5 Types of Housing Loans

Buying a home — whether it’s your first or your fifth! — is an exciting time. But finding a housing loan that fits your needs can feel overwhelming. However, working with mortgage experts at K2 Lending can make the process go more smoothly! Along with talking to an expert, it also helps to know some general mortgage terms so that you can have a better idea of what loan works best for you. Continue reading to learn more, and if you’d like to schedule an appointment with our mortgage company, contact us today.

Different Types of Housing Loans

Conventional Mortgage

Conventional mortgages are called conventional for a reason! They’re the most common type of mortgage, and they can be used for a primary home, second home, or an investment home. The borrowing costs tend to be lower than other types of mortgages, even if the interest rates are slightly higher, and you can pay as little as three percent down on conventional mortgages backed by Fannie Mae or Freddie Mac.

To qualify for a conventional mortgage, a credit score of 620 or higher is often required, and you’ll need to have a max debt-to-income ratio of 45 to 50 percent. Conventional housing loans are a good choice for borrowers with strong credit, stable income, and savings for a down payment of at least three percent.

FHA Loan

An FHA loan is backed by the government, and these loans are designed to help make it possible for borrowers who don’t have a large downpayment to buy a home. You need a minimum credit score of 580 to qualify. FHA loans require two mortgage insurance premiums, one which is paid upfront, and the other which is paid annually over the life of the loan. 


USDA loans help borrowers in rural areas buy homes, and they are also backed by the government. They’re designed to help moderate- to low-income borrowers become homeowners, but you need to be in a USDA-eligible area and meet certain income limits to qualify. If you’d like to learn more, contact our mortgage company. 

VA Loans

VA loans provide low-interest housing loans for members of the U.S. military and their families. They don’t require a down payment, and closing costs are often capped or may even be paid by the seller. 

Jumbo Mortgage

A jumbo mortgage is used when the home price exceeds federal loan limits for a conforming conventional loan. Jumbo loans are more common in higher-cost areas, and have stricter requirements, but you can get the unique benefit of loan amounts up to $2 million. When it comes to buying your dream home, a conventional mortgage might not cut it, but a jumbo loan can.

K2 Lending – Housing Loans

K2 Lending allows you to shop 30 banks at once, giving you premier housing loans at your fingertips and helping you find mortgage rates that fit your needs. We pair you with a personal mortgage consultant who will work tirelessly to find a housing loan that’s a good fit for you long term, whether that’s a conventional mortgage, VA loan, or jumbo loan! Our company is based in Denver, CO and we also serve Wyoming, Nevada, New Mexico, Texas, California, Oregon, Idaho, Michigan, Florida, Georgia, South Carolina, Virginia, and Montana. 

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