Mortgages, Plainly

I'm not a lender and I won't pretend to be one. But I sit across from a lot of buyers who walk in confused about which mortgage type is for them, and the explanations they got from the lender's marketing page didn't help. Here's the plain-language version.

Conventional

The default. Backed by Fannie Mae or Freddie Mac. Usually requires 5% down (sometimes 3%), credit score around 620 minimum, and if you put down less than 20% you pay PMI until your loan-to-value gets to 80%. Then PMI drops off. Conventional is the right answer for most buyers with decent credit and a few percent saved.

FHA

Government-backed (Federal Housing Administration). Lower down payment minimums (3.5%) and more flexible credit requirements — you can qualify with a 580 score. The catch: FHA mortgage insurance is permanent for the life of the loan in most cases, not just until you hit 20% equity. So FHA is cheaper to get into and more expensive to live in. It's the right answer if you can't get conventional approval, but if you can get conventional, take it.

VA

For active-duty military, veterans, and qualifying surviving spouses. Zero down required. No PMI. Competitive rates. There's a one-time funding fee that can be rolled into the loan, and the property has to meet certain VA appraisal standards which sometimes slow things down a few days. If you qualify for VA, use it. It's one of the best mortgage products in the country and most people who qualify don't realize how good a deal it is.

USDA

For homes in designated rural areas (which often includes places that don't feel rural — check the map, you might be surprised). Zero down required, income limits apply. If the property qualifies and your income is within the limit, this is a fantastic program. The geographic restriction is the main filter.

Jumbo

For loan amounts above the conventional limit (currently around $766k in most areas, higher in expensive markets). Stricter qualifying — usually 700+ credit, larger down payment, more reserves required. Rates are sometimes slightly higher, sometimes slightly lower than conventional. If you're in jumbo territory you're working with a lender who specializes in this, not your default branch officer.

ARM (Adjustable Rate)

Fixed for an initial period (5, 7, or 10 years) then adjusts. ARMs make sense if you're confident you'll move or refinance before the adjustment period. They are not the answer if you want to stay put for 15 years and not think about it. The initial rate is usually 0.5-1% lower than the 30-year fixed equivalent. Don't get talked into one without doing the math on what the adjustment cap actually means for your worst-case payment.

The bottom line

Talk to two lenders. Not one, not five. Two is the magic number that lets you sanity-check rates and fees without losing your weekend. Get the loan estimates side by side and compare the same line items. The product that's right for you is almost always obvious once you have both pieces of paper in front of you.