Loan types, in plain English
Loan options — and what each one really means
There's no single "best" loan. The right one depends on your down payment, credit, income, and plans — whether you're buying your first home, building one, investing in rentals, or tapping the equity you already have. Here's the short version of each; call me and we'll match one to your situation.
Conventional
The most common choice for buyers with solid credit
A standard home loan not backed by the government. It's the go-to for buyers with steady income and a fair-to-strong credit history, and it works for primary homes, second homes, and investment properties.
- Down payments can start as low as 3% for qualified buyers
- Private mortgage insurance (PMI) can be removed once you reach 20% equity
- Fixed and adjustable rate options
Good fit if: you have decent credit and want PMI that eventually goes away.
FHA
A friendlier path for first-time buyers
Backed by the Federal Housing Administration, FHA loans are designed to make buying more accessible — with more flexible credit guidelines and a smaller down payment.
- Down payments as low as 3.5% for qualified buyers
- More forgiving if your credit history has a few bumps
- Gift funds from family can help with the down payment
Good fit if: you're a first-time buyer with a smaller down payment saved.
VA
A benefit earned by veterans and service members
Backed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and certain surviving spouses. It's one of the strongest loan programs available.
- No down payment required for most eligible buyers
- No monthly private mortgage insurance
- Competitive rates and limited closing costs
Good fit if: you've served — bring your Certificate of Eligibility and we'll confirm.
Jumbo
For homes above the standard loan limits
When the home you want costs more than conventional loan limits allow, a jumbo loan fills the gap. Because the loan is larger, the guidelines are a bit more detailed — and I'll walk you through each one.
- Finances higher-priced and luxury homes
- Strong credit and documented income typically expected
- Fixed and adjustable options available
Good fit if: your dream home sits above the conforming loan limit in your county.
Refinance
Replace your current loan with a better fit
Already own your home? Refinancing means swapping your existing mortgage for a new one — to lower your rate, shorten your term, drop mortgage insurance, or tap equity for renovations or debt payoff. The honest test: the savings should outweigh the costs, and I'll show you the math before you decide.
- Rate-and-term: lower your rate or change your loan length
- Cash-out: use built-up equity for major expenses
- Same simple application — start online in minutes
Good fit if: rates have dropped since you bought, your credit has improved, or your goals have changed.
Non-QM Loans
For income that's real, but doesn't fit the standard boxes
"Non-QM" means a loan that doesn't follow the standard qualified-mortgage rulebook. Instead of relying only on pay stubs and W-2s, these programs look at your income in other documented ways — a good option when you're self-employed or your earnings don't show up neatly on a tax return.
- Bank statement loans: qualify using your bank statements instead of tax returns
- 1099 loans: built for independent contractors and gig workers paid on 1099s
- Documentation is different — not missing. Expect to show a clear paper trail
Good fit if: you're self-employed, freelance, or earn commission income that traditional guidelines undercount.
Down Payment Assistance & 0% Down
Help with the hardest part: the cash up front
Down payment assistance programs help cover some or all of your down payment, so a home doesn't have to wait until you've saved a large lump sum. Some purchase programs are structured so qualified buyers need no down payment up front at all — the assistance is provided as an additional lien against the property and repaid under the program's terms.
- Assistance amounts, terms, and availability vary by program
- Programs have their own guidelines — I'll explain exactly how a specific one works before you rely on it
- Can be paired with a first mortgage for qualified buyers
Good fit if: your income supports a monthly payment, but saving the down payment is the obstacle.
The 0% Down Purchase Program
This is the flyer for the program described at left. Every detail of how it works — and whether it fits your situation — is something I'll walk through with you personally, since the fine print matters with any assistance program.
Ask John About 0% Down
One-Time Construction Loans
Build your home with one loan and one closing
A one-time construction loan (often called construction-to-permanent) finances both building your home and the finished mortgage in a single loan, with a single closing. You close once up front, the home gets built, and the loan becomes your regular mortgage when construction is complete — no second loan to apply for afterward.
- One application and one closing for the build and the mortgage
- Works for building on land you own or are buying
- Your builder and plans are part of the approval picture
Good fit if: you're building a custom home and want the financing handled in one step.
Home Equity Loans & Lines
Put the equity you've built to work — without giving up your current mortgage
Your home's equity is the difference between what your home is worth and what you owe. A home equity loan lets you borrow against it as a lump sum, while a home equity line of credit (HELOC) works more like a credit line you draw from as needed. Either way, your existing first mortgage — and its rate — stays exactly as it is.
- Home equity loan: one lump sum, repaid over time
- Home equity line: draw what you need, when you need it
- Common uses: renovations, debt consolidation, major expenses
Good fit if: you like your current mortgage rate and want to fund a project or consolidate higher-interest debt.
A better alternative to a personal loan?
Because a home equity line is secured by your home, it can be an alternative worth comparing against an unsecured personal loan. I'll lay both options side by side so you can see the real difference.
Don't refinance — just tap in
If your first mortgage already has a rate you want to keep, tapping your equity with a separate loan or line lets you leave that mortgage untouched. That's often the smarter move, and I'll show you the math either way.
Wondering what today's rates look like?
Rates change daily — sometimes more than once — based on the market, your credit, and the loan you choose. Instead of posting a number here that could be stale by lunch, I give you a real, current quote for your situation. It takes one quick call and there's no obligation.
Rates shown by phone are estimates for illustration only, are subject to change without notice, and are not a commitment to lend or an offer of credit. All loans are subject to credit review and approval, and program terms and availability may change.
