Conventional loans are those not insured or guaranteed by the Federal Government. They fall into two categories: Conforming, which are loans equal to or under $417,000, and non-conforming, which are loans above $417,000.

This type of loan can be attractive for many reasons. Some of these include:

  • Down payment as low as 3%
  • Opportunity to cancel existing mortgage insurance at 80% LTV
  • Can be used to finance property types up to 4-units
  • Many more loan program options available such as:
    • Fixed Rate Loans (10-year, 15-year, 30-year)
    • Adjustable Rate Loans (ARMs)
    • Hybrid Loans (ie: Piggyback)
    • Jumbo Loans
    • Construction Loans


FHA loans are typically considered an attractive option for a borrower who may not qualify under the standards of a traditional conventional loan. This type of loan is also known as a government loan.

Some benefits of this type of loan are:

  • Greater flexibility for lower credit scores
  • 3.5% down payment
  • Gift funds for down payment and closing costs are permitted
  • Greater flexibility regarding past bankruptcies and foreclosures
  • Will consider alternative credit if little or no credit has been established

FHA loans also have loan limits that vary by state and county. If you have any questions about these loan limits or about the FHA program in general, be sure to give us a call for current government loan program information.


USDA loans were established by the United States Department of Agriculture to provide assistance for moderate to low-income borrowers living in rural areas achieve home-ownership. These loans are offered to qualifying applicants at a 30-year term and no down payment is required. In certain cases, closing costs can be financed. Income limits do apply as well as geographic and vary by state and county.

To determine if subject property is USDA eligible, click here.

The loan programs above are an overview of common, popular options. We at Arbor Financial will make sure that you understand the details and benefits of the loan options that best fit your individual goals.