Loan Options
Mortgage options are not one-size-fits-all. The best fit depends on your goals, timing, property, finances, and what you are trying to do next.
Here’s a quick look at the usual suspects. Then we can talk about what actually makes sense for you.
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The traditional Conventional fixed-rate mortgage has a constant interest rate and monthly payments that never change.
It's a non-government-insured loan, meaning it's not backed by agencies like FHA or VA, but instead by private lenders or government-sponsored entities like Fannie Mae and Freddie Mac. It is often the most common type of mortgage in the U.S.
Conventional mortgage loans can be used for primary residences, second homes, or investment properties.
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An ARM is an Adjustable Rate Mortgage. Unlike fixed-rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on an ARM will change periodically. The initial interest rate of an ARM is typically lower then that of a fixed-rate mortgage.
Consequently, an ARM may be a good option to consider if you plan to own your home for only a few years, you expect an increase in future earnings, or the prevailing interest rate for a fixed mortgage is too high and will potentially decrease.
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An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA). Essentially, the federal government insures loans for FHA-approved lenders (like me!) in order to reduce their risk of loss if a borrower defaults on their mortgage payments. This often allows lenders to offer lower interest rates on FHA loans to those with compromised credit history or who fall outside the parameters of Conventional loan guidelines.
The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s to help stimulate the housing market by making loans accessible and affordable, especially for first time homebuyers..
FHA loans can be used to purchase primary residences, but not second or investment homes.
*Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
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A VA loan is a mortgage in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). It’s an incredible and valuable benefit awarded to those who have served our country, and who deserve the best mortgage option available when buying a home.
VA loans can be used to purchase a primary residence. They require $0 down payment*, lower interest rates, and no additional monthly mortgage insurance costs, making them the most affordable mortgage option on the market! -
A jumbo loan is a mortgage that exceeds the conforming loan limits as set by the Federal Housing Finance Agency (FHFA). As of 2025, the limit is $806,500 for most of the US, apart from “high-cost areas” where the limits are much higher. Rates tend to be a bit higher on jumbo loans because they generally involve a higher risk.
Because they involve non-conforming loan amounts, these mortgages fall outside of the parameters set by Fannie Mae and Freddie Mac (non-government sponsored entities) and are often funded by private investors.
I’m here to make the jumbo home loan process easier, with tools and knowledge that will help guide you along the way!
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The United States Department of Agriculture (USDA) gives borrowers a more affordable opportunity to own a home in designated rural areas. Surprisingly, some of these “rural areas” are often within city limits! There are several benefits of a USDA loan, including lower monthly payment options and $0 down payment required.
*USDA Guaranteed Rural Housing loans subject to program stipulations and applicable state income and property limits. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.