Common loan paths
- Conventional: often best when income, credit, and property fit agency rules
- FHA: useful for eligible buyers who need FHA flexibility
- VA: powerful for eligible service members and veterans
- Jumbo: for loan amounts above conforming limits
- Bank statement and non-QM: for self-employed or complex-income borrowers
- DSCR: for investor loans based on rental property cash flow
- HELOC and cash-out refinance: for home equity access
- Renovation, bridge, hard money, and private money: for timing, property condition, or investor scenarios
How to choose
Pick the loan that closes cleanly and fits the long-term plan. The lowest advertised rate means nothing if the file dies, the payment does not work, or the exit strategy is weak.
Frequently asked questions
How do I choose between a conventional loan and an FHA loan?
Conventional loans often fit borrowers with stronger credit, steady documented income, and enough down payment to avoid or drop mortgage insurance. FHA loans can be helpful for eligible buyers who need more flexible credit or down payment guidelines. The right choice depends on the file, not the ad.
When does a jumbo loan make sense instead of a conforming loan?
A jumbo loan is used when the loan amount is above the conforming limit for the county. Some borrowers below the limit may still choose jumbo for reserve, documentation, or pricing reasons. Compare the fully-underwritten payment, cash to close, and program rules before deciding.
Which loans are used by self-employed borrowers in California?
Self-employed borrowers in California may qualify for conventional loans when tax returns show enough income. When tax returns understate cash flow, bank statement loans, profit-and-loss programs, asset-based loans, and other non-QM options may be reviewed.
What loan options do real estate investors typically compare?
Investors commonly compare DSCR loans that use rental income to help qualify, conventional investment property loans, bridge loans, hard money, private money, and renovation loans. The property, timeline, exit plan, and documentation drive the short list.
Should I pick the loan with the lowest advertised rate?
Not automatically. A low advertised rate can come with points, fees, program limits, or documentation requirements that do not fit your file. Compare the full cost, the payment, the cash to close, and whether the file can actually close under those guidelines.
How long does it take to get pre-approved so I can compare loan programs on a real file?
A real pre-approval review generally requires a short application, credit review, and income, asset, and employment documents. Timelines vary by borrower, program, and how quickly documents come back.