Home Loans for Every Buyer
One lender, every mortgage program — conventional, FHA, VA, USDA, jumbo, and non-QM (bank statement, P&L-only and more), plus renovation and ground-up construction. We match you to the right loan and help you cut closing costs with seller concessions.
- Low- and no-down-payment options: VA & USDA 0%, FHA 3.5%, Conventional 3%
- Self-employed programs: bank statement, P&L-only, 1099-only, asset-based
- Renovation, ground-up construction & construction-to-perm
- We shop multiple investors for your best rate & program
- Reduce closing costs with seller concessions & lender credits
Home Loan Application
Home Loans — Quick Guide (2026)
- Owner-occupied focus: Primary residences and second homes — purchase and refinance.
- Every program: Conventional, FHA, VA, USDA, jumbo, and non-QM (bank statement, P&L-only, 1099, asset-based, ITIN).
- Down payment: 0% (VA/USDA), 3% (Conventional 97), 3.5% (FHA); assistance & gift funds allowed.
- Build or renovate: Ground-up construction, construction-to-perm, FHA 203(k) & HomeStyle renovation.
- Cut costs: Seller concessions of up to 3–9% (by loan type) can pay your closing costs.
- Lender: CambridgeHomeLoan.com — direct lender since 1998, NMLS #1826020.
Start here
How to choose the right home loan
The best home loan depends on four things: your down payment, how you document income (W-2 vs self-employed), your credit, and how long you'll keep the loan. A salaried buyer with 5% down and strong credit may fit conventional; a veteran fits VA at 0% down; a self-employed borrower with heavy write-offs fits a bank statement or P&L-only loan; a buyer building a home fits construction-to-perm. Below is every owner-occupied program, explained.
Rate structure
Fixed-rate & adjustable-rate mortgages
| Loan type | How it works & who it's for |
|---|---|
| 30-year fixed | Same rate and payment for 30 years. The default for long-term owners who want certainty. |
| 15- & 20-year fixed | Higher payment, much less interest, faster payoff. For buyers who want to build equity fast. |
| 40-year fixed / 40-yr interest-only | Lowest payment via a longer term or IO period. Non-QM; for cash-flow-focused buyers. |
| Adjustable-rate (5/6, 7/6, 10/6 ARM) | Lower fixed intro rate for 5-10 years, then adjusts on SOFR + margin within caps. Best if you'll sell/refi before it adjusts. |
The mainstream
Conventional & conforming loans
| Loan type | How it works & who it's for |
|---|---|
| Conventional (conforming) | Backed by Fannie Mae/Freddie Mac; as little as 3-5% down. Best pricing for strong credit; PMI drops off at 20% equity. |
| Conventional 97 | 3%-down conventional for qualified buyers - a low-down alternative to FHA with cancellable PMI. |
| HomeReady / Home Possible | 3%-down conventional with reduced PMI and flexible income sources; income limits apply. Great for first-time & moderate-income buyers. |
| High-balance conforming | For higher-cost counties; conforming terms above the base limit but below jumbo. |
| Jumbo loan | For loan amounts above conforming limits. Competitive rates for strong borrowers; typically 10-20%+ down. |
Government-backed
FHA, VA & USDA loans
| Loan type | How it works & who it's for |
|---|---|
| FHA loan | 3.5% down with a 580+ score (10% down from 500). Flexible credit; ideal for first-time and credit-building buyers. |
| FHA 203(k) renovation | One FHA loan that funds the purchase plus renovation costs - buy and fix a home with a single mortgage. |
| VA loan | For veterans, active duty & eligible spouses: 0% down, no PMI, and competitive rates. One of the strongest programs available. |
| VA IRRRL (streamline) | Fast, low-doc refinance for existing VA loans to lower the rate or payment with minimal paperwork. |
| USDA loan | 0% down for eligible rural & many suburban areas, with income limits. Great for buyers outside major metros. |
Self-employed & unique borrowers
Non-QM home loans (bank statement, P&L-only & more)
Non-QM ("non-qualified mortgage") programs use common-sense, alternative documentation for borrowers whose tax returns don't tell the whole story — especially self-employed and 1099 earners. These are full owner-occupied home loans, just underwritten differently.
| Non-QM loan type | How it works & who it's for |
|---|---|
| Bank statement loan | Qualify on 12 or 24 months of personal or business bank-statement deposits instead of tax returns. For self-employed owners whose write-offs lower taxable income. |
| P&L-only loan | Qualify on a CPA- or tax-preparer-prepared profit & loss statement (often 12-24 months) - no tax returns or bank statements needed. Simplest doc for established self-employed borrowers. |
| 1099-only loan | Qualify using your 1099 income forms (often 1-2 years) instead of full returns. Built for contractors and gig/commission earners. |
| Asset depletion / asset qualifier | Qualify using liquid assets converted to a monthly income stream - no employment income required. For retirees and high-net-worth buyers. |
| WVOE-only loan | Qualify on a written verification of employment from your employer with minimal additional docs. |
| ITIN loan | Home financing for borrowers with an ITIN instead of an SSN - homeownership for non-citizen taxpayers. |
| Recent credit event / non-prime | For buyers after a recent bankruptcy, foreclosure, or short sale who don't yet fit agency guidelines. |
| Interest-only | Lower initial payment by paying interest only for a set period; for cash-flow-focused and higher-income buyers. |
| DSCR (investment note) | Qualifies a rental on the property's income, not yours. For investment property, not owner-occupied - ask us if you're buying a rental. |
Refinance & equity
Refinance and home equity options
| Loan type | How it works & who it's for |
|---|---|
| Rate-and-term refinance | Replace your loan to lower the rate, change the term, or drop PMI - no cash out. |
| Cash-out refinance | Refinance for more than you owe and take the difference in cash for renovations, debt payoff, or investing. |
| Streamline refinance (FHA / VA IRRRL) | Low-doc refinance of an existing FHA or VA loan to reduce your rate/payment quickly. |
| HELOC | A revolving line of credit against your equity - borrow, repay, and reborrow. Great for renovations or flexible needs. |
| Home equity loan (2nd mortgage) | A fixed lump sum against your equity with a fixed payment, on top of your first mortgage. |
Renovate
Renovation loans
| Loan type | How it works & who it's for |
|---|---|
| FHA 203(k) | Roll purchase + renovation into one FHA loan (limited and standard versions). Buy a fixer and finance the work. |
| Fannie Mae HomeStyle | Conventional renovation loan for purchase or refinance plus improvements, based on the after-renovation value. |
Build it
Ground-up construction & construction-to-perm loans
Building a home — or a custom primary residence — needs financing that funds the land, the vertical build in draws, and the permanent mortgage. We offer both single-close and two-close structures for owner-occupied construction.
| Loan type | How it works & who it's for |
|---|---|
| Ground-up construction (residential) | Finances your owner-occupied build from land and site work through completion, funded in progress draws as each stage passes inspection. Interest is typically paid only on funds drawn. |
| Construction-to-perm (one-time close) | A single loan that funds construction and then automatically converts to a permanent 15/30-yr mortgage when the home is finished - one application, one closing, one set of costs, no re-qualifying after the build. |
| Two-time close construction | Separate construction loan and permanent loan - more flexibility to shop the permanent financing, with a second closing at completion. |
| Owner-builder & custom home | Programs for buyers building a custom primary residence with a licensed builder; draw schedules and contingency built in. |
| Down payment | Typically 10–20% of total cost (land equity can count) |
| Draws | Progress draws with inspections; interest usually on drawn funds only |
| Conversion | Auto-converts to permanent loan (one-time close) - no second closing |
| Terms | Lock options for the permanent rate; 15/30-yr fixed or ARM exit |
Save thousands
How to reduce closing costs with seller concessions
A seller concession (also called an interested-party contribution) is money the seller credits toward your closing costs and prepaids at closing — property taxes, insurance, discount points, lender/title fees, and even a temporary rate buydown. In a balanced or buyer-favorable market it's one of the most powerful ways to buy with less cash out of pocket. You negotiate it into the purchase contract, and it can only pay costs (it can't be taken as cash or exceed your actual costs).
| Loan type | Max seller concession (2026) | Notes |
|---|---|---|
| Conventional (primary / 2nd home) | 3% / 6% / 9% | 3% with <10% down · 6% with 10–25% down · 9% with 25%+ down |
| FHA | Up to 6% | Regardless of down payment |
| USDA | Up to 6% | Cannot exceed actual closing costs |
| VA | Up to 4%* | Plus seller may pay reasonable closing costs & discount points separately |
| Investment property | 2% | Conventional cap for non-owner-occupied |
*VA 4% covers concessions like prepaids, a temporary buydown, or debt payoff; standard closing costs and points the seller pays are generally separate. The seller's credit is always the lesser of the limit or your actual costs.
More ways to cut cash to close
- Lender credit: Take a slightly higher rate in exchange for the lender paying part of your closing costs.
- Seller-funded temporary buydown (2-1): Seller pays to lower your rate for the first 1-2 years, reducing early payments.
- Down-payment assistance (DPA): Grants or second loans that cover down payment and/or closing costs.
- Gift funds: Family gifts can cover down payment and closing costs on most programs.
- Roll costs into the loan: On some refinances and higher-value purchases, finance certain costs into the balance.
- Shop title & services: You can choose certain third-party providers to lower fees.
Qualify
What you need to qualify
| Credit | 500+ (FHA) · 620+ (conventional) · non-QM varies; best pricing 720–740+ |
| Down payment | 0% (VA/USDA) · 3–3.5% (Conv 97/FHA) · 10–20%+ (jumbo/non-QM) |
| Income docs | W-2/tax returns, or bank statements / P&L / 1099 / assets for self-employed |
| Debt-to-income | Generally up to 43–50% with compensating factors |
| Reserves | Program-dependent; often 0–6 months of payments |
| Property | Primary or second home; SFR, condo, townhome, 2–4 unit |
The process
How to get a home loan, step by step
- 1. Pre-qualify — share basic info and get matched to programs and a payment range.
- 2. Get pre-approved — verify income and assets so your offer is strong.
- 3. Shop & offer — negotiate price and seller concessions into the contract.
- 4. Lock your rate — choose fixed or ARM and lock at the right time.
- 5. Underwrite & appraise — we clear conditions and confirm value.
- 6. Close — sign and get the keys, with concessions applied to your costs.
Answers
Home loan FAQ
What types of home loans are there?
Owner-occupied home loans fall into a few families: conventional/conforming (incl. 3%-down and jumbo), government (FHA, VA, USDA), non-QM for self-employed and unique borrowers (bank statement, P&L-only, 1099-only, asset-based, ITIN, WVOE), renovation loans (203k, HomeStyle), construction loans (ground-up and construction-to-perm), refinances (rate-and-term, cash-out, streamline), and home equity (HELOC, home equity loan). We match you to the best fit.
What is a bank statement loan?
A non-QM home loan that qualifies self-employed borrowers on 12 or 24 months of personal or business bank-statement deposits instead of tax returns. Great when write-offs make your tax returns understate your true income.
What is a P&L-only loan?
A non-QM loan that qualifies you using a CPA- or tax-preparer-prepared profit & loss statement (often 12-24 months) instead of tax returns or bank statements. Ideal for established self-employed borrowers who want the simplest documentation.
How can I reduce my closing costs?
Ask the seller for a concession (a credit toward your closing costs and prepaids), use a lender credit, roll costs into the rate, apply down-payment-assistance or gift funds, or have the seller fund a temporary rate buydown. Concession limits vary by loan type - see the section above.
How much can a seller contribute to closing costs?
Conventional primary/second homes: 3% of price with under 10% down, 6% with 10-25% down, 9% with 25%+ down. FHA: up to 6%. USDA: up to 6%. VA: up to 4% for concessions, plus the seller may pay reasonable closing costs and points separately. The seller's credit can never exceed your actual costs.
What is a construction-to-perm loan?
A single loan that funds your ground-up build and then converts to a permanent mortgage when the home is finished - one application, one closing, one set of costs. It avoids a second closing and re-qualification after construction.
Can I get a home loan if I'm self-employed?
Yes. Beyond conventional (which uses tax returns), we offer bank-statement, P&L-only, 1099-only, and asset-based programs designed specifically for self-employed and 1099 borrowers whose tax returns don't reflect their real cash flow.
How much down payment do I need?
As little as 0% (VA, USDA), 3% (Conventional 97, HomeReady), or 3.5% (FHA). Jumbo and non-QM typically want 10-20%+. Down-payment assistance and gift funds can cover part of it, and seller concessions can offset closing costs.
Keep exploring
Related programs & tools
© 2026 CambridgeHomeLoan.com · NMLS #1826020 · 4830 W Kennedy Blvd, Tampa, FL 33609 · (800) 826-5077 · Equal Housing Lender. Loan programs, rates, down payments, seller-concession limits, and terms are illustrative, subject to change without notice, and subject to borrower and property qualification and underwriting approval. Down-payment, credit, and concession figures reflect general program guidelines as of 2026 and may vary by investor, occupancy, and property. Seller concessions can only pay allowable closing costs and prepaids and can never exceed your actual costs. This page is educational and does not constitute financial, legal, or tax advice; consult your loan officer for terms specific to your situation.
A Comprehensive Guide to Different Types of Home Loans
Choosing the right home loan is a crucial step in the homebuying process. With so many options available, it can be overwhelming to determine which type of mortgage is best suited for your needs. In this comprehensive guide, we will explore the various types of home loans and provide you with the information you need to make an informed decision.
Table of Contents
1. Conventional Loans #conventional-loans
2. Fixed-Rate Mortgages #fixed-rate-mortgages
3. Adjustable-Rate Mortgages #adjustable-rate-mortgages
4. High-Balance Loans #high-balance-loans
5. Jumbo Mortgages #jumbo-mortgages
6. FHA Loans #fha-loans
7. VA Loans #va-loans
8. USDA Loans #usda-loans
9. Reverse Mortgages #reverse-mortgages
10. Construction Loans #construction-loans
1. Conventional Home Loans
One of the most common types of home loans is the conventional loan. Unlike government-backed mortgages, conventional loans are not insured or guaranteed by the federal government. These loans are typically offered by private lenders such as banks, credit unions, and mortgage companies.
To qualify for a conventional loan, borrowers usually need a minimum credit score of 620. Lenders also require borrowers to provide detailed documentation of their income, employment history, credit history, and assets. Additionally, conventional loans often require a down payment of at least 3% of the home’s purchase price.
Conventional loans can be further categorized into conforming and non-conforming loans. Conforming loans adhere to the guidelines set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that purchase mortgages from lenders. Non-conforming loans, on the other hand, do not meet these guidelines and are often referred to as jumbo loans.
2. Fixed-Rate Mortgages
Fixed-rate mortgages are a popular choice among homebuyers who prefer stability and predictability. With a fixed-rate mortgage, the interest rate remains the same throughout the entire loan term. This means that your monthly mortgage payment will stay constant, making it easier to budget for your housing costs.
Typically, fixed-rate mortgages come in 15-year and 30-year terms. The 15-year mortgage offers a shorter repayment period with higher monthly payments but allows you to pay off your loan faster and save on interest. The 30-year mortgage, on the other hand, offers lower monthly payments spread out over a longer period of time.
Fixed-rate mortgages are ideal for borrowers who plan to stay in their homes for an extended period of time and prefer the stability of a consistent monthly payment.
All About Home Loans Continued..
3. Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) are a type of mortgage loan with an interest rate that can fluctuate over time. Unlike fixed-rate mortgages, ARMs have an initial fixed-rate period, typically ranging from 5 to 10 years, after which the interest rate adjusts periodically based on market conditions.
One popular type of ARM is the 5/1 ARM, where the interest rate remains fixed for the first five years and adjusts annually thereafter. The rate adjustment is usually based on an index, such as the U.S. Treasury rate or the London Interbank Offered Rate (LIBOR), plus a margin determined by the lender.
ARMs often have lower initial interest rates compared to fixed-rate mortgages, making them attractive to borrowers who plan to sell or refinance their homes before the fixed-rate period ends. However, it’s important to consider that the interest rate can rise significantly after the initial fixed-rate period, potentially leading to higher monthly payments.
4. High-Balance Loans
High-balance loans are a type of conventional loan that exceeds the standard conforming loan limit set by Fannie Mae and Freddie Mac. These loans are still considered conforming because they adhere to the loan limit set by the Federal Housing Finance Agency (FHFA) for high-cost areas.
The high-balance loan limit for single-family homes in 2023 is $1,089,300, which is 150% of the standard loan limit. High-balance loans allow borrowers to borrow above the standard loan limits in areas where home prices are higher than average.
Borrowers who are looking to purchase homes in high-cost areas but still want the benefits of a conventional loan may find high-balance loans to be a suitable option.
5. Jumbo Mortgages
Jumbo mortgages are similar to high-balance loans in that they exceed the conforming loan limits set by Fannie Mae and Freddie Mac. However, jumbo mortgages do not conform to the guidelines established by these government-sponsored enterprises.
Jumbo loans are typically used to finance luxury homes or properties in high-cost areas. Due to the larger loan amount, jumbo mortgages often require a higher credit score and a larger down payment, usually at least 20% of the home’s purchase price.
In recent years, jumbo mortgage rates have been relatively comparable to conforming conventional loans. Borrowers who need a mortgage that exceeds the conforming loan limits may consider a jumbo mortgage for their high-value property.
6. FHA Home Loans
FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA). These loans are designed to help borrowers with lower credit scores and limited down payment funds qualify for homeownership.
To qualify for an FHA loan, borrowers typically need a credit score of at least 580 and a minimum down payment of 3.5% of the home’s purchase price. Borrowers with credit scores between 500 and 579 may still be eligible but will be required to make a larger down payment of at least 10%.
FHA loans have mandatory mortgage insurance premiums (MIP) that protect the lender in case the borrower defaults on the loan. If the down payment is less than 10%, the MIP is required for the entire loan term. However, borrowers who put down at least 10% can request to have the MIP removed after building at least 20% equity in the home.
7. VA Loans
VA loans are mortgage loans available to eligible military servicemembers, veterans, and their spouses. These loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and offer several benefits, including no down payment requirement.
In most cases, VA loans do not require a down payment, making homeownership more accessible to qualified military borrowers. While the VA does not have a minimum credit score requirement, VA lenders typically expect to see a credit score of at least 620.
VA loans are a great option for qualified military borrowers who want to purchase a home without the burden of a down payment.
VA HOME LOAN
NO MONEY DOWN HOME LOAN
8. USDA Loans
USDA loans are mortgage loans offered by the United States Department of Agriculture (USDA) to help moderate- to low-income borrowers purchase homes in rural and suburban areas. These loans do not require a down payment and offer flexible credit guidelines.
To qualify for a USDA loan, borrowers must meet income requirements and purchase a home in an eligible USDA-designated rural or suburban area. USDA loans do not have a minimum credit score requirement, but lenders typically expect to see a credit score of at least 640.
USDA loans are an excellent option for borrowers with limited savings and who are looking to purchase a home in a rural or suburban area.
9. Reverse Mortgages
Reverse mortgages are a specialized type of home loan available to homeowners aged 62 and older. These loans allow homeowners to convert a portion of their home equity into cash, either through a lump sum payment, monthly installments, or a line of credit.
Unlike traditional mortgages, reverse mortgages do not require monthly mortgage payments. Instead, the loan is repaid when the homeowner sells the home, moves out of the property, or passes away. The loan is typically repaid through the sale of the home, with any remaining equity going to the homeowner or their heirs.
Reverse mortgages can be a useful financial tool for retirees who want to tap into their home equity to supplement their income in retirement.
All About Home Loans..
10. Construction Loans
Construction loans are specialized loans that provide financing for the construction of a new home or major renovations to an existing home. These loans typically have a shorter term and higher interest rates compared to traditional mortgages.
During the construction phase, borrowers make interest-only payments on the loan. Once the construction is complete, the loan can be converted into a traditional mortgage or paid off with the proceeds from the sale of the property.
Construction loans are suitable for borrowers who want to build their dream home or undertake significant renovations but may not have the funds to finance the project upfront.
Conclusion
Choosing the right home loan is a crucial step in the homebuying process. By understanding the different types of home loans available, you can make an informed decision that aligns with your financial goals and homeownership needs. Whether you opt for a conventional loan, a government-backed loan, or a specialized mortgage, it’s important to carefully evaluate your options and work with a trusted lender to find the best loan for your unique circumstances.
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