Understanding Your Home Loan Options
A quick overview of common loan types to help you know what to ask your lender about.
Conventional
Conventional loans are a widely used financing option that is not backed by a government agency. They
generally call for a solid credit history and steady, documented income, and can be used for a wide
range of property types.
Best for: Buyers with strong credit and stable finances.
FHA
Insured by the Federal Housing Administration, FHA loans are designed to make homeownership more
accessible. They often allow a lower down payment and more flexible credit guidelines than
conventional financing.
Best for: First-time buyers, or buyers who are still building their credit.
VA
Guaranteed by the U.S. Department of Veterans Affairs, VA loans are available to eligible veterans,
active-duty service members, and certain military spouses. They often feature no down payment and no
private mortgage insurance.
Best for: Qualifying veterans, active-duty service members, and eligible spouses.
USDA
Backed by the U.S. Department of Agriculture, USDA loans help buyers purchase homes in eligible rural
and suburban areas, often with no down payment required. Much of our region — including all of West
Virginia — currently falls within USDA-eligible areas.
Best for: Buyers purchasing in a qualifying area.
Jumbo
Jumbo loans are used for homes priced above the conforming loan limits set each year for conventional
financing. Because the loan amounts are larger, they typically involve more detailed credit, income, and
asset requirements.
Best for: Buyers purchasing higher-priced homes.
Renovation
Renovation loans let buyers combine the purchase price and the cost of eligible improvements into
a single loan. This can make it easier to buy a home that needs updates and fund the work without a
separate loan.
Best for: Buyers interested in a fixer-upper or a home that needs updating.
primarily on the income a property is expected to generate rather than the borrower's personal income.
This can make them a fit for buyers building a rental portfolio.
Best for: Real estate investors purchasing income-producing property.
Construction loans provide financing to build a new home or complete a major project, with funds
typically released in stages as the work progresses. Many convert to a standard mortgage once
construction is finished.
Best for: Buyers building a new home or taking on a large-scale project.
secondary market. Because the lender sets its own guidelines, these loans can offer more flexibility for
situations that fall outside standard conventional requirements.
Best for: Buyers whose circumstances don't fit a conventional-loan box.