Most people end up choosing between two or three options. Here's a plain-English look at each one, who it's for, and what to watch out for.
The standard loan for most buyers.
Good fit for: Buyers with steady income and good credit.
Not backed by a government agency. Down payments can be as low as 3 to 5 percent, but if you put down less than 20 percent you will pay private mortgage insurance (PMI). PMI can be removed later once you have enough equity.
Related reading: Conventional or FHA? What First-Time Buyers Actually Need to Know
More flexible on credit and down payment.
Good fit for: First-time buyers, or anyone rebuilding credit.
Insured by the Federal Housing Administration. Credit requirements are more forgiving and the minimum down payment is low. The trade-off is mortgage insurance that often stays for the life of the loan, and condos must be on an FHA-approved list.
Related reading: Conventional or FHA? What First-Time Buyers Actually Need to Know
A benefit for veterans and service members.
Good fit for: Veterans, active-duty members, and eligible surviving spouses.
Backed by the Department of Veterans Affairs. Usually no down payment and no monthly mortgage insurance. There is a one-time funding fee, which some veterans are exempt from. You will need a Certificate of Eligibility, and I can help you get it.
Related reading: Zero Down Isn't a Myth: VA and USDA Loans Explained · VA Home Loans in the DMV 2026: Residual Income, Occupancy, and Maryland vs Virginia Taxes
No down payment in eligible rural areas.
Good fit for: Moderate-income buyers purchasing outside the city core.
Backed by the Department of Agriculture. Eligibility depends on the property address and your household income, not on how rural the area feels. Some areas on the edges of the DC region qualify. I can check an address for you.
Related reading: Zero Down Isn't a Myth: VA and USDA Loans Explained
For loans above the standard limit.
Good fit for: Higher-priced homes, common in Montgomery County and Northern Virginia.
When the loan amount is above the conforming limit set each year, it becomes a jumbo loan. Expect stricter requirements: a larger down payment, more savings left over after closing, and sometimes a second appraisal.
Related reading: Buying Bigger or Buying to Rent: Jumbo and Multi-Family Financing
Buy and fix up a home with one loan.
Good fit for: Buyers looking at homes that need work.
Rolls the purchase price and the cost of repairs into a single mortgage. You will need a contractor, a written scope of work, and a bit more patience, since repair money is paid out in stages as the work is done.
Related reading: Why Waiting for the "Right" Time Might Cost You More Than Just Buying Now
Qualify based on the rental income.
Good fit for: Investors buying or refinancing rental properties.
Instead of focusing on your personal income, the lender looks at whether the expected rent covers the mortgage payment. Down payment requirements and rates are typically higher than for a home you live in.
Related reading: When Your Income Doesn't Fit the W-2 Box · Buying Bigger or Buying to Rent: Jumbo and Multi-Family Financing
A refinance replaces your current mortgage with a new one. It only makes sense if the savings outweigh the closing costs before you move or sell.
Get a lower rate, or switch to a shorter loan to pay it off faster. Watch out for restarting a 30-year clock just to lower the monthly payment, since that can cost more overall.
Borrow against your home's equity for renovations or to pay off higher-interest debt. If you like your current rate, a home equity loan or line of credit may be a better choice.
If you already have an FHA or VA loan, there are simplified refinance options with less paperwork. They have their own waiting periods and rules.
Related reading: Refinancing Your Mortgage: When Is It Worth It? · HELOC for DMV homeowners: how it works and when it fits
Thinking of moving within the next couple of years? Refinancing often won't pay off in time. Check your break-even point with the refinance calculator.
More reading: Adjustable-rate mortgages in the DMV · Condo mortgage financing in the DMV · Assumable mortgages in the DMV
There is no single best loan. It depends on your credit, how much you have for a down payment, the type of property, and how long you plan to stay. I will walk you through the two or three that fit you and explain the trade-offs.
Your rate depends on your credit, down payment, loan type, property, and the market that day. A rate posted on a website rarely matches what you would actually get. Call with a few details and I will give you real numbers.
Yes. FHA, VA, USDA, and some conventional loans have low down payment options, and Maryland, Virginia, and DC each offer down payment assistance programs with their own income limits and requirements. Let’s confirm you qualify before you make an offer that depends on one.
No. Many buyers put down much less. Putting down less than 20 percent usually means paying mortgage insurance, which raises your monthly payment, so we will compare a few down payment amounts to see what makes sense for you.
Tell me a little about your situation and I'll narrow it down to the options that make sense, usually in one call.
