Types of Home Loans

Applying for a mortgage can feel overwhelming, especially if it's your first time buying a home. There are several different types of mortgages, and they all have unique benefits and application requirements. Here's an overview of some of the most common types of home loans.


A conventional Home Loan is typically an agreement with a private lender, such as Sun West Mortgage. To qualify for a conventional mortgage, you may need to meet certain standards relating to your credit score, income, and down payment. If you have a fairly stable financial position, a conventional loan may be a good option.


An FHA loan is one type of mortgage that is backed (insured) by the federal government. The Federal Housing Administration guarantees these loans, which usually have eligibility requirements that are less strict than those of a conventional loan. In many cases, an FHA loan is a good choice for first-time borrowers.


Another type of government-backed mortgage is a VA loan. This type of loan is available to those who have served in the U.S. military. According to the Department of Veterans Affairs, VA loans may be available for active-duty servicemembers, veterans, and surviving spouses. In some cases, VA loans may offer better terms than other mortgage options.
Before you start signing mortgage paperwork, it can help to understand the various options. FHA, VA, and conventional loans are all different and may provide distinct benefits depending on your circumstances.