Mortgage Loan Programs: Which One Fits You
The right loan depends on your income, savings, credit, timeline and the house, not just the rate.
I’m an independent broker with more than 30 lenders, so I can match you to the program and the lender whose rules fit your file instead of one bank’s menu.
Here are the main programs I use and who each one is for. I also broker construction and renovation loans; they take more steps than a purchase, so call me and we’ll talk through whether one fits before you commit.
“RL was very knowledgeable and extremely communicative throughout the entirety of the loan process. He was able to keep the ball rolling and allowed us to get to closing more quickly than we had anticipated. We were also extremely satisfied with the mortgage rate we were able to qualify for. I highly recommend.”
Cooper G.
Franklin, TN
The Main Loan Programs
Before I recommend a program, I look at your income, savings, credit, timeline and how strong your offer needs to be.
Conventional Loans
For buyers with solid credit and documented income. The most common loan, and a good fit for:
Primary residences and second homes
Buyers with W-2 income or clean self-employment history
Buyers who want mortgage insurance they can remove later
Worth knowing:
Mortgage insurance can come off once you have enough equity.
Jumbo Loans
For loans above the county’s conforming limit. Often used by:
Move-up buyers
High-income professionals
Buyers with significant assets or complex compensation
Worth knowing:
Each lender writes its own jumbo rules, so where you apply matters most here.
FHA Loans
For buyers who need more room on credit or a smaller down payment. A good fit for:
First-time buyers
Buyers rebuilding credit
Buyers prioritizing lower upfront cash requirements
Worth knowing:
On most FHA loans with a small down payment, the monthly mortgage insurance stays for the life of the loan, so I compare it with conventional.
VA Loans
For eligible veterans, service members and surviving spouses. A good fit for:
Veterans and military families
Buyers seeking zero down payment options
Buyers who want to keep cash in the bank
Worth knowing:
No monthly mortgage insurance, and veterans who receive VA disability compensation don’t pay the funding fee.
Non-QM Loans
For buyers whose tax returns don’t show what they earn. Common for:
Self-employed borrowers
Business owners
1099 earners and buyers qualifying on assets
Worth knowing:
It usually costs more than conventional, so it should solve a real documentation problem.
Investor / DSCR Loans
For investors buying or refinancing rentals.
Qualification centers on eligible property cash flow
Personal-income documentation may not be used to qualify, depending on the program
Works for one rental or a growing portfolio
Worth knowing:
The rent the appraiser supports is what counts, so I check it before you make an offer.
The Programs Side by Side
Each agency’s published minimums, in one place. Lenders can set stricter rules than the agencies, so the right program depends on your whole picture, and I price it across more than 30 lenders.
| Program | Minimum down payment | Mortgage insurance | 2026 loan limit, Williamson County | Often fits |
|---|---|---|---|---|
| Conventional | 3% for first-time buyers or buyers who qualify for HomeReady or Home Possible; 5% otherwise | Required with less than 20% down. You can ask to remove it once the balance reaches 80% of the original value, and it ends on its own at 78% | $1,029,250 | Steady income and solid credit; the most common loan |
| FHA | 3.5% with a credit score of 580 or higher; 10% from 500 to 579 | 1.75% upfront plus 0.50% to 0.75% a year on a 30-year loan; for the life of the loan with less than 10% down, 11 years with 10% or more | $1,029,250 | Credit that needs more room, or a smaller down payment |
| VA | None, as long as the price isn’t above the appraised value | No monthly mortgage insurance. A one-time funding fee of 1.25% to 3.3% unless you’re exempt | No limit with full entitlement; $1,029,250 if part of your entitlement is in use | Veterans, service members and eligible surviving spouses |
| Jumbo | Set by each lender | Usually none | Above $1,029,250 | Homes above the conforming limit |
| Non-QM | Set by each lender | Usually none | Set by each lender | Self-employed income shown on bank statements, 1099s or assets |
| DSCR | Set by each lender | Usually none | Set by each lender | Investors qualifying on the property’s rent |
For a one-unit home in Williamson County and the 13 other Middle Tennessee counties on the same limits. Figures from Fannie Mae, HUD, the VA, the FHFA and the CFPB, reviewed October 2026. The 2027 limits come out in late November, and this table gets updated then.
Related reading: Buying a Home While Self-Employed · What Really Affects Mortgage Rates (and What Doesn’t) · Why the Lowest Mortgage Rate Isn’t Always the Best Loan
Plans for Your Situation
Some moves need a plan more than a single loan program. Each of these pages shows how I’d structure it.
Refinance and Cash-Out
Find out whether a refinance pays off and which kind fits your plans, from a lower rate to cash out of your equity.
First-Time Home Buyers
Loan options, down payment assistance and a clear path from pre-approval to keys.
Relocating to Franklin
Get pre-approved before you move, and know Tennessee’s closing costs and Williamson County’s loan limit.
Buy Before You Sell
Bridge loans, home equity lines and other ways to buy your next home before this one sells.
Not Sure Which Loan Fits?
Many buyers qualify for more than one. I compare them on your numbers, looking at:
- How strong your offer needs to be
- Cash at closing versus the monthly cost
- How long you plan to keep the home
- Your timeline to close
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