Fannie Mae & Freddie Mac

A Conventional loan is a type of mortgage that is not insured or guaranteed by a government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, it is backed by private lenders, like banks, credit unions, or mortgage companies, and typically conforms to guidelines set by Fannie Mae or Freddie Mac, two government-sponsored enterprises that buy and sell these loans in the secondary mortgage market.

Conventional loans are popular among homebuyers due to their flexibility and availability. They generally come in two forms: conforming and non-conforming. Conforming Conventional loans adhere to the loan limits established by the Federal Housing Finance Agency (FHFA), which for 2025 is set at $806,500 for most areas of the U.S., though it can be higher in high-cost regions. Non-conforming loans, such as jumbo loans, exceed these limits and often have stricter qualification requirements.

Key features of a Conventional loan include:
Down Payment: Typically ranges from 3% to 20% of the home’s purchase price, depending on the lender and borrower’s credit profile. A down payment of less than 20% usually requires private mortgage insurance (PMI).
Credit Requirements: Borrowers generally need a good credit score, often 620 or higher, though better rates are available for scores above 740.

Government Insured Loans

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). Designed to make homeownership more accessible, especially for first-time buyers and those with moderate incomes, FHA loans offer flexible qualification requirements and lower down payment options compared to conventional mortgages.

Key features of an FHA loan include:

Low Down Payment: Borrowers can put down as little as 3.5% of the purchase price, provided they have a credit score of 580 or higher. For those with credit scores between 500 and 579, a 10% down payment is typically required.

Flexible Credit Requirements: FHA loans are more lenient with credit scores and past financial difficulties, such as bankruptcies or foreclosures, making them an option for borrowers who might not qualify for conventional loans.
Mortgage Insurance: Borrowers are required to pay an upfront mortgage insurance premium (UFMIP), typically 1.75% of the loan amount, as well as an annual mortgage insurance premium (MIP) that varies based on the loan term, amount, and down payment. This insurance protects lenders in case of default.

Loan Limits: The FHA sets maximum loan amounts based on the cost of living in different areas, updated annually. For 2025, these limits vary by county and property type (e.g., single-family homes, duplexes).

Veterans Administration

A VA loan is a mortgage option specifically designed for eligible U.S. military veterans, active-duty service members, and certain surviving spouses. Backed by the Department of Veterans Affairs (VA), this loan program aims to help those who have served the country achieve homeownership with favorable terms that are often more accessible than conventional loans.

One of the standout features of a VA loan is that it typically requires no down payment, making it easier for qualified borrowers to purchase a home without needing to save up a large lump sum. Additionally, VA loans don’t require private mortgage insurance (PMI), which is usually mandatory for conventional loans with less than 20% down—saving borrowers on monthly costs. Interest rates on VA loans are often competitive, and the program offers flexible credit requirements, which can benefit those who might not qualify for other mortgage types.

To be eligible, borrowers need a Certificate of Eligibility (COE) from the VA, which verifies their service history meets specific guidelines (e.g., a minimum period of active duty, typically 90 days during wartime or 181 days during peacetime). The property must also meet VA standards, meaning it’s primarily for owner-occupied residences, not investment properties.

U.S. Department of Agriculture

A USDA loan is a mortgage option offered through the United States Department of Agriculture (USDA) designed to help low- to moderate-income homebuyers purchase properties in eligible rural and suburban areas. Officially known as the USDA Rural Development Guaranteed Housing Loan, this program aims to promote homeownership and support economic development in less densely populated regions.

Key features of a USDA loan include:

No Down Payment: One of the standout benefits is that USDA loans require no down payment, making homeownership more accessible for those who may struggle to save for a traditional mortgage.

Low Interest Rates: These loans often come with competitive interest rates, which can be fixed for the term of the loan, typically 30 years.

Loan Amounts above the FHFA Limit

A Jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are designed to finance higher-priced properties that fall outside the scope of conventional mortgages backed by Fannie Mae or Freddie Mac. In 2025, the conforming loan limit for most areas in the U.S. is typically around $766,550 for a single-family home, though this amount can adjust annually based on housing market trends and may be higher in certain high-cost regions.

Jumbo loans are ideal for homebuyers seeking luxury homes, properties in competitive real estate markets, or larger residences that require financing beyond standard limits. Because they aren’t eligible for purchase by government-sponsored enterprises, Jumbo loans are considered non-conforming and often come with stricter requirements. Lenders typically require a higher credit score (often 700 or above), a lower debt-to-income ratio (usually 43% or less), and a larger down payment (commonly 20% or more). Additionally, borrowers may need to provide extensive documentation of income, assets, and reserves to demonstrate their ability to repay the loan.

Interest rates on Jumbo loans can vary—sometimes higher than conforming loans due to increased risk for lenders, though competitive rates may be available depending on the borrower’s financial profile and market conditions. These loans offer flexibility in terms of fixed-rate or adjustable-rate options, with terms typically ranging from 15 to 30 years.

Income Based on Deposits

A Bank Statement loan is a type of mortgage designed for borrowers who may not qualify for traditional loans due to unconventional income sources or difficulty verifying income through standard documentation like W-2s or tax returns. This loan option is particularly popular among self-employed individuals, freelancers, business owners, or those with significant non-traditional income, such as tips, commissions, or investments.

What is a Bank Statement Loan?

A Bank Statement loan allows you to qualify for a mortgage using your bank statements instead of traditional income verification methods. Rather than submitting tax returns or pay stubs, lenders review 12 to 24 months of your personal or business bank statements to assess your income based on deposits. This flexible approach makes it an ideal solution for self-employed borrowers or those with irregular income streams who can demonstrate their ability to repay the loan.

Key Features:

Income Verification: Lenders calculate your qualifying income by averaging monthly deposits over a specified period (typically 12 or 24 months).

Loans for middle to low income

A HomeReady loan is a conventional mortgage option offered by Fannie Mae, designed to make homeownership more accessible for creditworthy borrowers with low to moderate incomes. It’s an ideal choice for first-time or repeat homebuyers who may face financial challenges, such as limited savings for a down payment or nontraditional income sources. With a HomeReady loan, borrowers can purchase or refinance a primary residence with as little as a 3% down payment, significantly lower than the standard 20% required for many conventional loans.

This program stands out for its flexibility. Borrowers can fund the down payment and closing costs using a variety of sources, including gifts, grants, or Fannie Mae’s Community Seconds program, with no minimum personal contribution required. It also allows income from non-occupant co-borrowers, such as parents, or even rental income from a boarder or accessory dwelling unit to help qualify, making it easier for households with unique financial situations to secure a mortgage.

Additional benefits include reduced private mortgage insurance (PMI) premiums compared to standard conventional loans, with the option to cancel PMI once the borrower achieves 20% equity in the home.

Middle to Low income Familes

A Home Possible loan is an affordable mortgage option offered by Freddie Mac, designed to make homeownership more accessible for low- to moderate-income borrowers. This conventional loan program allows qualified buyers to purchase a home with as little as 3% down, significantly reducing the upfront cost compared to traditional mortgages. It’s an excellent choice for first-time homebuyers, move-up buyers, or even retirees who may have limited savings but can manage a monthly mortgage payment.

One of the standout features of the Home Possible loan is its flexibility in funding the down payment. Borrowers can use a variety of sources, such as gifts from family, grants, employer assistance programs, or even sweat equity—where the borrower contributes labor to improve the property. There’s no minimum contribution required from the borrower’s own funds, making it easier for those with limited cash reserves to qualify.

The program also offers reduced mortgage insurance costs compared to standard conventional loans, and borrowers can cancel the mortgage insurance once the loan balance drops below 80% of the home’s appraised value, potentially lowering monthly payments over time. Eligibility typically requires a credit score of at least 660, though options exist for those without a traditional credit score, provided they meet additional criteria like a 5% down payment. Income limits apply, generally capping household income at 80% of the area median income (AMI), though this can vary by location—especially in low-income or underserved areas where limits may be more flexible.

FHA Title I Loan

Looking to upgrade your home or purchase a manufactured home? An FHA Title I Loan can make it happen! Backed by the Federal Housing Administration (FHA), this flexible loan program helps homeowners and buyers like you fund essential home improvements, repairs, or the purchase of a manufactured home—all with affordable terms and no need for significant home equity.

Home Improvements

Repair or renovate your home with up to $25,000 for single-family homes.

Fix critical systems (e.g., roofing, plumbing, HVAC) or enhance accessibility (e.g., ramps, bathroom modifications).

Boost energy efficiency with new windows, insulation, or solar panels.

Add functional spaces like kitchens or bathrooms to improve your home’s livability.

No equity required—perfect for new homeowners or those with limited home value.

Why Choose an FHA Title I Loan?

No Equity Needed: Unlike traditional home equity loans, you can qualify even if you owe more on your mortgage than your home is worth.

Flexible Terms: Enjoy fixed-rate loans with repayment terms up to 20 years, keeping payments manageable.