Home / Loan programs
Loan programsEvery program has a borrower it was designed for.
The right loan depends on credit, down payment, occupancy, how your income is documented, and where the property sits, not on which product is easiest to pitch. Here is how each one works and who it fits.
Reviewed by Steve Umansky, Sr. Branch Manager, NMLS #61764,
Retail & agency
Conventional (Fannie Mae / Freddie Mac) plus FHA, VA, and USDA. Most owner-occupants start here.
Conventional
The lowest total cost for buyers with solid credit. Mortgage insurance drops off once you reach 20% equity, unlike FHA.
- Minimum down
- Low down payment options on eligible purchase programs
- Credit floor
- Typically 620; overlays can be higher
- Mortgage insurance
- PMI with a smaller down payment; often cancellable
FHA
Built for buyers with limited savings or credit that is still recovering. Government-insured, so guidelines are more forgiving than conventional.
- Minimum down
- Low, with qualifying credit (typically 580+)
- Credit floor
- 580 for the lowest down payment; 500–579 needs a larger down payment
- Mortgage insurance
- FHA MIP (upfront + annual); ask for current figures
VA
For eligible veterans, active duty, and surviving spouses. Little or no money down and no monthly mortgage insurance, the strongest program in the market.
- Minimum down
- Little or none when eligible with available entitlement
- Credit floor
- VA sets no FICO minimum; lenders overlay
- Mortgage insurance
- No monthly PMI; a funding fee often applies
USDA
Little or no money down in eligible rural and suburban areas. Income limits apply by county.
- Minimum down
- Little or none in eligible areas
- Property
- Must pass the USDA eligibility map
- Income
- Household income limits — confirm with USDA
Specialty
Jumbo above the county conforming limit, renovation that wraps eligible repairs into one mortgage, and commercial/SBA conversations that are not a consumer 1003.
Jumbo
Above the conforming limit. Tighter reserves and credit standards, priced case by case.
- What “jumbo” means
- Above the FHFA conforming limit for the county
- 2026 baseline (1-unit)
- $832,750
- Backing
- Not a GSE-conforming loan
Renovation
Finance the purchase and the work in one loan, underwritten on what the house will be worth when the work is done, not what it is worth today.
- Structure
- Purchase (or refinance) plus eligible repairs in one mortgage
- Common vehicles
- FHA 203(k) and Fannie Mae HomeStyle
- Down payment / MI
- Follows the underlying FHA or conventional program
Commercial & SBA
Investment property, mixed use, multifamily, SBA 7(a) and 504, and short-term bridge financing for fix-and-flip projects.
- This is not
- A consumer TRID home-purchase in the usual sense
- 1–4 unit investment
- Often still a residential investor product
- 5+ / commercial use
- Commercial real-estate conversation
Non-QM
Non-agency products when tax returns or personal DTI are the wrong underwrite. Credit floors, LTV, reserves, DSCR tests, and property rules vary by investor. Availability depends on licensing and the overlay on your file. Not a commitment to lend.
Bank statement
Self-employed and 1099 borrowers qualified on 12 months of bank statements instead of tax returns. Non-QM; investor guidelines apply.
- Documentation
- 12 months business or personal bank statements, typically
- Best for
- Self-employed, 1099, and business owners
- Product family
- Non-QM / non-agency — investor-dependent
DSCR
Rental and investment property qualified on the property’s cash flow against the payment, not personal DTI. Non-QM; investor guidelines apply.
- DSCR
- Underwritten to property cash flow vs PITIA, typically
- Best for
- Investment / rental property — not a primary residence
- Product family
- Non-QM / non-agency — investor-dependent
Side by side
| Program | Family | Minimum down | Credit | Mortgage insurance | Best for |
|---|---|---|---|---|---|
| Conventional | Retail & agency | Low | 620 | Cancellable | The lowest total cost for buyers with solid credit. Mortgage insurance drops off once you reach 20% equity, unlike FHA. |
| FHA | Retail & agency | Low | 580 | Life of loan | Built for buyers with limited savings or credit that is still recovering. Government-insured, so guidelines are more forgiving than conventional. |
| VA | Retail & agency | Little or none | No VA minimum; lender overlays apply | None | For eligible veterans, active duty, and surviving spouses. Little or no money down and no monthly mortgage insurance, the strongest program in the market. |
| USDA | Retail & agency | Little or none | 640 | Guarantee fee | Little or no money down in eligible rural and suburban areas. Income limits apply by county. |
| Jumbo | Specialty | Higher | 700 | Usually none | Above the conforming limit. Tighter reserves and credit standards, priced case by case. |
| Renovation | Specialty | Low | 620 | Program-based | Finance the purchase and the work in one loan, underwritten on what the house will be worth when the work is done, not what it is worth today. |
| Commercial & SBA | Specialty | Varies by deal | Varies | N/A | Investment property, mixed use, multifamily, SBA 7(a) and 504, and short-term bridge financing for fix-and-flip projects. |
| Bank statement | Non-QM | Investor-set | Investor-set | None (non-QM) | Self-employed and 1099 borrowers qualified on 12 months of bank statements instead of tax returns. Non-QM; investor guidelines apply. |
| DSCR | Non-QM | Investor-set | Investor-set | None (non-QM) | Rental and investment property qualified on the property’s cash flow against the payment, not personal DTI. Non-QM; investor guidelines apply. |
Program parameters, not a commitment to lend. Loan limits, premiums, and Non-QM overlays are set by the agencies and investors and change; each program page links to the official source where one exists.
Not sure which program fits?
Three quick steps, no Social Security number. A licensed officer runs your file against every program that could apply and shows you the numbers side by side.
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Choosing a program.
Which loan program is best for a first-time buyer?
Usually conventional if your credit is in the high 600s or better, FHA if credit is still recovering or your debt ratio is high, VA if you are eligible, and USDA if the address and household income qualify. In Pennsylvania and New Jersey, PHFA and NJHMFA assistance can sit on top of several of these.
What is a Non-QM loan and when does it make sense?
Non-QM means the loan does not follow the agency "qualified mortgage" rules and is underwritten to a private investor's guidelines instead. It fits self-employed borrowers whose tax returns understate cash flow (bank statement loans) and investors who want a rental qualified on the property's income rather than personal debt ratios (DSCR). If an agency loan qualifies on the returns, it is usually the cheaper path, so we check that first.
How do I know which one I qualify for?
We run your actual file, credit, income, and assets, through the guidelines for each program that could apply and show you the payment and cash-to-close side by side. That takes one short form and a phone call, not a guess from a chart.
Do the numbers on these pages change?
Loan limits, insurance premiums, fees, and Non-QM investor overlays change, some annually and some without notice. These pages describe how each program works and link to the official source for the current figures rather than printing numbers that go stale.
Ready to see what you qualify for?