FDIC-Insured - Backed by the full faith and credit of the U.S. Government
FDIC-Insured - Backed by the full faith and credit of the U.S. Government
The best mortgage for you depends on your circumstances, future plans and whether you’re planning on living in or renting out the property.
As a mortgage is a long-term agreement, it’s important to take time and think about what you want, and how much you’ll be able to afford.
These mortgages come with lower down-payment options to help make home ownership more attainable.
Affordable and regional mortgages are often designed for first-time home buyers, but they may also help those with non-traditional credit, or people looking to use home loan grants for down payments and/or closing costs.
Private Mortgage Insurance (PMI) may be required for loans with less than a 20% down-payment.
There are many different types of affordable lending products, such as:
Keep in mind: not everyone qualifies for these. Learn more about our affordable and regional mortgages and find out if you’re eligible.
Conforming mortgages are conventional mortgages that meet the Fannie Mae and Freddie Mac guidelines, with loan limits set by the Federal Housing Finance Agency (FHFA).
Conforming loans may have lower interest rates than standard mortgages. There's additional criteria you'll need to meet in order to qualify, such as:
With a conforming mortgage, you can choose between the stability of a fixed rate, or the flexibility of an adjustable rate mortgage.
Here’s how each one works:
Jumbo mortgages, also known as portfolio loans, are designed for larger loan amounts. Guidelines can vary as they are set by the bank or lender offering the loan.
For example, reserve requirements are when you need to hold a set amount of assets, after you've paid the down payment and closing costs. This could be a specific number of months based on the principal, interest, tax, and insurance payment (PITI) of your loan.
Deciding on a mortgage also means considering your payment choices. These options should be considered carefully:
Your monthly repayments include a portion that's applied to the principle, as well as the monthly interest of your loan.
This payment method ensures your mortgage is fully paid off by the end of your loan period so you’d own the property outright.
Your monthly payment only covers the interest charged on your loan for that month, so the amount you owe in principle doesn’t reduce over time.
Your loan may be an 'interest-only payment' for a certain amount of time. Depending on the loan type, you'll then need to refinance this with a new loan, or your payments may rise based off the principle and number of years left.
You may be allowed to:
If you’re buying an investment property to lease out, you may need to put down a larger down payment, and could face higher interest rates.
Rental property investments can be a huge commitment, so it’s important to consider the responsibilities, costs and risks that come with being a landlord.
