Comprehensive Guide

The Complete Guide to Mortgage Loan Types

Compare conventional, government-backed, non-QM, and investment loans side by side. Find the right mortgage for your situation with our detailed comparison.

15 min readUpdated June 2026Last reviewed: June 2026Reviewed by Moe Hernandez

Understanding Your Mortgage Options

Choosing the right mortgage is one of the most important financial decisions you'll make. With dozens of loan programs available, finding the best fit starts with understanding your options.

This guide breaks down every major loan type into 6 categories: Conventional (traditional bank loans), Government-backed (VA, FHA, USDA), Non-QM (alternative documentation), Specialty (construction, renovation), Investment (rental properties), and Refinance options.

Whether you're a first-time buyer, self-employed entrepreneur, military veteran, or real estate investor, there's a loan program built for your situation. Let's explore each category.

25+

Loan Programs

Min Down Payment

580

Min Credit Score

$10M+

Max Loan Amount

Conventional Loans

Traditional financing backed by private lenders, not the government. Conventional loans are the most common mortgage type in America, with competitive rates and flexible terms for borrowers with good credit.

Min Down: 3%Min Credit: 620Max Loan: $766K conforming

Best For

W-2 employees with stable income
Credit scores 620+
Down payments of 3–20%
Primary residences and investment properties

Key Benefits

PMI can be removed at 20% equity
No upfront funding fees
Flexible property types (1–4 units)
Terms from 10–40 years

Available Products

Fixed-Rate Mortgage

Lock in your rate for 15, 20, or 30 years. Predictable payments that never change.

Adjustable-Rate Mortgage (ARM)

Lower initial rates with 5/1, 7/1, or 10/1 fixed periods before annual adjustments.

Jumbo Loans

For loan amounts above $766,550. Built for higher-value homes.

Piggyback (80/10/10)

Avoid PMI with 10% down using a first and second mortgage combo.

Doctor's Loan

Special terms for physicians with student debt and high future earning potential.

Government-Backed Loans

Loans insured or guaranteed by federal agencies (VA, FHA, USDA). These programs offer strong benefits like zero down payments, flexible credit requirements, and competitive rates for eligible borrowers.

Min Down: 0%Min Credit: 580Max Loan: No limit (VA)

Best For

Veterans and active military (VA)
First-time homebuyers (FHA)
Rural property buyers (USDA)
Borrowers with lower credit scores

Key Benefits

Zero down payment options (VA, USDA)
Credit scores as low as 580 (FHA)
Below-market rates
Government guarantee reduces lender risk

Available Products

VA Home Loans

The top mortgage option for veterans. $0 down, no PMI, no loan limits.

FHA Loans

3.5% down with credit scores from 580. A strong option for first-time buyers.

USDA Loans

100% financing in eligible rural and suburban areas with income limits.

FHA 203(k)

Buy a fixer-upper and finance renovations in one loan.

Reverse Mortgage

Convert home equity to income for homeowners 62 and older. No monthly payments required.

Non-QM Loans

Alternative documentation mortgages for self-employed borrowers, investors, and those with non-traditional income. Qualify using bank statements, P&L statements, rental income, or assets instead of tax returns.

Min Down: 10%Min Credit: 620Max Loan: $3M+

Best For

Self-employed borrowers
Business owners who write off expenses
Real estate investors
Foreign nationals and ITIN holders

Key Benefits

No tax returns required
Bank statement income qualification
Property-based DSCR lending
Flexible documentation options

Available Products

Bank Statement Loans

Qualify using 12–24 months of bank deposits instead of tax returns.

Profit & Loss Mortgage

Use a CPA-prepared P&L statement for faster qualification.

DSCR Loans

Qualify based on rental income covering the mortgage. No personal income docs.

Asset Depletion

Use liquid assets to qualify. Perfect for retirees with significant savings.

ITIN Mortgage

Homeownership for ITIN holders without Social Security numbers.

Specialty Loans

Specialized financing for unique situations: building a new home, renovating a fixer-upper, bridging between properties, or purchasing land. These loans cover scenarios that standard mortgages don't.

Min Down: 3.5%Min Credit: 620Max Loan: ARV-based

Best For

Custom home builders
Fixer-upper buyers
Move-up buyers bridging properties
Land and farm purchases

Key Benefits

One-time close construction loans
Finance purchase + renovations together
Short-term bridge financing
Manufactured home options

Available Products

Construction Loans

Build your custom home with a 1-time close loan covering land, construction, and permanent financing.

Renovation Loans

FHA 203(k) or HomeStyle options to buy and renovate with one loan.

Bridge Loans

Short-term financing to buy your new home before selling your current one.

Land Loans

Purchase raw or improved land for future building.

Manufactured Home Loans

FHA, VA, and conventional options for manufactured homes on permanent foundations.

Investment Property Loans

Financing built for real estate investors, not owner-occupants. From single-family rentals to commercial buildings, these loans focus on property cash flow and portfolio growth.

Min Down: 15%Min Credit: 620Max Loan: $5M+

Best For

Buy-and-hold investors
House flippers
Multifamily investors
Foreign investors

Key Benefits

DSCR: No personal income verification
Close in LLC for liability protection
Unlimited financed properties
Short-term fix & flip options

Available Products

DSCR Loan

Qualify based on rental income, not personal income. Unlimited properties, close in LLC.

Investment Property

Conventional financing for 1–4 unit rental properties.

Fix & Flip

Short-term bridge financing based on after-repair value (ARV).

Multifamily (5+)

Commercial terms for apartment buildings and large multifamily properties.

Vacation Rental

DSCR programs that accept Airbnb/VRBO income projections.

Refinance Options

Replace your existing mortgage with a new one to lower your rate, reduce your payment, shorten your term, or access home equity. VA and FHA streamline programs offer simplified refinancing.

Min Down: EquityMin Credit: 580Max Loan: 97% LTV

Best For

Homeowners with above-market rates
Those looking to access equity
VA/FHA borrowers wanting streamlined refis
Debt consolidation

Key Benefits

Lower monthly payments
Access cash from home equity
Streamline options with minimal docs
Remove PMI when reaching 20% equity

Available Products

Rate Reduction Refinance

Lower your interest rate and reduce your monthly payment.

Cash-Out Refinance

Access up to 80% of your home equity as cash.

HELOC

A credit line backed by your home. Draw as needed, pay interest only on what you use.

VA IRRRL

Streamlined VA refinance with no appraisal, no income docs, and minimal fees.

FHA Streamline

Simplified FHA refinance often waiving appraisal requirements.

Quick Comparison Chart

See how the major loan categories stack up against each other at a glance.

Feature	Conventional	Government	Non-QM	Investment
Down Payment	3–20%	0–3.5%	10–30%	15–25%
Min Credit Score	620	580	620	620
Income Documentation	W-2, Tax Returns	W-2, Tax Returns	Bank Statements, P&L	DSCR (None)
PMI/MI Required	If <20% down	FHA: Yes, VA: No	Varies	Varies
Property Types	1–4 units	1–4 units (VA/FHA)	All types	Investment only
Self-Employed Friendly	With 2yr history	With 2yr history	✓ Ideal	✓ Ideal
Loan Limits	$766K conforming	No limit (VA)	$3M+	$5M+
Closing Time	30–45 days	30–60 days	21–30 days	7–30 days

Not Sure Which Loan Is Right for You?

Take our 2-minute quiz for personalized loan recommendations, or speak with a loan specialist who can walk you through your options.

Last updated June 10, 2026Reviewed by Moe Hernandez

Comprehensive Guide

The Complete Guide to Mortgage Loan Types

Compare conventional, government-backed, non-QM, and investment loans side by side. Find the right mortgage for your situation with our detailed comparison.

15 min readUpdated June 2026Last reviewed: June 2026Reviewed by Moe Hernandez

Understanding Your Mortgage Options

Choosing the right mortgage is one of the most important financial decisions you'll make. With dozens of loan programs available, finding the best fit starts with understanding your options.

Whether you're a first-time buyer, self-employed entrepreneur, military veteran, or real estate investor, there's a loan program built for your situation. Let's explore each category.

25+

Loan Programs

Min Down Payment

580

Min Credit Score

$10M+

Max Loan Amount

Conventional Loans

Min Down: 3%Min Credit: 620Max Loan: $766K conforming

Best For

W-2 employees with stable income
Credit scores 620+
Down payments of 3–20%
Primary residences and investment properties

Key Benefits

PMI can be removed at 20% equity
No upfront funding fees
Flexible property types (1–4 units)
Terms from 10–40 years

Available Products

Fixed-Rate Mortgage

Lock in your rate for 15, 20, or 30 years. Predictable payments that never change.

Adjustable-Rate Mortgage (ARM)

Lower initial rates with 5/1, 7/1, or 10/1 fixed periods before annual adjustments.

Jumbo Loans

For loan amounts above $766,550. Built for higher-value homes.

Piggyback (80/10/10)

Avoid PMI with 10% down using a first and second mortgage combo.

Doctor's Loan

Special terms for physicians with student debt and high future earning potential.

Government-Backed Loans

Min Down: 0%Min Credit: 580Max Loan: No limit (VA)

Best For

Veterans and active military (VA)
First-time homebuyers (FHA)
Rural property buyers (USDA)
Borrowers with lower credit scores

Key Benefits

Zero down payment options (VA, USDA)
Credit scores as low as 580 (FHA)
Below-market rates
Government guarantee reduces lender risk

Available Products

VA Home Loans

The top mortgage option for veterans. $0 down, no PMI, no loan limits.

FHA Loans

3.5% down with credit scores from 580. A strong option for first-time buyers.

USDA Loans

100% financing in eligible rural and suburban areas with income limits.

FHA 203(k)

Buy a fixer-upper and finance renovations in one loan.

Reverse Mortgage

Convert home equity to income for homeowners 62 and older. No monthly payments required.

Non-QM Loans

Min Down: 10%Min Credit: 620Max Loan: $3M+

Best For

Self-employed borrowers
Business owners who write off expenses
Real estate investors
Foreign nationals and ITIN holders

Key Benefits

No tax returns required
Bank statement income qualification
Property-based DSCR lending
Flexible documentation options

Available Products

Bank Statement Loans

Qualify using 12–24 months of bank deposits instead of tax returns.

Profit & Loss Mortgage

Use a CPA-prepared P&L statement for faster qualification.

DSCR Loans

Qualify based on rental income covering the mortgage. No personal income docs.

Asset Depletion

Use liquid assets to qualify. Perfect for retirees with significant savings.

ITIN Mortgage

Homeownership for ITIN holders without Social Security numbers.

Specialty Loans

Specialized financing for unique situations: building a new home, renovating a fixer-upper, bridging between properties, or purchasing land. These loans cover scenarios that standard mortgages don't.

Min Down: 3.5%Min Credit: 620Max Loan: ARV-based

Best For

Custom home builders
Fixer-upper buyers
Move-up buyers bridging properties
Land and farm purchases

Key Benefits

One-time close construction loans
Finance purchase + renovations together
Short-term bridge financing
Manufactured home options

Available Products

Construction Loans

Build your custom home with a 1-time close loan covering land, construction, and permanent financing.

Renovation Loans

FHA 203(k) or HomeStyle options to buy and renovate with one loan.

Bridge Loans

Short-term financing to buy your new home before selling your current one.

Land Loans

Purchase raw or improved land for future building.

Manufactured Home Loans

FHA, VA, and conventional options for manufactured homes on permanent foundations.

Investment Property Loans

Financing built for real estate investors, not owner-occupants. From single-family rentals to commercial buildings, these loans focus on property cash flow and portfolio growth.

Min Down: 15%Min Credit: 620Max Loan: $5M+

Best For

Buy-and-hold investors
House flippers
Multifamily investors
Foreign investors

Key Benefits

DSCR: No personal income verification
Close in LLC for liability protection
Unlimited financed properties
Short-term fix & flip options

Available Products

DSCR Loan

Qualify based on rental income, not personal income. Unlimited properties, close in LLC.

Investment Property

Conventional financing for 1–4 unit rental properties.

Fix & Flip

Short-term bridge financing based on after-repair value (ARV).

Multifamily (5+)

Commercial terms for apartment buildings and large multifamily properties.

Vacation Rental

DSCR programs that accept Airbnb/VRBO income projections.

Refinance Options

Replace your existing mortgage with a new one to lower your rate, reduce your payment, shorten your term, or access home equity. VA and FHA streamline programs offer simplified refinancing.

Min Down: EquityMin Credit: 580Max Loan: 97% LTV

Best For

Homeowners with above-market rates
Those looking to access equity
VA/FHA borrowers wanting streamlined refis
Debt consolidation

Key Benefits

Lower monthly payments
Access cash from home equity
Streamline options with minimal docs
Remove PMI when reaching 20% equity

Available Products

Rate Reduction Refinance

Lower your interest rate and reduce your monthly payment.

Cash-Out Refinance

Access up to 80% of your home equity as cash.

HELOC

A credit line backed by your home. Draw as needed, pay interest only on what you use.

VA IRRRL

Streamlined VA refinance with no appraisal, no income docs, and minimal fees.

FHA Streamline

Simplified FHA refinance often waiving appraisal requirements.

Quick Comparison Chart

See how the major loan categories stack up against each other at a glance.

Feature	Conventional	Government	Non-QM	Investment
Down Payment	3–20%	0–3.5%	10–30%	15–25%
Min Credit Score	620	580	620	620
Income Documentation	W-2, Tax Returns	W-2, Tax Returns	Bank Statements, P&L	DSCR (None)
PMI/MI Required	If <20% down	FHA: Yes, VA: No	Varies	Varies
Property Types	1–4 units	1–4 units (VA/FHA)	All types	Investment only
Self-Employed Friendly	With 2yr history	With 2yr history	✓ Ideal	✓ Ideal
Loan Limits	$766K conforming	No limit (VA)	$3M+	$5M+
Closing Time	30–45 days	30–60 days	21–30 days	7–30 days

Not Sure Which Loan Is Right for You?

Take our 2-minute quiz for personalized loan recommendations, or speak with a loan specialist who can walk you through your options.

Last updated June 10, 2026Reviewed by Moe Hernandez