- First-time homebuyers
- Lower credit scores
- Limited savings
- Primary residences
VA Loans
Special financing options for veterans and active military.
Key Features:
- No down payment required
- No monthly PMI
- Competitive rates
- Flexible requirements
Best For:
- Veterans
- Active duty military
- Eligible spouses
- Primary residences
USDA Loans
Great for Rural Living. Click Here for our USDA Mortgage Guide.
Key Features:
- No down payment required
- Lower mortgage insurance
- Competitive rates
- Fixed-rate terms
Best For:
- Rural homebuyers
- Low to moderate income
- Primary residences
- First-time buyers
DSCR Loans
Qualify based on property cash flow, not personal income. Perfect for investors.
Key Features:
- No personal income required
- Qualify based on property cash flow
- Multiple properties allowed
- Interest-only options
Best For:
- Real estate investors
- Rental properties
- Portfolio expansion
- Self-employed borrowers
Non-QM Loans
Alternative financing solutions for self-employed and unique situations
Key Features:
- Bank statement programs
- Asset qualification
- Interest-only options
- Alternative income docs
Best For:
- Self-employed
- Real estate investors
- Foreign nationals
- Unique income situations
Reverse Mortgages
Convert your home equity into cash while maintaining ownership. Available for homeowners 62 and older.
Key Features:
- No monthly payments required
- Keep home ownership
- Tax-free cash access
- FHA insurance protection
Best For:
- Seniors 62+
- Significant home equity
- Primary residences
- Retirement planning
Construction Loans
Finance your new dream home project with our flexible construction loans.
Key Features:
- Single closing process
- Interest-only during construction
- Flexible draw schedule
- Builder approval process
Best For:
- New construction
- Major renovations
- Custom homes
- Builder partnerships
Jumbo Loans
Click here to learn more about Jumbo Home loans.
Key Features:
- Higher loan limits
- Competitive rates
- Various term options
- Multiple property types
Best For:
- Luxury homes
- High-cost areas
- Strong credit profiles
- Higher income buyers
Adjustable Rate Mortgage
Is the Adjustable Rate Mortgage right for you? Click here to learn more.
Key Features:
- Lower initial rates
- Rate adjustment periods
- Rate caps protection
- Conversion options
Best For:
- Short-term homeowners
- Rising income expected
- Rate drop potential
- Lower initial payments
Temporary Buydown
Lower your initial mortgage payments with a temporary rate buydown.
Key Features:
- 2-1 and 3-2-1 buydown options
- Lower initial payments
- Seller contributions allowed
- Fixed-rate protection
Best For:
- First-time homebuyers
- Rising income expected
- Seller assistance available
- Payment flexibility needed
Manufactured Home Loans
Specialized financing for modern manufactured and modular homes. Get competitive rates and flexible terms for your factory-built home.
Key Features:
- Multiple loan programs available
- Land and home financing
- Competitive interest rates
- Foundation requirements flexibility
Best For:
- Manufactured homebuyers
- Modular home purchases
- Rural properties
- Cost-conscious buyers
Expert Tips for Choosing the Right Loan
Professional advice to help you select the perfect mortgage for your situation
Loan Selection Strategy
Assess Your Financial Situation
Review your credit score, income, debt-to-income ratio, and available down payment to understand your options.
Consider Your Timeline
How long do you plan to stay in the home? This affects whether you should choose a fixed or adjustable rate.
Compare Total Costs
Look beyond just the interest rate - consider closing costs, PMI, and other fees that affect the total cost.
Common Mistakes to Avoid
Only Comparing Interest Rates
The lowest rate isn't always the best deal. Consider all costs and loan terms.
Not Getting Pre-Qualified
Pre-qualification helps you understand your budget and makes you a stronger buyer.
Ignoring Down Payment Assistance
Many programs exist to help with down payments - research what's available in your area.
Ready to Get Started? Here's Your Action Plan
Follow these steps to find and secure the perfect mortgage for your home purchase
Check Your Credit
Review your credit report and score. Dispute any errors and work on improving your score if needed.
Calculate Affordability
Use our calculators to determine how much house you can afford based on your income and expenses.
Compare Loan Options
Use our loan comparison tool to evaluate different mortgage types and find the best fit.
Get Pre-Qualified
Contact our loan officers to get pre-qualified and start your home buying journey with confidence.
Ready to Find Your Perfect Mortgage?
Our experienced loan officers are here to help you navigate all your mortgage options and find the best solution for your needs.
Important Compliance Notice
Pre-qualification is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Rates and terms may vary based on creditworthiness and market conditions. Licensed Mortgage Broker/Lender. Equal Housing Opportunity.