Mortgage programs vary depending on your financial situation, credit profile, and the type of property you're purchasing. The programs below represent the most common options available in today's lending market.
Expand each program below to learn more — or reach out if you'd like help understanding which one fits your situation.
FHA loans are backed by the Federal Housing Administration and are one of the most popular options for first-time buyers. Because the government insures the loan, lenders can offer more flexible qualification requirements than conventional mortgages.
- Minimum down payment: 3.5% (with 580+ credit score)
- Credit flexibility: Scores as low as 500–580 may qualify depending on down payment
- DTI ratio: Up to 43–57% depending on compensating factors
- Property: Primary residence only; must meet HUD minimum property standards
- Mortgage insurance: Required for the life of the loan if down payment is less than 10%
- Down payment gifts: 100% of down payment can come from a gift
Best for
First-time buyers with lower credit scores or limited down payment savings. Popular in Southern California where saving a large down payment can take years.
Advantages
- Low 3.5% down payment
- Flexible credit requirements
- Higher DTI ratios allowed
- Down payment can be gifted
Considerations
- Mortgage insurance for life of loan (<10% down)
- Primary residence only
- Property must meet HUD standards
Conventional loans follow guidelines set by Fannie Mae or Freddie Mac and are the most common mortgage type in the U.S. They offer competitive rates and flexible property options for buyers with solid credit.
- Minimum down payment: As low as 3% via HomeReady or Home Possible programs
- Credit score: Typically 620 or higher; better rates with 740+
- PMI: Required below 20% down — but can be removed once 20% equity is reached
- Property types: Primary, second homes, and investment properties
- Loan limits: Subject to conforming limits (higher in high-cost California counties)
Best for
Buyers with stronger credit profiles who want flexibility in property type and the ability to remove mortgage insurance over time.
Advantages
- PMI removable at 20% equity
- Available for investment & second homes
- No upfront MIP
- 3% down via HomeReady/Home Possible
Considerations
- Stricter credit requirements than FHA
- Higher score needed for best rates
- Income limits on 3% down programs
VA loans are a mortgage benefit available to eligible veterans, active-duty service members, and surviving spouses — backed by the U.S. Department of Veterans Affairs. They offer some of the most favorable terms in lending.
- Down payment: None required — 100% financing available
- Mortgage insurance: No PMI required
- Interest rates: Often at or below conventional loan rates
- Credit: No official VA minimum; lenders typically require 580–620+
- Funding fee: One-time fee (waived for veterans with service-connected disability)
- Property: Primary residence only; must meet VA minimum property requirements
Best for
Eligible veterans and active-duty service members — especially in high-cost markets like Southern California where zero down payment can make homeownership accessible years earlier.
Advantages
- 0% down payment
- No PMI or monthly mortgage insurance
- Competitive interest rates
- Loan is assumable
Considerations
- VA Funding Fee required (unless exempt)
- Primary residence only
- Property must meet VA MPRs
A jumbo loan is a mortgage that exceeds conforming loan limits set by the FHFA. Because they can't be purchased by Fannie Mae or Freddie Mac, they require a stronger financial profile. In Southern California, jumbo loans are common — many markets routinely see prices above conforming limits.
- Credit score: Typically 700+ (some programs require 720+)
- Down payment: Typically 10–20% or more depending on loan amount
- DTI ratio: Generally 43–45% or lower
- Reserves: Often 6–12 months of mortgage payments required after closing
- Property types: Primary, second homes, and investment properties available
Best for
Buyers purchasing higher-value properties in markets like Los Angeles, Orange County, and the South Bay where homes regularly exceed conforming loan limits.
Advantages
- Finance higher-priced properties
- Competitive rates for qualified borrowers
- Available for multiple property types
Considerations
- Stricter credit & income requirements
- Higher down payment required
- Significant cash reserves required
A bank statement loan allows self-employed borrowers to qualify using 12–24 months of bank deposits rather than tax returns. Designed for business owners whose tax write-offs reduce reported income below what's needed to qualify conventionally.
- Documentation: 12 or 24 months of personal or business bank statements
- Income calculation: Based on average monthly deposits (expense ratio applied to business accounts)
- Credit score: Typically 620–680 minimum
- Down payment: Typically 10–20%
- Self-employment: Must be documented for at least 2 years
- Property types: Primary, second homes, and investment properties
Best for
Business owners, freelancers, and independent contractors with consistent deposit history whose tax returns don't reflect their actual cash flow.
Advantages
- No tax returns required
- Qualifies on actual cash flow
- Multiple property types eligible
Considerations
- Higher rates than conventional
- Larger down payment typically required
- Must be self-employed 2+ years
A P&L only loan uses a CPA-prepared Profit and Loss statement as the primary income documentation in place of tax returns. This can reflect a more accurate picture of current business income — particularly useful when income has grown recently.
- Documentation: 12 or 24-month P&L prepared by a licensed CPA or accountant
- Income: Based on net income shown on the P&L statement
- Credit score: Typically 660+ depending on program and LTV
- Down payment: Typically 10–20%+
- Self-employment: Must be documented for at least 2 years
Best for
Business owners whose taxable income is significantly reduced by deductions, or whose income has grown recently and tax returns don't yet reflect current earnings.
Advantages
- No tax returns required
- Reflects current business income
- Useful when income has recently grown
Considerations
- CPA preparation required
- Higher rates than conventional
- Fewer lenders offer this program
No tax return loans are alternative documentation mortgages for borrowers whose financial situation isn't easily captured through traditional tax returns. Multiple documentation methods may be used in place of returns.
- Bank statements: 12–24 months of deposits used to calculate income
- Profit & Loss statement: CPA-prepared P&L covering 12–24 months
- Asset depletion: Qualifying income calculated from liquid assets
- 1099 income: 12–24 months of 1099s from independent contractor work
- DSCR: For investment properties — rental income qualifies the loan
- Credit score: Typically 620–700+ depending on program
- Down payment: Typically 10–30%
Best for
Self-employed borrowers, high-net-worth individuals, and investors with complex income structures who cannot or prefer not to document income through tax returns.
DSCR (Debt Service Coverage Ratio) loans qualify based on the rental income generated by the investment property — not the borrower's personal income. No W-2s, tax returns, or employment verification required.
- Qualification: Based on property cash flow, not personal income
- DSCR formula: Monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, HOA)
- Typical minimum DSCR: 1.0 to 1.25 (some lenders accept below 1.0 with higher down payment)
- Credit score: Typically 660–700 minimum
- Down payment: Typically 20–25%
- Property types: Single-family, 2–4 units, condos — investment only
- Short-term rentals: May be eligible under certain programs
Best for
Real estate investors building or expanding a rental portfolio — especially self-employed investors who show lower taxable income due to depreciation and deductions.
Advantages
- No income verification required
- Based on property cash flow
- Scalable across multiple properties
- Can be held in an LLC
Considerations
- Investment property only
- Higher rates than owner-occupied loans
- 20–25%+ down payment required