Not all home loans are the same. The loan type you choose will affect how much you will need for a down payment, the total cost of your loan, and the house price range you can consider. Each loan is designed for different situations. Sometimes, only one loan type will fit your situation. If multiple options fit your situation, let’s talk through different scenarios so you can see which type is the best offer for you.

Conventional Loan an option for buyers with good credit

A majority of mortgages are conventional loans. Conventional means that the loan is not part of a specific government program. Conventional loans can cost less than FHA loans but can be more difficult to get.

• Lower closing costs
• No private MI for 20% or more down payment
• 5% down payment option (can be gifted funds if credit score is 660 or higher)
• 6% seller contribution maximum allowed with 90% loan-to-value (LTV) maximum
• 3% seller contribution allowed with LTV of 90% or higher

FHA Loan an option for buyers with limited funds

An FHA Loan is a mortgage that's insured by the Federal Housing Administration. For borrowers with lower credit scores or a smaller down payment, FHA loans can be a practical option. With down payment requirements as low as 3.5%, FHA loans are especially popular with first-time home buyers.

• Only a 3.5% down payment is required
• Non-occupying co-borrowers allowed
• Down payment can be a gift or loan to the borrower from an eligible source, such as a family member or a state housing agency program.

HomeReady^® by Fannie Mae an option for modern buyers.

With HomeReady, cash for down-payment and closing costs can come from multiple sources, including gifts and grants—with no minimum personal funds required.

• Non-traditional credit allowed¹
• Down payment options as low as 3%²
• Reduced mortgage insurance with the opportunity to cancel³
• Various forms of income accepted for down payments and closing costs—including gifts and grants⁴

VA Loan an option for active and retired military and their spouses.

To be eligible for a VA loan, you must have sufficient entitlement available and be a(n): veteran (single or married), active duty service member, National Guard member, reserve member, or surviving spouse of an eligible veteran (certain restrictions apply).

• 100% financing
• Seller of a home can pay closing costs: up to 2 discount points, the prepaids, and an additional 4% (toward the buyers discretion)
• No monthly mortgage insurance required
• Buyers can add up to $6,000 to their VA loan to have energy-efficient improvements installed

All loan programs, rates, terms, and conditions are subject to change at any time without notice. Restrictions apply. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend.

¹ A minimum of three sources of nontraditional credit are required for HomeReady loans. If a borrower does not have a housing-related source of credit, a minimum 12 months’ of reserves may be required. Restrictions apply. ²  Financing up to 97% loan-to-value (LTV) can use any fixed-rate term (10-, 15-, 20-, 30-year). Other loan program restrictions may apply. ³ A minimum of 20% established home equity required before borrower is eligible to terminate MI. Other restrictions apply. Standard MI coverage is required on HomeReady^® loans with LTV ratios at or below 90 percent, and 25 percent coverage is required for LTV ratios exceeding 90 percent. ⁴ Restrictions apply. HomeReady^® loans are serviced under the requirements for all other Fannie Mae non-government conventional mortgage loans. All eligibility criteria and requirements are subject to the formal terms and conditions of the Fannie Mae Selling Guide, located at https://www.fanniemae.com.

The more you know about the home buying and mortgage process, the more confident you'll feel about making these important decisions that will shape your future. 

First Time Home Buyer Buying your first home is a big step, but it doesn't have to be a scary one. The first-time homebuyer guide will give you an overview of the home buying process as well as access to various prequalification and payment calculators.

Buying Already own a home but looking for a bigger space? Take the time to choose wisely. Here are some ideas to think about as you begin your search.

Refinancing Wondering if refinancing is right for you?  Here you'll find the information and tools you need to make the choice that's right for you. 

Loan Programs Overwhelmed by your options? You don't have to be. This will give you an overview of fixed-rate vs. adjustable rate and the different types of mortgages available within each category (15 yr., 30 yr., 5/1 ARM, 7/1 ARM, etc.).

Interest Rate Income Qualifier View your potential mortgage interest rate based on your yearly income.

Mortgage Glossary View a listing of commonly used mortgage terms.

Credit Union Mortgage Association Mortgage Calculators 

• Mortgage Calculator
• Refinance Calculator
• Extra Payment Calculator
• Principal Calculator