Whether you’re buying a home or refinancing, these are the most common mortgage options we help clients navigate.
Conventional loans are one of the most common mortgage options and are available for both purchases and refinances. They typically require stronger credit profiles than government-backed loans but offer flexible terms and competitive pricing. Loan-to-value ratios often range up to 95% for qualified buyers, with private mortgage insurance generally required when putting less than 20% down. Debt-to-income ratios are commonly capped around the low-to-mid 40% range, though stronger credit or reserves may allow flexibility. Conventional loans can be used for primary residences, second homes, and investment properties, making them a versatile option for many borrowers.
FHA loans are insured by the Federal Housing Administration and are designed to expand access to homeownership, particularly for buyers with limited down payment funds or more flexible credit histories. These loans are available for purchases and refinances and often allow higher loan-to-value ratios than conventional loans, sometimes as high as 96.5% on purchases. FHA guidelines may permit higher debt-to-income ratios, depending on compensating factors. FHA loans require mortgage insurance, which is structured differently than conventional PMI and may remain for the life of the loan unless refinanced. They are commonly used for primary residences and certain approved property types.
VA loans are available to eligible veterans, active-duty service members, and certain surviving spouses. Backed by the Department of Veterans Affairs, these loans offer unique benefits such as zero down payment options and no monthly mortgage insurance requirement. VA loans can be used for purchases and refinances and often allow higher loan-to-value ratios and more flexible debt-to-income guidelines than conventional financing. While VA loans do include a funding fee in many cases, they are frequently one of the most cost-effective loan options for qualified borrowers purchasing or refinancing a primary residence.
Jumbo loans are designed for loan amounts that exceed conforming loan limits. They are available for both purchase and refinance transactions and are commonly used for higher-value properties. Because jumbo loans are not backed by government agencies, qualification standards are typically more conservative. Borrowers may need higher credit scores, lower debt-to-income ratios, and larger down payments compared to conforming loans. Loan-to-value limits vary by lender and scenario, and reserve requirements are often part of the approval process. Jumbo loans are commonly used for primary residences, second homes, and certain investment properties.
A purchase loan is used to finance the acquisition of a property. During a purchase transaction, escrow plays a central role by holding earnest money, coordinating documents, and ensuring all conditions are met before ownership transfers. Prequalification or preapproval helps determine loan eligibility early and strengthens purchase offers. Loan-to-value ratios are based on the purchase price or appraised value, whichever is lower. Debt-to-income ratios are evaluated to confirm the borrower’s ability to manage monthly payments alongside other obligations. Closing costs and down payment funds are typically brought into escrow prior to closing.
A refinance loan replaces an existing mortgage with a new one, often to adjust the interest rate, loan term, or monthly payment structure. Unlike purchase transactions, refinancing does not involve a change in property ownership, and escrow functions differently. In many refinances, escrow accounts for taxes and insurance may be recalculated or rolled into the new loan, depending on the borrower’s preference and loan type. Loan-to-value ratios are based on the current appraised value of the property, and debt-to-income ratios are reassessed using updated income and credit information. Refinancing can be used to reduce monthly payments, change loan terms, or access available home equity.
Used when buying a property
Prequalification strengthens offers
Loan terms tailored to ownership goals
Replace an existing mortgage
Often used to lower rates or monthly payments
Can adjust loan length or access equity
Homes you live in full time — often qualifying for the most favorable terms.
Vacation or part-time residences with different qualification requirements.
Units or homes intended for income purposes, requiring higher down payments.
Every borrower’s situation is unique, and rates can change daily. Contact one of our experienced Ensure Lending Loan Officers to get accurate, lockable rate information based on your goals.