Mortgage Resource Guide
Loan Types
154 articles10 sections
Conventional and jumbo loans
- What Are the Requirements of a Fannie Mae or Freddie Mac Loan?Start here You can put as little as 3% down, carry a DTI up to 50%, pay PMI below 20% down, and borrow up to $832,750 in most counties in 2026.
- What Are Fannie Mae and Freddie Mac? Fannie Mae and Freddie Mac are companies chartered by Congress that buy mortgages from lenders and guarantee them as securities. Both are in conservatorship.
- What Is a Jumbo Loan or a Super Jumbo Loan? A jumbo loan is above the 2026 conforming limit ($832,750 in most counties, up to $1,249,125 in high-cost areas); super jumbo is a lender label for larger ones.
- What Is the HomePath Ready Buyer Program? A Fannie Mae offer of up to 3% of the price toward closing costs for first-time buyers who finish HomeView and buy a HomePath home to live in.
Government-backed loans and programs
- Can I Use a VA Loan to Purchase a Rental Property? Not for a home you will only rent out. You must plan to live in it, but a VA loan can buy a 2-4 unit home where you live in one unit and rent the rest.
- How Long Do I Need to Live on the Property If I Get an FHA Loan? At least one year. One borrower must move in within 60 days of closing and intend to live there a year; after that you can rent the home out.
- What Are the Requirements of a USDA Loan? A USDA loan needs no down payment but requires a primary residence in an eligible rural area and household income under USDA's limit for your county.
- What Are the Requirements of a VA Loan? You need qualifying military service shown on a COE, a lender's credit approval, and a home you will live in. Full entitlement means no down payment.
- What Are the Requirements of an FHA Loan? FHA loans need a 580 score for 3.5% down (500 to 579 needs 10%), a 1.75% upfront premium plus annual MIP, and a loan within your county's 2026 limit.
- What Are the Requirements of an FHA Section 203(k) Loan? A 203(k) loan needs FHA credit rules (580 score for 3.5% down), a home you will live in, and repairs of $5,000 or more (Standard) or up to $75,000 (Limited).
- What Are the Requirements of the Good Neighbor Next Door Program? Full-time police, pre-K-12 teachers, firefighters, and EMTs can buy listed HUD homes at 50% off if they live there 36 months and owned no home in the prior year.
- What Is an Energy-Efficient Mortgage? An energy-efficient mortgage adds the cost of energy upgrades to an FHA, VA, or conventional loan. FHA caps the add-on near 5% of value; VA caps it at $6,000.
Interest rates and rate types
- How Are Mortgage Interest Rates Calculated? Lenders start from a market rate tied to mortgage bond prices, then add fees for your credit score, down payment, property, and loan type.
- What Are the Advantages and Disadvantages of an Adjustable-Rate Mortgage? An ARM usually starts with a lower rate and payment than a fixed loan, but after 3 to 10 years the rate resets to an index plus a margin and can rise up to the caps.
- What Is the Difference Between Fixed-Rate and Adjustable-Rate Mortgages? A fixed rate never changes; an ARM starts lower, then adjusts. In October 2026 a 5/1 ARM averaged 6.46% vs 7.41% fixed. How long you keep the loan decides which wins.
- What Is the Difference Between Mortgage Interest Rates and APRs? The interest rate is the yearly cost of the loan balance. The APR adds points, lender fees, and mortgage insurance, spread over the full loan term.
- Which Banks Give You the Best Mortgage Rates? No bank is always cheapest. Prices for similar borrowers often differ by about 0.5 point across large lenders, so compare same-day Loan Estimates from 3 or more.
Mortgage insurance
- How Do I Calculate Mortgage Insurance? Multiply the loan amount by the annual premium rate and divide by 12. FHA charges 1.75% upfront plus 0.50% to 0.75% a year; PMI depends on credit and LTV.
- How Can I Avoid or Get Rid of PMI? Put 20% down, use a VA loan, or take a piggyback loan to skip PMI. If you pay it now, ask to cancel at 80% of original value; it ends automatically at 78%.
- Should I Buy Mortgage Insurance? Lenders require mortgage insurance below 20% down. Decide whether to buy now or save more, and compare PMI with FHA by credit score and how long you keep the loan.
- What Is Mortgage Insurance and How Does It Work? Mortgage insurance protects the lender if you default. You pay it on conventional loans with under 20% down and on all FHA and USDA loans; VA charges a funding fee.
Other mortgage types
- What Is a Reverse Mortgage? A reverse mortgage lets homeowners 62 and older borrow against home equity with no monthly payments; the loan comes due when the last borrower moves out or dies.
- What Is the Difference Between a Legal and an Equitable Mortgage? A legal mortgage is a formal, recorded mortgage or deed of trust. An equitable mortgage is a deal a court treats as a mortgage because the property secured a debt.
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