Every buyer’s financial situation is different — and the right loan type can save you tens of thousands of dollars over the life of your mortgage. Below is an overview of the primary loan programs we work with.
| Loan Type | Best For | Key Benefit |
|---|---|---|
| Fixed-Rate Mortgage | Long-term stability | Consistent payment for the full loan term |
| Adjustable-Rate (ARM) | Short-term ownership or refinance plans | Lower initial rate for 5–10 years |
| FHA Loan | First-time buyers, rebuilding credit | 3.5% minimum down payment |
| VA Loan | Veterans, active-duty, eligible spouses | Zero down payment, no PMI |
| USDA Loan | Rural/suburban buyers in qualifying areas | Zero down payment, low rates |
| Jumbo Mortgage | High-value property purchases | Financing above conforming limits |
| Conventional Loan | Strong credit, solid down payment | Widest lender competition, best rates |
| Interest-Only Mortgage | Specific investment or income strategies | Lower initial payments |
| Reverse Mortgage | Homeowners 62+, equity conversion | Convert home equity to income |
| Piggyback / Combo Loan | Avoiding PMI with <20% down | Two-loan structure (80/10/10) |
| Construction Loan | Building a new home | Converts to standard mortgage at completion |
| Home Equity Loan | Existing homeowners, large expenses | Borrow against accumulated equity |
| Bridge Loan | Buying before selling current home | Short-term gap financing |
| Graduated Payment Mortgage | Buyers expecting income growth | Payments start low and rise |
| Assumable Mortgage | Favorable rate from an existing seller loan | Take over seller’s rate below market |
Loan Types in Detail
Fixed-Rate Mortgage
A fixed-rate mortgage provides stability with a consistent interest rate and monthly payment over the entire loan term. This is the most popular choice for buyers who plan to stay in their home long-term and want a predictable monthly budget.
Adjustable-Rate Mortgage (ARM)
ARMs offer a lower initial fixed-rate period (typically 5, 7, or 10 years), after which the rate adjusts based on market indexes. This can be a smart strategy for buyers who plan to sell or refinance before the adjustment period.
FHA Loans
Backed by the Federal Housing Administration, FHA loans allow down payments as low as 3.5% and have more flexible credit qualification requirements. Ideal for first-time homebuyers or those with limited savings or past credit challenges.
VA Loans
Available exclusively to eligible veterans, active-duty service members, and qualifying surviving spouses. VA loans frequently offer favorable rates, zero down payment, and no private mortgage insurance (PMI). One of the most powerful loan benefits available to those who qualify.
USDA Loans
USDA loans offer zero-down-payment financing for buyers in qualifying rural and suburban areas. These are significantly underutilized — many suburban California areas qualify. Low rates and reduced mortgage insurance costs make them highly competitive.
Jumbo Mortgages
Jumbo mortgages are for loan amounts exceeding the conforming loan limits set by Fannie Mae and Freddie Mac. Required for many California purchases in higher-cost markets. Competitive rates for buyers with strong credit and financial profiles.
Conventional Loans
Conventional loans are not government-backed and are underwritten to Fannie Mae or Freddie Mac guidelines. They typically require stronger credit scores and a down payment, but often offer the best rates for well-qualified borrowers.
Popular Mortgage Types
| Mortgage Type | Description |
|---|---|
| Fixed-Rate Mortgage | A fixed-rate mortgage provides stability with a consistent interest rate and monthly payments over the entire loan term. This is an ideal choice for those who prefer predictability in their monthly budget. |
| Adjustable-Rate Mortgage (ARM) | An Adjustable-Rate Mortgage offers an initial fixed-rate period, followed by adjustments based on market conditions. It can be a suitable option for those anticipating changes in interest rates. |
| FHA Loans | Backed by the Federal Housing Administration, FHA loans are designed to assist first-time homebuyers with lower down payments and more flexible qualification requirements. |
| VA Loans | VA loans are available to eligible veterans, active-duty service members, and their spouses. These loans often come with favorable terms, including zero down payment options. |
| USDA Loans | USDA loans are tailored for homebuyers in rural and suburban areas. They provide low-interest, zero-down payment financing to promote homeownership in qualifying regions. |
| Jumbo Mortgages | Jumbo mortgages are for homebuyers requiring loan amounts that exceed conventional loan limits. They are suitable for high-value properties. |
| Conventional Loans | Conventional loans are not government-backed and typically require a higher down payment. They are ideal for borrowers with strong credit and financial stability. |
| Interest-Only Mortgages | Interest-only mortgages allow borrowers to pay only the interest for a specified period. After this, payments include both principal and interest. These can be advantageous for certain financial strategies. |
| Reverse Mortgages | Reverse mortgages are available to seniors and allow them to convert home equity into cash. This type of mortgage is repaid when the borrower sells the home or passes away. |
| Combo / Piggyback Mortgages | Combo mortgages involve taking out two separate loans simultaneously, often to avoid private mortgage insurance (PMI). A common structure is an 80-10-10 loan, consisting of 80% first mortgage, 10% second mortgage, and a 10% down payment. |
| Construction Loans | Construction loans provide financing for building a new home. They typically have interest-only payments during the construction phase and then convert to a regular mortgage once construction is complete. |
| Home Equity Loans | Home equity loans allow homeowners to borrow against the equity in their homes. They are often used for major expenses, such as home improvements or debt consolidation. |
| Bridge Loans | Bridge loans are short-term loans that provide financing between the purchase of a new home and the sale of the current home. They help bridge the financial gap during the transition. |
| Interest-Only Mortgages | Interest-only mortgages allow borrowers to pay only the interest for a specified period. After this, payments include both principal and interest. These can be advantageous for certain financial strategies. |
| Second Mortgages | Second mortgages, also known as home equity loans or lines of credit, allow homeowners to borrow against the equity in their homes for various purposes, such as home improvements or debt consolidation. |
| Graduated Payment Mortgages | Graduated Payment Mortgages start with lower initial payments that gradually increase over time. This type of mortgage is suitable for borrowers expecting their income to rise in the future. |
| Assumable Mortgages | Assumable mortgages allow a homebuyer to take over the existing mortgage of a seller. This can be advantageous when interest rates are lower than the current market rates. |
For personalized advice on selecting the right mortgage for your unique situation, please contact our experienced mortgage loan officers. The proper type of mortgage, rates, and eligibility depend on various factors. We encourage you to make an appointment using our website to learn more about what is suitable for your case.