The main types of home loans, and how they work
Use these guides to understand your options. Programs and guidelines change often, so reach out to see which options are available for your scenario today.
Conventional
Fannie Mae and Freddie Mac loans, ARMs and jumbo.
- Conventional LoansFannie Mae and Freddie Mac loans for homes, second homes and rentals.
- Adjustable-Rate MortgagesA fixed rate for an initial period, then periodic adjustments.
- Jumbo LoansFor loan amounts above the conforming limit.
- High-Balance Conforming LoansConventional loans in high-cost counties, above the baseline limit.
- HomeReady and Home PossibleAgency programs for moderate incomes, with lower mortgage insurance costs.
Government
FHA, VA and USDA loans and streamline refinances.
- FHA LoansGovernment-insured, with flexible credit guidelines.
- VA LoansFor eligible veterans and service members. No monthly mortgage insurance.
- USDA LoansRural Development loans for eligible areas and incomes.
- FHA Streamline RefinanceRefinance an existing FHA loan with simpler documentation.
- VA Streamline Refinance (IRRRL)Refinance an existing VA loan with simpler documentation.
- FHA 203(h) Disaster Victim LoansFHA financing to buy or rebuild after a declared major disaster.
Renovation
Buy or refinance and fund improvements in one loan.
Refinance & equity
Refinance, cash-out, HELOCs and second mortgages.
- RefinancingChange your rate or term, or take cash out.
- Cash-Out RefinanceTurn home equity into cash with a new, larger first mortgage.
- Home Equity Lines of Credit (HELOC)Borrow against equity as needed, without replacing your first mortgage.
- Closed-End Second MortgagesA lump-sum home equity loan that keeps your first mortgage.
First-time buyers
Options and down payment assistance for first homes.
- First-Time Homebuyer OptionsOptions and assistance programs for your first home.
- Freddie Mac HomeOneLow down payment conventional loan for first-time buyers, with no income limit.
- Down Payment Assistance ProgramsGrants and second loans that help with funds to close.
- Florida Housing Homebuyer ProgramsFlorida Housing first mortgages with down payment help.
Self-employed
Bank statement, P&L, 1099, WVOE, asset-based and expanded prime loans.
- Bank Statement LoansSelf-employed? Many lenders use bank deposits to figure income.
- Profit and Loss Statement LoansSelf-employed? Many lenders accept a profit and loss statement for income.
- 1099 Income LoansContractors and gig workers can document income with 1099s at many lenders.
- Written Verification of Employment LoansWage earners can document income with an employer-completed form at many lenders.
- Asset-Based LoansUses savings and investments to figure qualifying income. Rules vary by lender.
- Expanded Prime LoansFull-documentation loans just outside agency guidelines.
Credit & residency
Recent credit events, non-permanent residents, ITIN and foreign national loans.
- Recent Credit Event LoansAfter a bankruptcy or foreclosure, without the full agency wait.
- Loans for Non-Permanent ResidentsOptions for visa holders and other lawful non-permanent residents.
- ITIN LoansFinancing for borrowers with an ITIN instead of an SSN.
- Foreign National LoansBuy in the U.S. without U.S. credit history.
Investor
DSCR, short-term rental, condo, interest-only and fix-and-flip financing.
- Conventional Investment Property LoansAgency loans for rental properties, using your income and the rent.
- DSCR Loans for InvestorsLooks mainly at the property's rent. Documents vary by lender.
- Short-Term Rental LoansFinance vacation rentals using short-term rental income.
- Condotel and Non-Warrantable Condo LoansFor condos and condo-hotels outside Fannie Mae and Freddie Mac project rules.
- Interest-Only LoansInterest-only payments for an initial period.
- Fix-and-Flip and Investor Bridge LoansShort-term financing to buy, renovate and resell.
Specialty
Physician, multi-unit, manufactured home, bridge, construction, buydown and reverse mortgage options.
- Temporary Rate BuydownsFunds set aside at closing that cover part of each payment in the first years.
- Construction-to-Permanent LoansFinance building a home with one closing.
- Reverse Mortgages (HECM)Homeowners 62+ can turn equity into cash.
- Physician and Medical Professional LoansBuilt for doctors and medical professionals early in their careers.
- Manufactured Home LoansFHA, VA, USDA and conventional options for manufactured homes.
- Two- to Four-Unit Home LoansLive in one unit and rent the others.
- Second Home LoansFinance a vacation home you will use part of the year.
- Mixed-Use Property LoansFinance a home with business space, to live in or to rent out.
- Bridge Loans (Buy Before You Sell)Use your current home's equity to buy before you sell.
The information here is educational only. It is not an offer, approval or commitment to lend. Eligibility is subject to underwriting review of your application and the property. Not every program is offered by every lender or in every state. Each program has property and occupancy requirements, and terms and guidelines can change. This site does not quote rates or fees. Down payment, rate, points and loan amount limits depend on the program, the lender and your situation. Ask your loan officer for details.