Loan options, explained clearly
Every mortgage works a little differently. We break down your options in plain language so you can understand how each loan works, what to consider, and how to choose what fits your goals—without pressure or sales tactics.
30-Year Fixed-Rate Mortgage
A 30-year fixed-rate mortgage offers a consistent interest rate and stable monthly payments over the life of the loan. It’s often chosen by buyers who value predictability and long-term planning.
- Monthly payments stay the same over time
- Often suited for long-term homeowners
- Easier to budget in changing markets
- May cost more over time than shorter loans
15-Year Fixed-Rate Mortgage
A 15-year fixed-rate mortgage is fully amortized with consistent monthly payments over a shorter term. It’s often chosen by buyers who want to build equity faster and reduce long-term interest, while taking on a higher monthly payment.
- Fixed interest rate and predictable payments
- Shorter loan term builds equity faster
- Higher monthly payments than a 30-year loan
- May reduce total interest paid over time
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage starts with a fixed interest period, then adjusts over time based on market conditions. It’s often considered by buyers who plan to own the home for a shorter period or expect changes in income or housing plans.
- Lower initial rate during the fixed period
- Rate can change after the initial term ends
- Often used for short- to mid-term homeownership
- Requires comfort with future payment changes
FHA Loan
An FHA loan is a government-insured mortgage designed to make homeownership more accessible. It’s often considered by buyers who may have limited savings for a down payment or need more flexible qualification guidelines.
- Insured by the Federal Housing Administration
- Allows lower down payments than many conventional loans
- More flexible credit guidelines
- Includes mortgage insurance requirements
- Great option to add down payment assistance
VA Loan
A VA loan is a government-backed mortgage available to eligible veterans, active-duty service members, and some surviving spouses. It’s designed to support long-term homeownership with flexible terms for those who qualify.
- Backed by the U.S. Department of Veterans Affairs
- May allow low or no down payment, depending on eligibility
- No private mortgage insurance required
- Available only to qualifying service members and families
- Flexible credit guidelines
Jumbo Loan
A jumbo loan is a mortgage that exceeds standard conforming loan limits. It’s commonly used for higher-priced homes and may come with stricter qualification requirements due to the larger loan amount.
- Used for loan amounts above conforming limits
- Available with fixed or adjustable rate options
- Typically requires stronger credit and reserves
- Often used to finance higher-value properties
Home Renovation Loans
- Can be used with FHA & Conventional financing programs
- Designed for fixer-uppers
- Can accommodate minor cosmetic repairs or full home remodels
- Down payment and credit requirements are flexible
- Borrowers may qualify based on the home’s after-repair value, not its current condition.
Non-QM Mortgages
Non-QM (Non-Qualified Mortgage) loans are flexible home financing options designed for borrowers who don’t fit the traditional “one-size-fits-all” lending box. They are ideal for self-employed individuals, real estate investors, or buyers with unique income or credit profiles. These loans still follow responsible lending guidelines but allow alternative ways to document income and qualify; putting control back in the borrower’s hands.
- Bank Statement Loans: Qualify using 12–24 months of personal or business bank statements instead of tax returns
- DSCR (Investor) Loans: Approval based on property cash flow, not personal income
- Asset Depletion Loans: Use verified assets to calculate qualifying income
- Interest-Only Loans: Lower initial monthly payments for improved cash flow
- P&L-Based Loans: Approval based on a business profit & loss statement, not traditional income documentation
- Recent Credit Event Programs: Financing options available shortly after bankruptcy, foreclosure, or short sale
USDA Loan
A USDA loan is a government-backed mortgage designed to support homeownership in eligible rural and suburban areas. It’s often considered by buyers who meet income guidelines and want a low upfront cost option.
- Available for homes in eligible rural or suburban areas
- Backed by the U.S. Department of Agriculture
- May allow no down payment for qualified buyers
- Income and property eligibility requirements apply
Reverse Mortgage (HECM)
A reverse mortgage is a home loan designed for homeowners age 62 and older that allows them to convert a portion of their home equity into tax-free funds—without the requirement of a monthly mortgage payment. The homeowner retains title to the home and continues to live in it, while the loan balance is repaid when the home is sold, refinanced, or no longer used as a primary residence.
- Access a portion of home equity upfront for major expenses or debt payoff
- Receive steady monthly payments to supplement retirement income
- Flexible access to funds that grow over time if unused
- Mix of lump sum, monthly payments, and credit line
- Buy a new primary residence using a reverse mortgage, with no monthly mortgage payment
Take Control 3.0: A Clear Look at Today’s Housing Market
Join Dave Medina for a live educational bootcamp covering the current state of the mortgage industry, common misconceptions, how the new mortgage marketplace really works, and live Q&A tailored to your questions.
