Conventional, FHA, VA, USDA and jumbo loans compared side by side — requirements, costs and when each makes sense.
Last updated: October 2026 · Editorial standards Buying a fixer-upper can be a great way to build equity — but it requires a special type of financing that combines the purchase and renovation costs into one loan. Two programs dominate this space: the FHA 203(k) and the Fannie Mae HomeStyle. What Is a Renovation Loan?…
Last updated: October 2026 · Editorial standards Building a home from the ground up requires a different type of financing than buying an existing property. Construction loans are short-term, specialized products — and they work very differently from a traditional mortgage. What Is a Construction Loan? A construction loan is a short-term loan that provides…
Last updated: October 2026 · Editorial standards If you’ve built equity in your home, you have two main ways to tap it: a home equity loan or a home equity line of credit (HELOC). Both let you borrow against your home’s value, but they work very differently. What Is a Home Equity Loan? A home…
Last updated: October 2026 · Editorial standards Buying a new home while still owning your current one puts you in a financial bind. You need the equity from your existing home to fund the down payment on the new one — but you haven’t sold it yet. A bridge loan solves that problem by giving…
Last updated: October 2026 · Editorial standards An assumable mortgage lets a buyer take over the seller’s existing home loan — including the interest rate, remaining balance, and loan terms — rather than obtaining new financing at current market rates. In a high-interest-rate environment, assuming a seller’s low-rate mortgage can save tens of thousands of…
Last updated: October 2026 · Editorial standards A reverse mortgage lets homeowners aged 62 or older convert a portion of their home equity into cash — without selling the home or making monthly mortgage payments. Instead of you paying the lender each month, the lender pays you (or makes funds available). The loan balance grows…
Buying an existing home and building one from scratch are financed entirely differently. A standard mortgage uses the existing property as collateral — the lender knows exactly what they’re securing. A construction loan funds a home that doesn’t exist yet, in phases, as it’s built. The risk profile is different, the process is different, and…
An interest-only mortgage lets you pay just the interest on your loan for a fixed initial period — typically 5 to 10 years — before converting to a fully amortizing payment that includes principal. During the interest-only period, your loan balance doesn’t decrease at all. This creates a significantly lower payment in the early years,…
Buying a fixer-upper is appealing in theory — lower purchase price, built-in equity potential, customization. In practice, most buyers can’t qualify for a mortgage on a home that’s not in livable condition, and they don’t have the cash reserves to fund renovation separately. The FHA 203(k) loan exists specifically to solve this problem: it finances…
Most buyers know FHA as the go-to for low down payment mortgages. But two conventional programs offer 3% down with better long-term economics for buyers who qualify: Fannie Mae’s HomeReady and Freddie Mac’s Home Possible. Both allow 3% down, both cancel PMI when you reach 20% equity, and both carry lower mortgage insurance costs than…