Loan Options | Mercantini Home Loans

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HOME MORTGAGE OPTIONS

When it comes to home mortgages, the amount of options can feel overwhelming. Whether you’re a first-time homebuyer, purchasing a new home, or want to refinance your existing mortgage, it’s important to understand the different types of home mortgages available and which best fit your goals.

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Generally, there are four primary types of home mortgages:

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Government Backed Loans: Loans that are insured by the federal government, have lower credit score and down payment requirements, and have potentially higher interest rates.

Conventional Loans: Loans that are not backed by the federal government, typically require higher credit score and down payments, but may have lower interest rates.

Non-Qualified Loans: Loan options that do not meet specific criteria set by regulatory bodies, making them suitable for individuals with unique financial situations.

Non-Conforming Loans: Loans that exceed the standard loan limits and do not conform to government-sponsored loan guidelines.

Whatever loan type you choose, many will give you a choice between a fixed or adjustable interest rate.

Fixed Interest Rates: When the interest rate percentage remains the same throughout the life of the loan, offering predictability and stability.

Adjustable Interest Rates: When the interest rate percentage may start lower than a fixed rate but increases over time, depending on various factors.

You can read more about our home mortgage options below, or call our team of home mortgage professionals at any time!

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Government Backed Loans

These loans are insured by the federal government, have lower credit score and down payment requirements, but have potentially higher interest rates.

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FHA Loans

Backed by the Federal Housing Administration
Popular choice for first-time homebuyers
Require lower minimum credit scores and down payments
More accessible for many borrowers

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USDA Loans

Backed by the U.S. Department of Agriculture
Designed for low-to-moderate income borrowers in Rural Areas
Flexible credit requirements and competitive rates
Zero or low down payment options

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VA Loans

Backed by the Department of Veterans Affairs
Offered to eligible veterans and active-duty members
Lower interest rates and fewer fees
Require no down payment

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Conventional Home Loans

Conventional loans are mortgages not insured by any government agency. Backed by private lenders, they typically have stricter credit and income criteria.

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Manufactured Home Loans

Designed for the purchase or refinance of manufactured homes
Often have higher interest rates due to higher risk
Shorter loan terms create higher down payments
Great option for borrowers seeking affordable housing

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Renovation Loans

Designed to fund renovations, remodels, or energy efficiency
Popular with homeowners without cash on hand
Several types available with unique terms
Helps homeowners improve quality of life or property value

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Non-Qualified Loans

A Non-Qualified Loan is a type of mortgage that doesn't meet standards set by regulatory guidelines. They offer options to borrowers with unique financial situations.

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Interest Only Loans

Allows borrowers to only pay their loan's interest for a set time
Principal can be repaid in a lump sum or in payments
Allows real estate investors to allocate resources elsewhere

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Non-Conforming Loans

Mortgage options designed for borrowers whose financial circumstances fall outside conventional lending norms. These involve higher interest rates and stricter qualifications.

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Jumbo Loans

Designed to finance properties that are too expensive for conforming loans
Maximum conforming loan in 2024 is $766,550 ($1,149,825 in high-cost areas)

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Fixed Rate Mortgages

The most popular loan type. Your interest rate stays exactly the same for the life of the loan (usually 15 or 30 years), offering perfect payment stability.