Seller's Resources

Different types of loan

---

🏠 1. Conventional Loans

 

• What it is: Loans not insured or guaranteed by the federal government.
   
• Down payment: Typically 3%–20%.
   
• Credit score: Usually 620 or higher.
   
• Best for: Borrowers with good credit, stable income, and the ability to make a down payment.
   
• Notes: If you put less than 20% down, you’ll need Private Mortgage Insurance (PMI) until your loan-to-value ratio drops below 80%.

🧾 2. FHA Loans (Federal Housing Administration)

 

• What it is: Government-insured loan with easier qualifications.
   
• Down payment: As low as 3.5%.
   
• Credit score: 580+ (can go lower with higher down payment).
   
• Best for: First-time buyers or those with lower credit scores.
   
• Notes: Requires mortgage insurance premiums (MIP) for the life of the loan unless refinanced into a conventional loan.

🎖️ 3. VA Loans (Department of Veterans Affairs)

 

• What it is: Government-backed loan for veterans, active-duty service members, and eligible spouses.
   
• Down payment: 0% (no down payment required).
   
• Credit score: Typically 620+, but flexible.
   
• Best for: Military members or veterans.
   
• Notes: No PMI required, but a VA funding fee usually applies (can be rolled into the loan).

🌾 4. USDA Loans (U.S. Department of Agriculture)

 

• What it is: Government-backed loan for rural and some suburban homebuyers with low to moderate income.
   
• Down payment: 0%.
   
• Credit score: Usually 640+.
   
• Best for: Buyers in eligible rural areas seeking 100% financing.
   
• Notes: Has income and property location restrictions; includes a small annual fee similar to PMI.

💰 5. Jumbo Loans

 

• What it is: Loans exceeding the conforming loan limit (in most of Nevada, that’s around $766,550 for 2025).
   
• Down payment: 10%–20% or more.
   
• Credit score: 700+ typically required.
   
• Best for: High-income buyers purchasing expensive homes.
   
• Notes: Higher interest rates and stricter qualification standards.

🏗️ 6. Construction-to-Permanent Loans

 

• What it is: Covers the cost of building a new home, then converts to a permanent mortgage after construction.
   
• Down payment: Often 10%–20%.
   
• Best for: Buyers building a custom home.
   
• Notes: Requires good credit and detailed construction plans.