An FHA loan is a type of mortgage that is backed by the Federal Housing Administration. Since these mortgage loans are insured by the federal government (and are less of a risk for lenders), they can be easier to qualify for if you're rebuilding your credit or if you need to make a smaller down payment.For instance, the minimum required down payment for an FHA loan is only 3.5% of the purchase price. The FHA mortgage calculator includes additional costs in the estimated monthly payment. Such as, a one-time, upfront mortgage insurance premium (MIP) and annual premiums paid monthly.

The FHA establishes loan limits annually based on the median home prices in metro areas and counties. The maximum loan amount is 115% of the area's median home price, subject to a national floor and ceiling. In 2024, the national floor is $498,257, and the national ceiling is $1,149,825.

Conforming loans are mortgages that meet Fannie Mae and Freddie Mac guidelines. Conforming lenders underwrite and fund the loans and then sell them to investors like Fannie Mae and Freddie Mac. Once securitized, the loans are sold to investors on the open markets.

Conforming loans do not exceed Fannie Mae's and Freddie Mac's dollar caps. The limit for 2024 is $766,550, and this figure is set every year in November by the FHFA.

A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs.VA loans are attractive because they usually don't require any down payment.While conventional mortgages require a down payment of at least 3 percent of the purchase price, VA loans allow eligible borrowers to become homeowners without putting a penny down upfront.

A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan in 2024 is $766,550 in most counties, as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan.

Jumbo loans are considered riskier for lenders because these loans can’t be guaranteed by Fannie Mae and Freddie Mac, meaning the lender is not protected from losses if a borrower defaults.

Stated income loans still exist, but they’re much different than they were. Now, applicants can no longer state their income on an application without providing some form of proof. Instead of using traditional methods, lenders verify your income using alternative methods, making it a good option for borrowers who may not qualify for traditional home loans, such as: Self-employed individuals and freelancers, Entrepreneurs, Retirees, Small business owners.

Non-QM stands for Non-Qualified Mortgage. These are loans for borrowers who may not meet the requirements of standard loan programs. Non-QM loans typically have a special income qualification. They are designed for people with unique income streams.

 Non-QM loan borrowers may be required to put a higher minimum down payment.

A foreign national loan program is a type of non-qualified mortgage designed for non-residents in the United States who are looking to purchase a house, whether it be used as an investment property or homebase while visiting.

Like all home loans, foreign national loans are granted based on the borrower’s creditworthiness, income stability, and ability to repay the loan, factoring in additional expenses, such as property taxes and homeowners insurance. However, unlike conventional loans, these loans may have more stringent requirements and require more extensive documentation.

A bank statement loan allows you to qualify for a mortgage using bank statements rather than tax returns. It's most often used by self-employed borrowers. Not all mortgage lenders offer bank statement loans.A Bank statement loan is a non-qualified mortgage loan that allows self-employed borrowers to seek a home loan without showing net income on tax returns or pay stubs. Expect to put down 20% of the home's purchase price, although some lenders may require more.

A no-income loan doesn't require proof of income, such as pay stubs, tax returns or statements from your bank. No-income-verification loans tend to require hefty down payments, likely 20% or more compared with 3% for a conventional loan and 3.5% for an FHA loan, also expect higher interest rate.

A reverse mortgage is a tool seniors can use to tap into their home's equity. This can give you a new source of income, and as long as you continue maintaining the home and paying taxes and insurance, you don't have to repay the loan (during your lifetime) unless you move or change your primary residence. You must be at least 62 years old. A reverse mortgage increases your debt and can use up your equity. While the amount is based on your equity, you're still borrowing the money and paying the lender a fee and interest.

Fix-and-flip is the strategy of purchasing a property, renovating it, then selling it at a profit. This is a short-term loan offer that gives  access to funds that can cover the cost of repairing and improving real estate investments before selling the property.  Interest rates for fix and flip loans are typically higher than conventional mortgage rates and repayment terms are often shorter.

A commercial loan is a financial instrument that businesses owners can avail of to address any short-term capital needs. The sanctioned amount can be used to increase the working capital, acquire new machinery, build new infrastructure, meet operational costs, and other such expenditures. Commercial loans have higher interest rates, higher down payments, shorter loan terms, and therefore, higher monthly payments.

A construction loan (also known as a “self-build loan") is a short-term loan used to finance the building of a home or another real estate project. Unlike traditional mortgages, which carry fixed rates, construction loans usually have variable rates that fluctuate with the prime rate. That means your monthly payment can also change, moving upward or downward based on rate changes.

Refinancing is the process of replacing an existing debt agreement with a new one that has different terms and conditions. Refinancing can be done for a variety of reasons, including: Lowering interest rates, Reducing monthly payments, Consolidating debt, Changing the loan type.

Refinancing is the process of replacing an existing debt agreement with a new one that has different terms and conditions and Cashing out equity.

Cash-out refinance allows you to receive cash from the equity in your home. This can be used for a variety of purposes, but it's important to remember that the cash is not free money and will need to be paid back to the lender.

A second mortgage is a loan that uses a home as collateral while a homeowner already has a first mortgage on the property. The term "second" refers to the order in which the loans are paid off in the event of foreclosure: the second mortgage is paid after the first mortgage.

Second mortgages can be used for a variety of purposes, including: Home improvements, Paying off debt, Avoiding mortgage insurance, Financing large purchases like a new vehicle or college, and Making a down payment on a second home. 

Common types of second mortgages include home equity loans and home equity lines of credit (HELOCs). Second mortgages often have higher interest rates than first mortgages because they are riskier for the lender.