Licensed: CA · OR · NV · AZ · CO · ID · FL · TX · TN
Every Loan Type, Explained

Find the Right
Loan Program for You

From first-time buyers to seasoned investors, from veterans to the self-employed — Take The Rate has a mortgage for every situation. No cookie-cutter solutions.

ConventionalFHA LoansVA LoansBank StatementDSCR / InvestorRefinancingCompare All
Conventional Loans

Conventional Home Loans — Great Rates for Qualified Buyers

A conventional loan is the most common type of mortgage. It's not backed by the government, which means it typically offers the most flexibility in loan amounts, property types, and down payment options for buyers with solid credit.

Who Is It Best For?

Buyers with a 620+ credit score (740+ for the best rates) and stable, documentable income. Great for buyers putting 20%+ down to avoid PMI and for those buying primary residences, second homes, or investment properties.

Down Payment Requirements

Conventional loans allow as little as 3% down for first-time buyers and 5% for repeat buyers. However, putting less than 20% down typically requires Private Mortgage Insurance (PMI), which adds to your monthly payment. PMI can be removed once you reach 20% equity.

Loan Limits (2025 Conforming)

For 2025, the conforming loan limit for single-family homes is $806,500 in most areas, and higher in high-cost markets like California and parts of the Pacific Northwest. Loans above this limit are called jumbo loans and carry different requirements.

Conventional vs FHA: Which Is Better?

If you have a 620–679 credit score, FHA may be better due to lower rate premiums. If you have 700+ credit and 20% down, conventional is almost always better because there's no mortgage insurance premium (MIP) for the life of the loan. Take The Rate will compare both options for your specific situation.

Advantages
  • No upfront mortgage insurance premium
  • PMI cancels when you reach 20% equity
  • More flexibility in property types
  • Available for primary, second home, investment
  • Higher loan limits than government loans
Considerations
  • 620+ credit score required
  • Higher rates with less than 20% down
  • PMI required with less than 20% down
  • Full income documentation required
  • Stricter underwriting than FHA

Conventional Loan at a Glance

Min. Credit Score620+
Min. Down Payment3%
PMI RequiredBelow 20% down
Loan Limit (2025)$806,500
Sample Rate6.750%
Best For620+ credit buyers
Approval Speed24 Hours
No credit check · 100% free
FHA Loans

FHA Loans — The #1 Choice for First-Time Homebuyers

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They're specifically designed to help first-time homebuyers, buyers with lower credit scores, and buyers without large down payments achieve homeownership.

Who Is It Best For?

First-time homebuyers, buyers with credit scores between 580–679, buyers with limited savings for down payment, and anyone who has had past credit challenges. FHA is one of the most accessible mortgage programs available in the United States.

Credit Score Requirements

580+ credit score qualifies for 3.5% down payment — the minimum. 500–579 credit score still qualifies but requires 10% down payment. Below 500 does not qualify for FHA. These thresholds make FHA the most accessible loan for borrowers rebuilding their credit.

FHA Mortgage Insurance (MIP)

FHA loans require Mortgage Insurance Premium (MIP): an upfront premium of 1.75% of the loan amount (can be rolled into the loan) and an annual MIP of 0.55%–1.05% added to your monthly payment. With less than 10% down, MIP lasts for the life of the loan — a key consideration compared to conventional PMI which can be removed.

FHA Loan Limits (2025)

FHA loan limits vary by county. For 2025, the standard FHA limit for a single-family home is $524,225 in most areas, rising to $1,209,750 in high-cost markets. California, Oregon, and other high-cost states often have significantly higher FHA limits. Contact Take The Rate for your county's specific limit.

Advantages
  • 580+ credit score with 3.5% down
  • More forgiving of past credit issues
  • Down payment can be a gift
  • Competitive interest rates
  • Available in all 9 states we serve
Considerations
  • MIP lasts the life of the loan (under 10% down)
  • Loan limits lower than conventional
  • Property must meet FHA standards
  • Higher total cost vs. conventional for strong credit
  • Owner-occupied only (no investment properties)

FHA Loan at a Glance

Min. Credit Score580 (3.5% down)
Min. Down Payment3.5%
Upfront MIP1.75% of loan
Annual MIP0.55% – 1.05%
Sample Rate6.500%
Best ForFirst-time buyers
Approval Speed24 Hours
No credit check · 100% free

VA Loans — The Best Mortgage Benefit You've Earned

If you've served in the U.S. military, a VA loan is almost always the best mortgage available to you. Zero down payment, no PMI, competitive rates, and limited closing costs. Take The Rate specializes in helping veterans maximize this powerful benefit.

Who Is Eligible for a VA Loan?

VA loans are available to: Veterans with honorable discharge, Active-duty service members (90+ days), National Guard and Reserve members (6+ years or 90 days active), Surviving spouses of service members who died in the line of duty. If you're unsure about your eligibility, Take The Rate will obtain your Certificate of Eligibility (COE) for you.

The Key Benefits of VA Loans

Zero down payment required — buy a home with no money down. No private mortgage insurance (PMI) ever. Competitive interest rates often lower than conventional loans. Limited closing costs — the VA restricts what lenders can charge. No prepayment penalty. Can be used multiple times as long as entitlement is restored.

VA Funding Fee

VA loans require a one-time VA funding fee instead of monthly PMI. For first-time use with 0% down, the fee is 2.15% of the loan amount. For subsequent use, it's 3.3%. Veterans with service-connected disabilities are exempt from the funding fee entirely. The fee can be rolled into the loan amount.

VA Loan Limits

As of 2020, VA loans have no official loan limit for borrowers with full entitlement — meaning you can borrow as much as the lender will approve with no down payment. In high-cost counties, this is especially powerful. Veterans with remaining entitlement (from a prior VA loan) may face county-based limits.

Advantages
  • $0 down payment required
  • No private mortgage insurance (PMI)
  • Typically lowest rates available
  • No loan limits for full entitlement
  • Disability exemption from funding fee
Considerations
  • Must meet military service requirements
  • VA funding fee (waived for disabled vets)
  • Primary residence only
  • Property must meet VA minimum standards
  • COE (eligibility certificate) required

VA Loan at a Glance

Down Payment$0 (Zero)
Min. Credit ScoreNo official min.
PMI RequiredNever
Funding Fee2.15% (first use)
Sample Rate6.250%
Best ForVeterans & Military
Approval Speed24 Hours
Check your eligibility free
Bank Statement Loans

Bank Statement Loans — The Self-Employed Mortgage Solution

If you're self-employed, a business owner, freelancer, or contractor, you already know the problem: your tax returns show much lower income than you actually earn because of legitimate business deductions. Bank statement loans solve this — qualifying you on actual deposits, not taxable income.

How Bank Statement Loans Work

Instead of W-2s and tax returns, the lender reviews 12 to 24 months of your personal or business bank statements. They calculate your average monthly deposits and use that as your qualifying income. A business expense factor (usually 50% for business accounts) is applied to arrive at net income. This accurately reflects what most self-employed borrowers actually earn.

Who Qualifies for a Bank Statement Loan?

Self-employed borrowers (2+ years), business owners, sole proprietors, 1099 contractors, gig economy workers (Uber, DoorDash, Instacart), real estate professionals, consultants, and anyone with non-traditional income. You must be self-employed for at least 24 months and have consistent bank deposits to qualify.

Typical Requirements

12 or 24 months of personal or business bank statements. Self-employment for at least 2 years (verified with a business license or CPA letter). Minimum credit score typically 620–660. Down payment of 10–20% depending on loan amount. These loans are considered Non-QM (Non-Qualified Mortgages) and are not sold to Fannie Mae or Freddie Mac.

Advantages
  • No tax returns or W-2s required
  • Qualify on actual deposits, not taxable income
  • Ideal for business owners with write-offs
  • Available for purchase and refinance
  • Primary, second home, and investment property
Considerations
  • Higher interest rate than conventional loans
  • Typically requires 10–20% down
  • Must be self-employed 2+ years
  • Consistent bank deposits required
  • Not available through all lenders

Bank Statement Loan at a Glance

Income DocsBank Statements Only
Statement Period12 or 24 months
Min. Credit Score620+
Min. Down Payment10–20%
Sample Rate7.125%
Best ForSelf-Employed Borrowers
Approval Speed24–48 Hours
No tax returns required
DSCR / Investor Loans

DSCR Loans — The Smart Way to Scale Your Rental Portfolio

DSCR (Debt Service Coverage Ratio) loans let real estate investors qualify for a mortgage based on the rental income the property produces — not the investor's personal income. No W-2s, no pay stubs, no tax returns. Just the numbers on the property.

How DSCR Is Calculated

DSCR = Gross Monthly Rent ÷ Monthly Mortgage Payment (PITIA). A DSCR of 1.0 means the rental income exactly covers the mortgage. A DSCR above 1.0 means the property cash flows positively. Most DSCR lenders require a minimum DSCR of 1.0 to 1.25, though some programs allow 0.75 DSCR for strong borrowers. Take The Rate has DSCR programs for a wide range of scenarios.

What Properties Qualify?

Single-family homes, condos, townhomes, 2–4 unit properties, and even short-term rentals (Airbnb, VRBO) — many DSCR programs accept short-term rental income using AirDNA or comparable rental data. DSCR loans are for investment properties only, not primary residences.

No Limit on Number of Properties

Unlike conventional financing which typically limits borrowers to 10 financed properties, DSCR loans allow experienced investors to continue building their portfolios beyond that limit. Take The Rate has helped investors finance their 15th, 20th, and beyond investment properties using DSCR loans.

Advantages
  • No personal income documentation
  • No limit on number of financed properties
  • Works for long-term and short-term rentals
  • Close in the name of an LLC
  • Scale your portfolio faster
Considerations
  • Higher rate than conventional loans
  • 20–25%+ down payment typically required
  • Investment properties only
  • Property must appraise at purchase price
  • Higher reserve requirements

DSCR Loan at a Glance

Income DocsProperty Income Only
Min. DSCR0.75 – 1.0+
Min. Credit Score620+
Min. Down Payment20–25%
Sample Rate7.500%
Best ForReal Estate Investors
LLC ClosingYes, Available
No income docs needed
Refinancing

Mortgage Refinancing — Lower Your Rate, Cut Your Payment, Access Equity

Refinancing replaces your existing mortgage with a new one — ideally at a lower interest rate, different loan term, or to access your home's equity. Take The Rate makes refinancing fast, simple, and transparent.

Rate & Term Refinance

Lower your interest rate without taking cash out. This is the most common type of refinance. If your current rate is 7.5% and you can refinance to 6.5%, you could save hundreds per month and tens of thousands over the life of the loan. Take The Rate calculates your break-even point so you know exactly when the refinance pays for itself.

Cash-Out Refinance

Borrow against your home's equity by refinancing for more than you currently owe. The difference comes to you in cash. Common uses: home improvements that increase value, debt consolidation (high-interest credit cards), college tuition, investment in another property, or a financial safety net. Rates on cash-out refis are slightly higher than rate-and-term.

When Does Refinancing Make Sense?

Refinancing is worth considering when: current rates are 0.5%+ below your existing rate, you plan to stay in the home long enough to recoup closing costs (break-even analysis), you want to shorten your loan term (e.g., from 30 to 15 years), you want to switch from an adjustable-rate to a fixed-rate mortgage, or you need to access equity for a major expense.

Advantages
  • Lower monthly payment
  • Reduce total interest paid
  • Access home equity (cash-out)
  • Shorten loan term
  • Switch from ARM to fixed rate
Considerations
  • Closing costs (typically 2–5% of loan)
  • Break-even period to recoup costs
  • Resets loan term if not careful
  • Full qualification required (credit, income)
  • Cash-out refis carry slightly higher rates

Refinance at a Glance

Rate & Term RateFrom 6.875%
Cash-Out RateFrom 7.000%
Min. Credit Score620+
Min. Equity Needed5–20%
Avg. Close Time14–21 Days
Break-Even CalcFree Analysis
Free break-even analysis included
Side-by-Side Comparison

Compare All Loan Programs

Not sure which loan is right for you? This table compares every major program at a glance. We'll help you find the best fit.

Loan ProgramMin. CreditMin. DownIncome DocsBest ForSample Rate
Conventional 30-Year620+3%W-2 / Tax ReturnsStrong-credit buyers6.750%
Conventional 15-Year620+3%W-2 / Tax ReturnsFast payoff / equity6.125%
FHA Loan580+3.5%W-2 / Tax ReturnsFirst-time buyers6.500%
VA LoanNo min.$0W-2 / Tax ReturnsVeterans & Military6.250%
Bank Statement620+10–20%Bank Statements OnlySelf-Employed7.125%
DSCR Loan620+20–25%None RequiredReal Estate Investors7.500%
Cash-Out Refinance620+20% equityW-2 / Tax ReturnsAccess home equity7.000%

*Rates are sample rates for well-qualified borrowers and subject to change. Contact Take The Rate for your personalized quote.

Common Questions

Mortgage Loan Questions, Answered

The most important questions about choosing the right home loan.

How do I know which loan program is right for me?
The right loan depends on your credit score, down payment, income type, military status, and goals. A quick guide: if you're a veteran, start with VA. If you have 580–680 credit with limited down payment, start with FHA. If you're self-employed, bank statement loans are typically best. If you're an investor, DSCR is the way to go. If you have 700+ credit with 20% down, conventional is usually optimal. Take The Rate will compare every option and show you exactly what each costs.
Can I use a VA loan more than once?
Yes. VA loan benefits can be used multiple times throughout your lifetime. Once you pay off your VA loan (or sell the home and pay off the loan), your entitlement is fully restored and you can use it again. In some cases, you can even have two VA loans at once if you have remaining entitlement. Take The Rate can check your current VA entitlement status.
What documents do I need for a mortgage application?
For a conventional/FHA/VA loan: last 2 years of W-2s and tax returns, last 30 days of pay stubs, last 2 months of bank statements, photo ID, and signed purchase contract. For a bank statement loan: 12–24 months of bank statements, business license or CPA letter, and ID. For a DSCR loan: property information, lease agreement or rental analysis, and ID. No tax returns or pay stubs needed for bank statement or DSCR loans. Take The Rate will provide a complete document checklist customized for your loan type.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate based on self-reported financial information — it's a rough idea, not a commitment. Pre-approval is a formal process where the lender verifies your income, assets, and credit, resulting in a concrete loan amount you're approved for. Sellers and real estate agents treat pre-approval letters far more seriously than pre-qualifications. Take The Rate issues true pre-approval letters, not just pre-qualifications.

Not Sure Which Loan Is Right for You?

Talk to Travis. No pressure, no obligation — just honest guidance on which loan saves you the most money.

Get a Free Loan Consultation →📞 Call (800) 555-1234