LoansByArmen | Armen Aghakiant Loan Officer — Partnered with Equity Smart Home Loans

Not all home loans are the same. Each has its own trade-offs and benefits. Here's just a small list of some of the loan programs out there:

Conventional

Conventional loans are any mortgage loans that are not insured or guaranteed by the government (such as under Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs).

They come in two forms: conforming and non-conforming. A conforming loan “conforms” to the set of standards put in place by the Federal Housing Finance Agency (FHFA), which includes credit, debt and loan size. For 2024, the conforming loan limits are $766,550 in most areas and $1,149,825 in high-cost areas.

Non-conforming loans do not meet FHFA standards.

FHA

FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA). These loans require lower minimum credit scores and down payments compared to conventional loans.

One thing to keep in mind: all FHA loans require borrowers to pay FHA mortgage insurance premiums (MIP). One is the Upfront mortgage insurance premium and the second is the annual mortgage insurance premium. MIP is designed to protect the lender should the borrower default.

VA

A VA loan is another type of government loan guaranteed by the U.S. Department of Veterans Affairs (VA). The VA does not directly issue VA loans but because they are backed by a government agency lenders feel more comfortable offering them. There are different types of VA loans that could work depending on your particular scenario.