Understanding Your Mortgage Loan Options

The right mortgage depends on your finances, the property and your plans. Understanding a few common options makes it easier to have a useful conversation with your loan officer.

Conventional mortgages

Conventional loans are not insured or guaranteed by a federal housing agency. Credit, down payment and other requirements depend on the program. Mortgage insurance may apply when the down payment is below the applicable threshold.

FHA mortgages

FHA loans are insured by the Federal Housing Administration and may offer different credit and down-payment requirements than conventional programs. Mortgage insurance costs are an important part of the comparison. FHA loans are not limited to first-time buyers.

VA mortgages

VA-backed loans are available to eligible veterans, service members and certain surviving spouses. Eligibility must be established. A funding fee may apply unless the borrower qualifies for an exemption, and closing costs can still be due.

Fixed and adjustable rates

A fixed-rate mortgage keeps the interest rate unchanged for the loan term, though taxes and insurance can change your overall payment. An adjustable-rate mortgage has a rate that can change under the loan terms after its initial period. Review adjustment timing, caps and the potential future payment.

Look beyond the program name

• Compare the total monthly payment and cash needed at closing.
• Ask about mortgage insurance and program-specific fees.
• Consider how long you expect to own the home.
• Review the Loan Estimate and ask about anything that is unclear.

Visit our Loan Programs pages or talk with a Legacy Lending Group loan officer for more information. This is general educational information, not a rate quote or guarantee of eligibility. Programs, terms and requirements vary.