What are the different types of mortgage loans? - Jagoe Homes

What are the different types of mortgage loans?

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How do I know what’s right for me?

The list may be long, but understanding your loan options is an important part of making the best decision for your personal situation. FBC Mortgage is a leader in the mortgage industry, and hundreds of Jagoe Homebuyers have said they would recommend FBC Mortgage in the future.

Here is a quick rundown of the different types of loans, their key benefits, and how to determine which loan may be best for your personal circumstances.

Quick rundown of mortgage loan options

Mortgage TypeKey Benefits
Worth Considering if You…
Conventional Fixed-Rate The lowest fixed interest for eligible buyersBest fixed rates No interest-rate surprisesPlan to stay in your home for a long period of time. Have an established credit history Can put at least 5% down on a home
Adjustable-Rate (ARM) The lowest rate for first 3-10 years of loan for eligible buyersLowest short-term rates Initial lower monthly payments

Initial rate period of 3-10 years, then rates can adjust up or down

Know you’ll be moving within the next few yearsHave an established credit history

Can put at least 5% down on home

Jumbo The lowest rates for higher-priced propertiesIncreased purchase limits Competitive rates

Fixed-rate ARM options

Buying a home that exceeds conforming loan limits ($417,000 in most areas)Have an established credit history

Can put at least 20% down on a home

FHA Government-backed loans with flexible guidelinesLow down payments Flexible qualification guidelines

Fixed-rate and ARM options

Limited funds for down payment No established credit history or past credit challenges
VA Government-backed loans for military membersLow or no down payment No mortgage insurance requirement

Flexible qualification guidelines

Fixed-rate ARM options

Active military or veteran Surviving spouse of service member who died as a result of military service
Construction Loans Convenient financing for new construction
loan options
Building a new home to your specifications
Buying a lot for a future home
Investment Property LoansFinancing for properties that generate incomeFinancing for residential rental property with 1-4 units Variety of loan optionsWant to become a landlord


More about FHA, VA and USDA loans

Loans granted by the FHA (Federal Housing Authority), VA (Veterans Administration) and USDA (United States Department of Agriculture) are designed to meet special circumstances or provide specific benefits. Click below to learn more.


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