A loan program is a set of rules: how much you need to put down, what credit and income are required, what insurance applies, what kind of property qualifies, and how much you can borrow. Programs exist because different borrowers have different needs, and some are backed by government agencies or sponsored enterprises to make homeownership more accessible. Bethany Sanchez (NMLS #2425491) at Sunset Home Lending explains the options, helps you compare them honestly, and recommends the one that fits your goals, even when that is not the most profitable choice for us.
How to use this page: Skim the program cards above, read the plain-English guide below, and then open a program page for details. If you are still unsure, talk with Bethany. It costs nothing to ask questions.
Five questions that narrow your choices
You can usually reduce the list of programs to two or three by answering a handful of questions:
- Will you live in the property? Owner-occupied homes unlock the widest range of programs. Investment properties use different investor loans.
- How much cash can you bring? Some programs allow low or no down payments, while others reward larger down payments with lower mortgage insurance or better terms.
- What is your credit profile? Some programs are more flexible on credit scores and history, while others work best with strong credit.
- Do you have special eligibility? Military service can unlock VA loans, and income and location can unlock USDA loans or down payment assistance.
- How high is the price? Loan limits vary by county and program. Higher-priced homes may need jumbo financing.
Programs at a glance
| Program | Often a good fit for | Mortgage insurance or fee | Learn more |
|---|---|---|---|
| FHA | Buyers with smaller down payments or limited credit history | Upfront and annual premiums | FHA loans |
| Conventional | Buyers with solid credit who want flexibility and cancelable insurance | Private mortgage insurance when the down payment is small | Conventional loans |
| VA | Eligible veterans, active-duty members and some surviving spouses | One-time funding fee (some are exempt) | VA loans |
| USDA | Moderate-income buyers in eligible areas | Upfront and annual guarantee fees | USDA loans |
| Jumbo | Buyers who need a loan above conforming limits | Depends on down payment and lender | Jumbo loans |
| DSCR and investor | Investors buying rentals | Not applicable | DSCR loans |
| Fix and flip, bridge | Investors renovating or bridging to long-term financing | Not applicable | Fix and flip loans |
| Home equity | Homeowners using equity | Not applicable | Home equity |
The terms that decide which program you can use
Understanding a handful of terms makes every program page easier to read.
- Loan-to-value (LTV). The loan amount divided by the home’s value or purchase price, whichever is lower. A bigger down payment means a lower LTV.
- Debt-to-income ratio (DTI). Your monthly debts, including the new housing payment, compared with your gross monthly income.
- Occupancy. Whether the home will be your primary residence, a second home or an investment property.
- Conforming loan limits. Annual limits set for loans that Fannie Mae and Freddie Mac can buy. FHA loan limits are separate, and VA and USDA have their own rules.
- Mortgage insurance and fees. Costs that protect lenders or agencies. They vary by program and affect your monthly payment and total cost.
- Property standards. Government-backed loans have minimum property requirements, so a home with major safety or structural problems may not qualify until it is repaired.
- Reserves. Savings left over after closing. Some programs and loan sizes require them.
Programs by scenario
- “I have a small down payment and average credit.” FHA and some conventional programs may fit. We compare the monthly cost and the long-term cost of mortgage insurance.
- “I served in the military.” A VA loan may provide excellent terms, including no down payment in many cases. Start with our VA loan guide.
- “I want to live outside the city.” USDA loans may open doors in eligible areas, as long as your income fits the limits. See the USDA guide.
- “I’m buying a home above the conforming limit.” A jumbo loan may fit, usually with stronger credit and reserve requirements. See the jumbo guide.
- “I have strong credit and savings.” Conventional loans often provide the best overall value. Read about conventional loans.
- “I am self-employed.” Some borrowers qualify with traditional tax-return documentation, and others may need alternative documentation programs. Talk with us about your income.
- “I’m buying a rental.” Investor financing follows different rules. Start with our investor overview.
Common misconceptions
- “You need 20 percent down.” Many programs allow far less, and some allow none.
- “Government loans are only for first-time buyers.” Repeat buyers can use FHA, VA and USDA loans if they qualify.
- “FHA loans are only for people with bad credit.” FHA loans are popular with many types of borrowers, although the cost of mortgage insurance means they are not always the cheapest option.
- “You should always pick the lowest advertised rate.” The rate is only one part of the cost. Points, fees, mortgage insurance and the loan term all matter. A Loan Estimate lets you compare totals.
- “Pre-approval locks in my rate.” It does not. A rate lock is a separate agreement.
How program rules change
Programs change. FHFA and HUD update loan limits annually, agencies adjust insurance and fee structures, and Fannie Mae and Freddie Mac periodically revise their guidelines. We watch for those changes and update this site, but the date at the top of each page is your cue to double-check before you rely on any detail. When you work with us, we confirm the rules that apply to your loan at the time you apply.
How we help you compare
When you get pre-approved, we review your income, assets, credit and goals and walk you through the programs you qualify for. You will see monthly payments, the cash needed to close, how mortgage insurance affects your costs, and how each choice looks over five, ten and thirty years. We tell you what we recommend and why, and we welcome your questions. If you also want to compare us with another lender, we are happy to help you understand their Loan Estimate too.
Frequently asked questions
Which mortgage program is best for most buyers?
There is no single best program, because the best loan depends on your credit, savings, income, property and plans. Conventional loans often work well for borrowers with solid credit and savings, FHA loans can help buyers with smaller down payments or less-than-perfect credit, VA loans can be a strong choice for eligible veterans, and USDA loans can help in eligible areas.
Do I need 20 percent down to buy a home?
No. Many loan programs allow much smaller down payments, and some allow none for eligible borrowers. Putting 20% down on a conventional loan avoids private mortgage insurance, but it is not required to qualify for most programs.
Can I switch programs after I apply?
Often yes, as long as you have not locked in a closing and your documents still support the new program. If your situation changes or a program turns out to be a poor fit, we can re-run your scenario and explain the trade-offs. Switching late in the process can cost time, so it is better to compare options up front.
What is mortgage insurance?
Mortgage insurance protects the lender if a borrower defaults, and it appears in different forms. Conventional loans use private mortgage insurance that you can request to remove once you reach enough equity, FHA loans charge upfront and annual premiums, USDA loans charge upfront and annual guarantee fees, and VA loans use a one-time funding fee instead.
Are government-backed loans only for first-time buyers?
No. FHA, VA and USDA loans are available to repeat buyers as well as first-time buyers, as long as the borrower and property meet the program's requirements. VA loans are tied to military service, and USDA loans are tied to income and location.
How often do loan programs change?
Program guidelines change regularly. Loan limits are typically updated each year, and agencies and investors adjust credit, insurance and documentation rules from time to time. The pages on this site show an updated date, and we confirm current rules when we review your scenario.
How do I add or request a program that is not listed?
If you are looking for a program that is not listed here, such as renovation financing, a bank-statement loan or a program for a specific profession, ask us. We can tell you whether we offer it or can point you toward a resource that does.