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Loan programs
Loan programs, in plain English
A quick look at the main loan types and who each one tends to fit. The right one depends on your goals, how you earn your income and the property you're buying or refinancing.
Before you read: eligibility depends on credit, income, assets, property type, occupancy and each lender's guidelines. Guidelines change. Nothing on this page is a loan offer or a promise of approval.
Standard programs
Conventional
The most common loan type, not backed by a government agency. A good fit for borrowers with solid credit and steady, documented income. With a smaller down payment you'll pay mortgage insurance, which can be removed later as you build equity.
Eligibility depends on your credit, debt-to-income ratio, down payment and property type.
FHA
Insured by the Federal Housing Administration. Often a fit for first-time buyers, smaller down payments, or a credit history with a few bumps. Mortgage insurance is part of the loan and may last for the life of the loan unless you refinance later.
Eligibility depends on your credit and income, the FHA loan limit for your county, the home being your primary residence and the property meeting FHA standards.
VA
Guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members and some surviving spouses. It can reduce the cash you need to buy and has no monthly mortgage insurance. A VA funding fee applies unless you're exempt.
Eligibility depends on your service history and Certificate of Eligibility, plus credit, income and residual income.
USDA
Backed by the U.S. Department of Agriculture for homes in eligible rural and some suburban areas. Built for low- to moderate-income households buying a home to live in.
Eligibility depends on the property's location, household income limits, credit and income.
Jumbo
For loan amounts above the conforming loan limit in your county, usually for higher-priced homes. Expect a closer look at credit, assets and reserves.
Eligibility depends on your credit, reserves, debt-to-income ratio and the lender's jumbo guidelines.
Not sure which one fits?
That's what the first call is for. Tell me what you're buying or refinancing and how you earn your income, and I'll narrow it to the options worth comparing.
Self-employed and investor programs
These are often called non-QM loans. They document income in other ways. They usually cost more and require a larger down payment or more reserves than standard programs, so they make sense when a standard loan doesn't fit how you earn.
Bank Statement
For self-employed borrowers whose tax returns don't reflect what the business really earns after write-offs. Income is calculated from business or personal bank deposits over a set period.
Eligibility depends on your deposit history, how long you've owned the business, credit and down payment or equity.
Profit and loss (P&L) only
For self-employed borrowers who can document income with a profit-and-loss statement, usually prepared or verified by a CPA or tax preparer, instead of tax returns.
Eligibility depends on who prepares the P&L, your business history, credit and the lender's guidelines.
DSCR for investors
For real estate investors. The loan qualifies mainly on the property's rental income compared with its housing costs, not on your personal income. Investment properties only, not a home you live in.
Eligibility depends on the property's rent compared with its expenses, your credit, reserves and down payment.
Asset Utilization
For borrowers with significant savings or investments but limited or irregular income, such as retirees or people living off their investments. Qualifying assets are used to calculate income.
Eligibility depends on the amount and type of your liquid assets, how long you've held them, and credit.
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Let's find the program that fits
A short call is enough to rule options in or out.