Eleven programs, explained plainly

A conventional loan is any mortgage not insured by a government agency, underwritten to Fannie Mae or Freddie Mac guidelines. It is the default option for buyers with reasonably steady income and a credit score around 620 or higher.

First-time buyers can go as low as 3% down. The advantage over FHA is that private mortgage insurance cancels automatically at 22% equity and can be requested at 20%, so the cost is temporary rather than permanent. The 2026 conforming limit is $832,750 in most counties.

An FHA loan is insured by the Federal Housing Administration, which lets lenders approve borrowers who would not clear conventional guidelines. Minimum down payment is 3.5% with a credit score of 580 or higher.

FHA is more forgiving on credit history, recent derogatory events, and debt-to-income ratio. The trade-off is mortgage insurance: an upfront premium plus a monthly premium that stays for the life of most FHA loans. Many buyers use FHA to get in, then refinance to conventional once credit and equity improve.

A VA loan is guaranteed by the Department of Veterans Affairs and available to eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses. It allows 100% financing with no monthly mortgage insurance.

There is no VA-set minimum credit score, though most lenders look for roughly 580 to 620. A one-time funding fee applies and can be financed into the loan; it is waived entirely for veterans receiving compensation for a service-connected disability. If you qualify, this is almost always the strongest product available to you.

A USDA loan is backed by the U.S. Department of Agriculture and offers 100% financing in designated rural and suburban areas. Income limits apply based on household size and county.

The eligibility map is broader than the name suggests. Much of the outer Atlanta metro ring qualifies, so if you are looking in Paulding, Newton, or Barrow counties it is worth checking the address before assuming you need a down payment.

A jumbo loan is any mortgage exceeding the conforming loan limit, which is $832,750 for a one-unit property in most counties in 2026. Because these loans cannot be sold to Fannie Mae or Freddie Mac, each lender sets its own guidelines.

Expect tighter requirements on credit score, cash reserves, and documentation. Down payments commonly start around 10 to 20 percent. Pricing on strong files has become genuinely competitive with conventional, which surprises borrowers who assumed jumbo meant an automatic rate penalty.

A DSCR loan qualifies the property, not the person. The lender divides the property's expected rental income by its total monthly payment — principal, interest, taxes, insurance, and any HOA — and approves based on that ratio.

Your personal tax returns, W-2s, and debt-to-income ratio generally do not enter the calculation. This is the standard tool for investors who have hit the conventional financing ceiling or whose returns show heavy depreciation. Typically 20 to 25 percent down, and short-term rental income can often be used with the right documentation.

Non-QM covers loans falling outside the Consumer Financial Protection Bureau's Qualified Mortgage definition. In practice it means alternative income documentation: bank statements, profit-and-loss statements, asset depletion, or 1099 income.

These programs exist because the tax code rewards self-employed borrowers for showing low net income, and conventional underwriting punishes them for exactly that. A modestly higher rate buys an approval conventional guidelines would not produce.

A home equity line of credit is a revolving second mortgage secured by your equity. You draw what you need, pay interest only on the balance drawn, and the line replenishes as you repay.

The main appeal in a higher-rate environment is that a HELOC leaves your first mortgage untouched, which matters if you locked a low rate and want renovation or consolidation funds without refinancing the whole balance. Rates are usually variable and tied to prime.

Bridge financing is a short-term loan that lets you purchase your next home before your current one sells, using the equity in the existing property as collateral.

It solves a specific problem: in a competitive market a contingent offer often loses to a clean one. Bridge financing makes your offer non-contingent. It is more expensive than permanent financing by design, since you only carry it for a few months.

BRRRR-strategy financing supports the buy, rehab, rent, refinance, repeat cycle: short-term acquisition and rehab capital, followed by a cash-out refinance into long-term financing once the property is stabilized.

The critical piece is sequencing — knowing before you buy what the property will appraise for after repair and what the refinance will let you pull out. Getting that math wrong is how investors end up with capital trapped in a property.

Small-balance commercial financing covers mixed-use property, multifamily buildings of five or more units, and owner-occupied business real estate, generally under $5 million.

Underwriting looks primarily at the property's net operating income and the strength of the guarantors. Terms, amortization, and prepayment structures vary far more widely than on residential loans, so comparing offers requires looking well past the headline rate.