Mortgage Loan Types

Conventional
A conventional mortgage is a home loan not insured or guaranteed by a government agency. It typically requires a higher credit score and larger down payment but offers more flexibility with property types and loan options. These mortgages typically require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20% of the purchase price. This serves as protection for the lender in case the borrower defaults on the loan.

Federal Housing Administration (FHA)
An FHA mortgage is a home loan secured by the Federal Housing Administration. It is designed to help borrowers with lower credit scores and smaller down payments qualify for a mortgage. FHA loans often have more lenient qualification criteria but require mortgage insurance premium (MIP) as protection for the lender in case the borrower defaults on the loan.

Veterans Affairs (VA)
A VA mortgage is a home loan guaranteed by the U.S. Department of Veterans Affairs. It is available to eligible Service members, veterans, and surviving spouses. VA loans offer benefits such as no down payment requirement, competitive interest rates, and flexible qualification guidelines. VA loans provide another significant benefit by exempting borrowers from private mortgage insurance (PMI) or mortgage insurance premium (MIP), a requirement on many other mortgage types when the down payment is less than 20%.

United States Department of Agriculture (USDA)
A USDA mortgage is a home loan created through the United States Department of Agriculture designed to support homebuyers in rural areas. They offer low to no down payment options with flexible qualification guidelines, making homeownership more accessible in eligible rural communities. Certain types of USDA loans incur additional fees that are similar to Private Mortgage Insurance (PMI).