Loan types

Find the loan that fits your situation

Eight loan types, each one page, no jargon left unexplained.

Buying a homeA conventional purchase loan is the standard mortgage: not backed by a government agency, sold to Fannie Mae or Freddie Mac, and available on 15- to 30-year terms.RefinancingA refinance replaces your current mortgage with a new one, to lower the rate, change the term, or take cash out of your equity.VA loansVA loans are guaranteed by the Department of Veterans Affairs for veterans, active service members and eligible surviving spouses. No down payment and no monthly mortgage insurance.Self-employed mortgagesIf you own a business or work for yourself, lenders read your tax returns differently. There are also loans that use bank statements or assets instead of tax returns.FHA loansFHA loans are insured by the Federal Housing Administration. They accept lower credit scores and a 3.5% down payment in exchange for mortgage insurance that lasts most of the loan.Jumbo loansA jumbo loan is any mortgage above the conforming limit that Fannie Mae and Freddie Mac will buy. Lenders keep these loans or sell them privately, so rules and pricing vary more.Home equity loans and HELOCsA home equity loan is a lump sum second mortgage at a fixed rate. A HELOC is a revolving line of credit against your equity, usually at a variable rate. Both leave your first mortgage untouched.Reverse mortgageA reverse mortgage lets homeowners 62 and older convert home equity into cash without a monthly mortgage payment. The loan is repaid when the last borrower leaves the home. This is a serious financial decision that affects your heirs.