Here are the basics. Watch the video for a full explanation!
Conventional Loans
These are standard loans that are not insured or guaranteed by the federal government. They often require a higher credit score and a larger down payment compared to government-backed loans. They typically have more flexible terms and can be conforming (meeting the limits set by Fannie Mae and Freddie Mac) or non-conforming.
Jumbo Loans
Jumbo loans are designed for financing properties that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. Because of their larger size, they often come with stricter credit requirements, higher down payments, and higher interest rates. They are used for luxury homes or properties in high-cost areas.
FHA Loans
Federal Housing Administration (FHA) loans are insured by the FHA and are aimed at helping first-time homebuyers or those with less-than-perfect credit. They offer lower down payments (as low as 3.5%), lower credit score requirements, and more flexible income and debt guidelines.
VA Loans
These loans are guaranteed by the U.S. Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. VA loans offer competitive interest rates, no down payment (in most cases), and no private mortgage insurance (PMI) requirements.