All Things Loans

A conventional loan is any mortgage that is not guaranteed or insured by the US government, such as VA, FHA and USDA. When most people think of a mortgage, they’re thinking of a conventional loan. Conventional loans are the closest you can get to a ‘standard’ mortgage. There are no special eligibility requirements, pretty much all lenders offer them, and you can qualify with just 3% down and a 620 plus credit score.

A VA loan is guaranteed by the United States Department of Veterans Affairs (VA). The program is designed for American veterans including U.S. military, reservists and select surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction. The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.
The basic intention of the VA home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment.

A reverse mortgage is a specialty mortgage loan that allows homeowners sixty-two years of age and older to tap into the equity in their homes. Payments can be received as a one-time lump sum, monthly payments either for a set period of time or for as long as the borrower lives in the home, or as a line of credit that can be accessed as needed. The homeowner does not need to repay the loan in part or in full until he or she is no longer living in the home as a primary residence.

Jumbo loans are for those borrower with higher loan amounts. Generally speaking, jumbo loans are loans over $647,200 starting in 2022. That amount can vary depending upon the state in which you are borrowing but that dollar amount is the Fannie Mae and Freddie Mac conforming loan limit. Jumbo loans can be seen by servicers as a slightly more risky product so documentation requirements may be more stringent.