Primary Home Loan Options

Introduction to Primary Home Loans

Purchasing a primary residence is one of the most important financial decisions you will make. Whether you are a first-time homebuyer or looking to refinance, choosing the right mortgage is essential. The Mortgage Calculator offers a wide variety of loan programs designed to meet the diverse needs of homeowners, including conventional loans, FHA loans, VA loans, and Non-QM mortgages.

This guide provides an overview of all available home loan options for a primary residence, highlighting eligibility requirements, loan terms, down payment guidelines, and internal links to help you navigate through all of your mortgage options.

1. Conventional Home Loans

What Is a Conventional Loan?

A conventional loan is a mortgage that is not backed by a government agency and follows the guidelines set by Fannie Mae and Freddie Mac. These loans are popular among borrowers with strong credit profiles and a stable income.

Eligibility Requirements:

  • Minimum credit score of 620 or higher

  • Down payments starting at 3% for first-time homebuyers

  • Debt-to-Income (DTI) ratio under 45%

Loan Limits:

  • Loan limits for conventional loans are determined by FHFA and vary by county. In 2024, the baseline loan limit is $726,200, with higher limits in high-cost areas.

? Learn More About Conventional Loans

2. FHA Loans – Ideal for First-Time Homebuyers

What Is an FHA Loan?

An FHA loan is insured by the Federal Housing Administration and is designed to help low-to-moderate income borrowers purchase a home. FHA loans are popular among first-time homebuyers because they have low down payment requirements and flexible credit guidelines.

Eligibility Requirements:

  • Minimum credit score of 500 with 10% down or 580 with 3.5% down

  • DTI ratio up to 57% with compensating factors

  • Primary residence only

Loan Limits:

  • FHA loan limits vary by county. In 2024, the standard FHA loan limit is $498,257 for most areas and higher in high-cost markets.

? Learn More About FHA Loans

3. VA Loans – No Down Payment for Eligible Veterans

What Is a VA Loan?

A VA loan is a government-backed mortgage offered to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. VA loans provide 100% financing, making them one of the best options for eligible borrowers.

Eligibility Requirements:

  • Valid Certificate of Eligibility (COE) from the Department of Veterans Affairs

  • Minimum credit score guidelines vary by lender but often start at 580-620

  • Primary residence only

Loan Limits:

  • VA loans do not have a maximum loan limit for borrowers with full entitlement. However, loan limits may apply for borrowers with partial entitlement.

? Learn More About VA Loans

4. USDA Loans – No Down Payment in Rural Areas

What Is a USDA Loan?

A USDA loan is a government-backed mortgage program that offers 100% financing to eligible borrowers purchasing homes in designated rural and suburban areas.

Eligibility Requirements:

  • Income must not exceed 115% of the median income for the area

  • Property must be located in an eligible USDA rural area

  • Minimum credit score of 620 or higher is preferred

Loan Limits:

  • There are no loan limits for USDA loans, but income limits apply.

? Learn More About USDA Loans

5. Non-QM Loans – Flexible Options for Self-Employed Borrowers

What Is a Non-QM Loan?

A Non-QM (Non-Qualified Mortgage) loan is a flexible mortgage product that allows borrowers who do not meet traditional loan requirements to qualify based on alternative documentation. Non-QM loans are ideal for self-employed borrowers, real estate investors, and individuals with non-traditional income sources.

Popular Non-QM Loan Types:

Eligibility Requirements:

  • Credit scores as low as 500-620

  • Flexible DTI ratios depending on loan type

  • Higher down payments may be required (typically 10-20% depending on loan type)

? Learn More About Non-QM Loan Options

6. Fixed-Rate vs. Adjustable-Rate Mortgages (ARM)

Fixed-Rate Mortgage

A fixed-rate mortgage offers predictable monthly payments because the interest rate remains the same for the life of the loan. Fixed-rate loans are ideal for borrowers who prefer long-term stability.

? Learn More About Fixed-Rate Mortgages

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage (ARM) typically starts with a lower interest rate during the initial fixed period and then adjusts periodically. ARMs can be a good option for borrowers who expect to move or refinance before the rate adjustment occurs.

? Learn More About Adjustable-Rate Mortgages

7. Jumbo Loans for High-Value Properties

What Is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the FHFA. Jumbo loans are often used to finance luxury homes or high-value properties in expensive real estate markets.

Eligibility Requirements:

  • Minimum credit score of 700+

  • Down payment of at least 10-20%

  • DTI ratio under 45%

? Learn More About Jumbo Mortgage Loans

8. FHA 203(k) Renovation Loans – Finance Repairs and Upgrades

What Is an FHA 203(k) Loan?

An FHA 203(k) loan allows homebuyers to finance both the purchase and renovation of a property with a single mortgage. It is ideal for borrowers purchasing a fixer-upper.

Eligibility Requirements:

  • Minimum credit score of 500-580

  • Property must be used as a primary residence

  • Up to 110% of the after-repair value may be financed

? Learn More About FHA 203(k) Renovation Loans

Apply for a Primary Home Loan Today

Whether you are purchasing your first home or refinancing your current primary residence, The Mortgage Calculator can help you choose the best home loan for your situation. Our experienced team is ready to guide you through the application process and match you with the most competitive rates and terms available.

? Start Your Application Now

 

Frequently Asked Questions About Reconsideration of Value (ROV):