3 Types of Mortgage Loans for Homebuyers

April 17, 2023

Mortgages aren’t “one size fits all.” Your situation might be different than the next homebuyer’s, and your mortgage loan should reflect that. There are many different types of loan programs, from conventional to niche, and we have them all broken down for you. 


Conventional loans are the most common. In fact, according to Ellie Mae, almost 70% of all mortgages are conventional. These loans offer fixed and adjustable rate mortgage (ARM) options for primary residences, second homes, or even rental properties in some cases. With most conventional loans, you’ll need a 20% down payment to avoid mortgage insurance (MI). However, we offer some unique no- and low-down-payment conventional loans, some without MI.  


Government-backed mortgages allow us to offer loans to a wider array of homebuyers with varying financial situations. Because the government guarantees the loan, lenders are encouraged to offer no- and low-down-payment solutions, some with more flexible credit guidelines. Some examples include: 

  • FHA (3.5% down) – FHA loans are insured by the Federal Housing Administration. The requirements are less strict than they are for conventional loans, offering options for those with less-than-perfect credit or a smaller down payment. 
  • VA (0% down) – VA loans are exclusive to veterans, including active-duty military personnel, reservists, members of the Coast Guard, and some surviving spouses of veterans. Backed by the U.S. Department of Veteran Affairs, these loans are a way to help those who served our country achieve their homeownership goals. There’s no penalty fee if you pay the loan off early, and no private mortgage insurance requirements. 
  • USDA (0% down) – USDA loans, guaranteed by the U.S. Department of Agriculture, aren’t just for farmers — they are actually applicable in most rural areas. USDA loans tend to have better terms than conventional or FHA loans and have lower credit score requirements. 


Our goal at Waterstone Mortgage is to get our clients into homes, period — that’s why we offer so many niche loan programs. We know your situation might not fit into a cookie-cutter mold, so you may find better financing options with some of our specialty mortgages, such as: 

  • Jumbo – Jumbo loans are loans that go above the conforming limit (which is currently $726,200, except in high-cost areas). Instead of having our homebuyers take out multiple mortgages to finance their entire loan amount, we offer jumbo financing for loan amounts up to $2.5 million. 
  • Medical Professional Program – Our Medical Professional loan program (known informally as the “doctor loan”) provides low-down-payment financing options for qualified doctors and dentists who have completed their residency.  

Ready to get started with your homebuying process? Waterstone Mortgage offers all the above programs and more! Contact a local mortgage loan professional today to learn more.