Conventional loans are ideal for borrowers with good credit and stable income who can meet standard lending requirements. These loans are not government-backed and offer flexible terms for various property types. Ideal for borrowers with strong credit and stable income. Typically requires a 620+ credit score. Down payment options range from 3% to 20%. Competitive interest rates and flexible terms. Suitable for primary residences, second homes, and investment properties. Key Points to Remember: Requires a credit score of 620+ Down payment options from 3% to 20% No upfront mortgage insurance with 20% down Tips: Improve your credit score to qualify for better rates Consider a larger down payment to avoid PMI (Private Mortgage Insurance) Pros: ✔ Lower interest rates for qualified borrowers ✔ Flexible loan terms (fixed or adjustable) ✔ Available for various property types Cons: ✘ Stricter credit and income requirements ✘ Larger down payments compared to government loans

FHA loans are government-backed and designed for first-time buyers and those with lower credit scores, offering lower down payment options and more lenient qualifications. Designed for first-time homebuyers and those with lower credit scores. Down payments as low as 3.5%. More lenient credit and income requirements. Requires mortgage insurance (MIP). Government-backed for added lender security. Key Points to Remember: Down payment as low as 3.5% Requires a credit score of 580+ (or 500 with 10% down) Mortgage insurance premiums (MIP) required Tips: Check eligibility for down payment assistance programs Budget for mortgage insurance costs when calculating payments Pros: ✔ Low down payment requirements ✔ Easier credit qualifications ✔ Can be used for 1-4 unit properties Cons: ✘ Mandatory mortgage insurance for the life of the loan ✘ Property must meet specific FHA standards

USDA loans help low-to-moderate-income homebuyers purchase homes in eligible rural and suburban areas with zero down payment. For rural and suburban homebuyers. No down payment required. Income limits apply based on location. Competitive fixed interest rates. Must meet USDA property eligibility requirements. Key Points to Remember: No down payment required Property must be in an eligible rural area Income limits apply based on location Tips: Use the USDA eligibility map to confirm property qualifications Be aware of annual guarantee fees Pros: ✔ 100% financing available ✔ Competitive fixed interest rates ✔ Lower mortgage insurance costs than FHA loans Cons: ✘ Property eligibility restrictions ✘ Strict income limits

VA loans are exclusive to veterans, active-duty service members, and eligible spouses, offering great benefits such as no down payment and no PMI. Available to eligible veterans, active-duty military, and spouses. No down payment and no private mortgage insurance (PMI). Competitive interest rates. Flexible credit requirements. Funding fee may apply, but can be rolled into the loan. Key Points to Remember: No down payment or PMI required VA funding fee may apply (can be financed) Must meet service eligibility requirements Tips: Use VA loan benefits for refinancing options too Ensure your lender is VA-approved for smooth processing Pros: ✔ No down payment required ✔ Lower interest rates compared to conventional loans ✔ Flexible credit requirements Cons: ✘ VA funding fee increases with multiple uses ✘ Only available to eligible military personnel

Bank statement loans are designed for self-employed individuals who may not have traditional income documentation but have consistent cash flow. Ideal for self-employed borrowers. Income verification based on 12 to 24 months of bank statements instead of tax returns. Higher down payment requirements. Flexible credit requirements. Useful for business owners, freelancers, and gig workers. Key Points to Remember: Uses 12-24 months of bank statements instead of tax returns Higher down payments typically required Suitable for freelancers and business owners Tips: Maintain clear records of personal and business expenses Work with lenders experienced in self-employed financing Pros: ✔ No tax returns required ✔ Flexible income verification options ✔ Ideal for self-employed individuals Cons: ✘ Higher interest rates than traditional loans ✘ Larger down payments needed

DSCR loans are perfect for real estate investors as they focus on the property’s income potential rather than the borrower’s personal income. Designed for real estate investors. Qualification based on rental income rather than personal income. No tax returns required. Allows financing for multiple investment properties. Flexible loan terms and property types. Key Points to Remember: Loan qualification based on rental income No tax returns or W-2s required Common for investment properties Tips: Ensure the property generates sufficient rental income Consider properties in high-demand rental areas Pros: ✔ Easier qualification for investors ✔ No personal income verification needed ✔ Can finance multiple properties Cons: ✘ Typically higher interest rates ✘ Requires solid rental cash flow projections

Stated income loans allow borrowers to declare their income without full documentation, making them useful for self-employed individuals with non-traditional income. Borrowers state their income without traditional documentation. Higher down payment requirements. Suitable for self-employed individuals with fluctuating income. Typically carries higher interest rates. May require strong credit and financial reserves. Key Points to Remember: Income stated without traditional verification Higher down payments required Suitable for fluctuating or seasonal incomes Tips: Keep accurate financial records for lender review Be prepared for larger reserve requirements Pros: ✔ No need for extensive documentation ✔ Faster approval process ✔ Flexibility for self-employed borrowers Cons: ✘ Higher interest rates ✘ Limited lender availability

Hard money loans are short-term, asset-based loans used for real estate investments, focusing on the property value rather than borrower credit. Short-term loans for real estate investments. Asset-based lending, with property value as the primary qualification. Fast approval and funding. Higher interest rates and fees. Ideal for fix-and-flip investors or those needing quick capital. Key Points to Remember: Fast approval and funding times Higher interest rates and fees Typically used for fix-and-flip projects Tips: Have a clear exit strategy before applying Work with reputable private lenders Pros: ✔ Quick access to funds ✔ Flexible credit requirements ✔ Suitable for short-term investment projects Cons: ✘ Higher costs and fees ✘ Short repayment terms