Types of mortgage loans, and who each one is for
Conventional, FHA, VA, USDA, jumbo and the loans for people who don’t fit the box. What each one is built for.
There are fewer types of mortgage loans than the internet makes it look. Most buyers end up in one of three normal loans, conventional, FHA or VA, and everything else here exists for a situation those three can’t handle. You don’t have to pick the program before you call me: I look at your credit, income, debts and savings, price the options that fit, and show you the payment on each.
Which type of mortgage loan fits you?
First-time buyers: start with FHA vs conventional. It’s the choice most first-time buyers face, and the answer turns on your credit score, your debts and how long you’ll keep the loan.
Veterans and service members: start with the VA loan. If you’re eligible, it’s the first one I check.
If saving a down payment is the hurdle: VA first if you’re eligible, then USDA if the address and your household income fit, then Virginia Housing’s first-time buyer programs.
Bigger homes: above the 2026 conforming limit of $832,750 in the Richmond area, you’re in jumbo territory, and sometimes there’s a way to stay out of it.
Self-employed buyers and investors: a normal loan first, if your tax returns support it. Loans that qualify you on bank statements or on a property’s rent are the fallback when they don’t.
Not sure who to borrow from: we all borrow our money from the same place. The difference is what you pay to do it, and who’s working for you while you do.
The main programs
No program minimum credit score on automated approvals (many lenders require 620) and an $832,750 loan limit.
A 580 credit score for the minimum down payment, a home you’ll live in, and the $707,250 Richmond-area limit.
Which is better depends on cost. At a score of about 720 or higher, conventional usually costs less; below 680, FHA usually wins.
Eligible service on your COE, a lender’s credit approval, the 41% DTI and residual income tests, and a home you’ll live in.
The address must be USDA-eligible and household income at or under $130,550 for 1 to 4 people in the Richmond area in 2026.
Bigger or different
A first mortgage over $832,750 is jumbo around Richmond, Virginia. What changes above it, and how a piggyback keeps you conforming.
Conventional loan requirements for condos include a building that meets Fannie Mae and Freddie Mac standards.
One loan with one closing covers the land, the build and construction interest, then becomes your permanent VA mortgage.
Paid differently
Two years of returns, how write-offs cut qualifying income, and when a bank statement loan fits.
A DSCR loan qualifies an investment property on its rent, not your income: rent divided by the full payment. The math, pricing, LLCs and when to use one.
Who you borrow from
Where the money in your rate goes, and which pay you can actually see.
Not seeing your situation?
Text me the details. If it’s a question other people will have, it becomes the next guide on this site, with your details left out.
Call or text (804) 617-6830