Buying a home is exciting, but the number of loan options can make your head spin. The truth is, there is no one “best” mortgage: the right choice depends on your goals, budget, and even the type of property you are buying.

Let’s break down some of the most popular loan programs so you can get a clearer picture of what might work for you.

Conventional Loans: The Most Common, Versatile Choice

Conventional loans are the go-to for many buyers, especially those with good credit and a stable income. They can require as little as 3% down, and once you build enough equity you can drop your private mortgage insurance (PMI). If you are looking for flexibility and potentially lower long-term costs, this is a strong place to start.

FHA Loans: A Boost for Buyers Who Need Flexibility

FHA loans are backed by the Federal Housing Administration and can be a popular choice for first-time buyers or those with less-than-perfect credit. With down payments as low as 3.5% and more flexible qualifying guidelines, they can be a great entry point into homeownership.

USDA Loans: Zero Down for Rural and Some Suburban Areas

If you are buying in an eligible area and meet certain income limits, a USDA loan could mean no down payment at all. These loans are backed by the U.S. Department of Agriculture and can be a strong option for buyers looking outside of densely populated cities.

VA Loans: Earned Benefits for Military Families

For eligible service members, veterans, and some surviving spouses, VA loans offer unmatched benefits. These include no down payment, no monthly mortgage insurance, and competitive rates. It can be one of the most powerful tools available to those who have served.

Condo Loans: Financing for a Different Kind of Lifestyle

If your dream home is a condo, there are extra rules and approvals to consider. That does not mean financing has to be a headache. Condo loans can work with conventional, FHA, VA, or USDA financing depending on your eligibility. The most important step is making sure the property meets certain guidelines, which your lender can help you navigate.

Jumbo Loans: For Homes Above the Usual Price Limits

Looking at a home with a price tag higher than the standard conforming loan limit? Jumbo loans are designed for larger loan amounts and often require stronger credit and a larger down payment.

Renovation Loans: Could Help You Turn a “Maybe” Into Your Dream Home

Sometimes the perfect home just needs a little work, or maybe a lot. Renovation loans allow you to roll the cost of repairs or upgrades into your mortgage so you do not have to pay for improvements out of pocket after closing.

New Construction Loans: Building from the Ground Up

If you are having a home built, a construction-to-permanent loan can simplify the process by combining your construction financing and permanent mortgage into one closing. This could means fewer fees and less paperwork compared to getting two separate loans.

DSCR Loans: Designed for Investors

For real estate investors, a DSCR (Debt Service Coverage Ratio) loan focuses on the income the property can generate rather than your personal income. It is a way to qualify for financing based on the property’s cash flow, which can be especially useful for rental purchases.

Temporary Buydowns: Lower Payments in Your First Years

A temporary buydown lets you start with a lower interest rate for the first year or two, then gradually increase to your full rate. This can give you some breathing room in your budget while you settle into your new home or while you wait for your income to grow.

Which Loan Is Right for You?

The best way to find the right mortgage is to look at your income, credit, savings, and long-term goals. If your ideal loan is not listed here, we can explore other options to help you reach your homeownership or personal goals. Fill out the form below, and we can help match you with the program that fits your situation.

NOTE: The mentioned benefits to these program offerings require borrower qualification. Reach out to a loan officer to find out about more eligibility requirements. Additional restrictions may apply. Movement Mortgage is not affiliated, endorsed, or sponsored by the Department of Veterans Affairs or Federal Housing Administration, United States Department of Agriculture or any government agency.