Mortgage loans

Conventional

Conventional loans, referred to as either conforming or non-conforming, are loans that are insured by Fannie Mae or Freddie Mac. These loans are not backed by a government agency and therefore don’t offer the same features as government-insured loans. Conventional loans are ideal for individuals with moderate to strong credit ratings, regular income and those who are able to make a down payment of at least 3%.

FHA / VA

An FHA loan, allows home buyers to borrow up to 96.5% of the value of the property. FHA loans use two types of mortgage premiums — UFMIP and Annual MIP. The Upfront Mortgage Premiums are paid once the home closes and the loan is issued. FHA loans are federally backed and easier to apply for than conventional loans because borrowers can have lower credit scores and lower down payments but still qualify.

Jumbo - Non QM

A jumbo loan mortgage is any home loan that is more than the conforming limit. For 2023 726,200 is currently the maximum loan for a conventional mortgage. Jumbo loans typically have much higher down payment requirements compared to conforming loans. It's common to see lenders require 20% down on jumbo loans for single-family units, However some offer as little as 10% down. You may also need a higher down payment for second homes and multifamily units.