5 COMMON MORTGAGE TYPES Choosing the right mortgage is just as important as finding the perfect home. The type of loan you select will impact your monthly payments, interest rates, and long-term financial commitment. At NovaKey Realty, we believe in educating our buyers so they can make informed decisions that align with their goals. 1. Conventional Loan A standard mortgage not backed by the government, ideal for buyers with strong credit and a stable income. Offers flexible terms and competitive interest rates. 2. FHA Loan A government-backed loan by the Federal Housing Administration, designed for first-time buyers or those with lower credit scores. Requires a lower down payment and has more lenient qualification criteria. 3. VA Loan Available exclusively to eligible military service members, veterans, and their families. Backed by the Department of Veterans Affairs, this loan offers no down payment and competitive interest rates. 4. Jumbo Loan Designed for high-value properties exceeding conventional loan limits. Requires a strong credit profile and larger down payment but provides financing for luxury or high-cost homes. 5. Adjustable-Rate Mortgage (ARM) Features an interest rate that starts lower than a fixed-rate loan but adjusts periodically based on market conditions. Ideal for buyers planning a shorter stay in their home before refinancing or selling. Check Your Credit Score Early A higher credit score can secure better interest rates. Review your credit report and address any issues before applying for a loan.