The homebuying process is full of important decisions. While choosing the right property is the most obvious, one of the biggest financial decisions you’ll make is which mortgage best fits your needs.
Your loan choice will directly affect what type of home you can purchase, how much you’ll pay over time, and how confident sellers feel about your offer. By getting pre-approved early, you’ll have a clearer picture of what you can afford—and you’ll strengthen your position as a serious buyer.
This guide walks you through the most common loan programs, how lifestyle and financial factors influence your choice, and what options might be right for your situation.
The Most Common Loan Options
Conventional Loan – Best for buyers with strong credit and solid savings. Conventional loans offer competitive interest rates, flexible terms, and higher loan limits than government-backed options.
FHA Loan – Popular with first-time homebuyers and those with lower credit scores. FHA loans require as little as 3.5% down and have more flexible qualification guidelines.
VA Loan – Exclusive to eligible Veterans, active-duty service members, and some surviving spouses. VA loans require no down payment, no private mortgage insurance (PMI), and feature favorable terms.
Jumbo Loan – Required when the home price exceeds conforming loan limits ($806,500 in most areas, or $1,209,750 in high-cost markets). Jumbo loans allow financing for luxury or higher-priced properties.
Key Questions to Help You Choose
1. What stage of life are you in?
First-time buyers – FHA loans can be a smart choice due to low down payments and flexible credit requirements.
Growing in your career – Conventional loans may be a good fit if you’re balancing stability with future flexibility.
Established professionals – With steady income and savings, conventional or jumbo loans provide long-term stability.
I would add something about the fact if they have served, etc. how VA loans are the perfect fit with or without any down payment, etc.
2. How long do you plan to stay in the home?
Less than 5 years – An Adjustable Rate Mortgage (ARM) may make sense, offering lower initial rates if you plan to sell or refinance soon.
5–10 years – Look for a balance of stability and flexibility.
10+ years – A fixed-rate mortgage locks in predictable monthly payments for the long haul.
3. How much can you put down?
Large down payment – A conventional loan may secure the lowest rate and eliminate PMI.
Moderate savings – FHA loans require just 3.5% down.
Little to no savings – VA loans allow zero down if you qualify.
Need help? – Down payment assistance programs may bridge the gap for eligible buyers.
4. What’s your credit score?
Excellent (750+) – You’ll likely qualify for the best rates with any loan type.
Good (700–749) – You’ll still have access to strong conventional and government-backed options.
Needs improvement (<700) – FHA loans or other flexible programs may help while you build credit. Check your credit score for free.
Making Sense of Your Mortgage Options
Every buyer’s financial situation, goals, and lifestyle are different—which means there’s no one-size-fits-all loan. By considering your life stage, timeline, savings, location, and credit, you can narrow down the right mortgage option.
The next step? Talk to a trusted mortgage expert who can explain your options in detail and guide you through the process.
Get pre-approved today with Premia and take the first step toward homeownership with confidence.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Premia for current rates. Restrictions apply.
Premia Mortgage, LLC. has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency.