Mortgage loans are generally organized into categories based on their size and whether or not they are part of a government program. The type of loan you choose can affect how much you need for a down payment, the total cost of the loan and how much you can borrow. Here you can find information about the different types of loans that are available, as well as links to other important information for borrowers and our Frequently Asked Questions page.
Loan Types
- Majority of loans
- Typically cost less than FHA loans but can be harder to get
- Low down payment
- Available to those with lower credit scores
- VA: For veterans, servicemembers, or surviving spouses
- USDA: For low- to middle-income borrowers in rural areas
- Local: For low- to middle-income borrowers, first-time homebuyers, or public service employees
Generally, your lender must document and verify your income, employment, assets, debts, and credit history to determine whether you can afford to repay the loan.
What You Need to Know About Mortgage Insurance
If you can’t afford a 20 percent down payment, you will likely have to pay for mortgage insurance. You may choose to get a conventional loan with private mortgage insurance (PMI), or an FHA, VA, or USDA loan.
Depending on the loan type, you will pay monthly mortgage insurance premiums, an upfront mortgage insurance fee, or both.
Your credit score will suffer and you may face foreclosure if you don’t pay your mortgage on time.
Additional Resources
Your credit score will suffer and you may face foreclosure if you don’t pay your mortgage on time. Our Mortgage Calculator can help you understand the costs associated with repayment of a home loan. Click HERE to use the Mortgage Calculator
