What loan types should I know about?

Loan type affects your rate, down payment, appraisal standards, and how competitive your offer looks. On the Monterey Peninsula, where older homes and condition issues are common, some loan types can limit what you can buy or how clean your offer is.

What are the main loan types?

Conventional, FHA, VA, and jumbo loans. Jumbo loans are common here due to higher price points.

What is a conventional loan?

A standard loan not backed by the government. It usually requires stronger credit and offers more flexibility in competitive situations.

What is an FHA loan?

A government-backed loan with lower down payment requirements, but stricter property condition standards and mortgage insurance.

What is a VA loan?

A loan for eligible veterans with no down payment and no mortgage insurance, but specific appraisal and condition requirements.

What is a jumbo loan?

A loan above conforming limits. It often requires strong financials, larger reserves, and more documentation.