Loan Types

Loan types explain how a mortgage is structured and which borrower or property situations it is designed to fit. Some differences are about rate behavior, such as a Fixed-Rate Mortgage versus an Adjustable-Rate Mortgage (ARM). Others are about program rules, such as Conventional Loan, FHA Loan, VA Loan, and USDA Loan.

Start Here by Borrower Goal

Start here after you understand the core borrowing terms in Mortgage Basics. Loan-type pages make more sense once principal, interest, payment, amortization, and lender roles are already clear.

The first high-value comparisons for most readers are fixed versus adjustable, conventional versus government-backed, and standard conforming borrowing versus High-Balance Loan or Jumbo Loan situations. For fixed-rate choices, 30-Year Fixed Mortgage, 20-Year Fixed Mortgage, 15-Year Fixed Mortgage, and 10-Year Fixed Mortgage explain the common payment-versus-payoff tradeoff.

For many borrowers, the first real decision is not one exotic product versus another. It is whether the loan should be Fixed-Rate Mortgage or adjustable, and whether the program path should be Conventional Loan, FHA Loan, VA Loan, or USDA Loan. For adjustable choices, start with Hybrid ARM, then compare 3/1 ARM, 5/1 ARM, 5/6 ARM, 7/1 ARM, 7/6 ARM, 10/1 ARM, and 10/6 ARM. Those pages work best as one comparison set rather than as isolated definitions.

This section also covers special structures such as Assumable Mortgage, Loan Assumption, Combo Loan, 80-10-10 Loan, 80-15-5 Loan, Silent Second Mortgage, Community Second Mortgage, Affordable Mortgage Program, HomeReady Mortgage, Home Possible Mortgage, Land Loan, Construction Loan, Construction-Only Loan, Construction-to-Permanent Loan, Bridge Loan, Piggyback Loan, Blanket Mortgage, Hard Money Loan, Portfolio Loan, Non-QM Loan, Bank Statement Loan, DSCR Loan, Physician Mortgage Loan, ITIN Mortgage, Manufactured Home Loan, Chattel Loan, Renovation Loan, FHA 203(k) Loan, Purchase-Money Mortgage, Seller Financing, and Wraparound Mortgage, where the borrower may step into an existing loan, finance land or a build, pair two liens, use specialized underwriting, qualify through rental-property cash flow, fund a manufactured home, fold approved repairs into the mortgage structure, or use seller-held financing.

For build-versus-repair scenarios, the first high-value distinction is whether the borrower is buying land, creating a home that does not yet exist, improving an existing property, or trying to combine the construction phase and the permanent mortgage into one path. That is where Land Loan, Construction Loan, Construction-Only Loan, Construction-to-Permanent Loan, Renovation Loan, and FHA 203(k) Loan work best as one comparison set rather than as isolated pages.

In this section

• 10-Year Fixed Mortgage
  Short fixed-rate mortgage with fast scheduled payoff and higher monthly payments than longer terms.
• 10/1 ARM
  Hybrid ARM with a ten-year initial fixed period before later adjustments.
• 10/6 ARM
  Hybrid ARM with a ten-year initial fixed period and six-month adjustment intervals afterward.
• 15-Year Fixed Mortgage
  Fixed-rate mortgage with payments scheduled over a 15-year repayment term.
• 20-Year Fixed Mortgage
  Fixed-rate mortgage with a 20-year repayment term, balancing payment level and payoff speed.
• 3/1 ARM
  Hybrid ARM with a three-year initial fixed period before later adjustments.
• 30-Year Fixed Mortgage
  Fixed-rate mortgage with payments scheduled over a 30-year repayment term.
• 5/1 ARM
  Hybrid ARM with a five-year initial fixed period before later adjustments.
• 5/6 ARM
  Hybrid ARM with a five-year initial fixed period and six-month adjustment intervals afterward.
• 7/1 ARM
  Hybrid ARM with a seven-year initial fixed period before later adjustments.
• 7/6 ARM
  Hybrid ARM with a seven-year initial fixed period and six-month adjustment intervals afterward.
• 80-10-10 Loan
  Piggyback mortgage structure with an 80% first mortgage, 10% second mortgage, and 10% down payment.
• 80-15-5 Loan
  Piggyback mortgage structure with an 80% first mortgage, 15% second mortgage, and 5% down payment.
• Adjustable-Rate Mortgage
  Mortgage with a rate that can reset after an initial fixed period.
• Affordable Mortgage Program
  Mortgage program designed to improve access for eligible borrowers through approved loan features or assistance.
• Assumable Mortgage
  Mortgage that may let a new borrower take over an existing loan.
• Balloon Mortgage
  Mortgage with a large lump-sum payoff due before full amortization would end.
• Bank Statement Loan
  Non-QM mortgage using bank-statement cash flow instead of standard income documentation.
• Blanket Mortgage
  Mortgage secured by more than one property or parcel under a single loan structure.
• Bridge Loan
  Short-term financing used to bridge a timing gap between mortgage-related transactions.
• Chattel Loan
  Home-financing loan secured by a movable manufactured home rather than by real property in the usual mortgage sense.
• Combo Loan
  Mortgage structure that uses more than one loan at the same closing to finance a property purchase.
• Community Second Mortgage
  Approved subordinate mortgage or assistance lien used with a first mortgage in certain affordable lending structures.
• Conforming Loan
  Mortgage meeting the size and rule framework used for standard agency eligibility.
• Construction Loan
  Financing used to build a home rather than only buy a completed property.
• Construction-Only Loan
  Short-term construction financing that does not automatically become the permanent mortgage.
• Construction-to-Permanent Loan
  A build-financing structure that starts as a construction loan and then converts into long-term mortgage financing when the home is completed.
• Conventional Loan
  Mortgage not directly backed by FHA, VA, or USDA programs.
• DSCR Loan
  Non-QM investment-property mortgage that leans on rental income coverage instead of ordinary owner-occupant income qualification.
• FHA 203k Loan
  FHA renovation mortgage combining property financing with approved repair funds.
• FHA Loan
  Mortgage insured by the Federal Housing Administration and made by an approved lender.
• Fixed-Rate Mortgage
  Mortgage with an interest rate that stays stable for the scheduled term.
• Fully Amortizing Mortgage
  Mortgage structured so scheduled payments repay the loan by the end of the term.
• Hard Money Loan
  Short-term real-estate-secured financing often based heavily on collateral and exit strategy.
• High-Balance Loan
  Conforming mortgage used in higher-cost areas when the loan amount is above the baseline limit but still within allowed high-cost limits.
• Home Possible Mortgage
  Affordable conventional mortgage program label used for eligible borrowers, properties, and assistance structures.
• HomeReady Mortgage
  Affordable conventional mortgage program label used for eligible low- to moderate-income borrowers and properties.
• Hybrid ARM
  Adjustable-rate mortgage with an initial fixed period followed by later rate adjustments.
• Interest-Only Mortgage
  Mortgage allowing interest-only payments before full principal repayment begins.
• ITIN Mortgage
  Mortgage option for borrowers who use an Individual Taxpayer Identification Number instead of a Social Security number.
• Jumbo Loan
  Mortgage above the conforming limits used for standard agency-backed lending.
• Land Loan
  Financing used to buy land before a completed home or permanent mortgage is in place.
• Loan Assumption
  Process where a new borrower takes over an existing mortgage if rules allow.
• Manufactured Home Loan
  Mortgage or similar financing used to fund an eligible manufactured home.
• Non-Conforming Loan
  Mortgage outside standard conforming limits or agency-style guidelines.
• Non-QM Loan
  Mortgage outside the Qualified Mortgage framework but still legally originable.
• Physician Mortgage Loan
  Mortgage product marketed to physicians or medical professionals with specialized qualification features.
• Piggyback Loan
  Second loan paired with a first mortgage to help finance the purchase.
• Portfolio Loan
  Mortgage a lender keeps instead of quickly selling into the secondary market.
• Purchase-Money Mortgage
  Mortgage or seller-held financing used to help the buyer acquire the property being purchased.
• Renovation Loan
  Mortgage that includes approved repair or improvement funds with property financing.
• Reverse Mortgage
  Loan letting eligible homeowners borrow against equity without standard monthly payments during occupancy.
• Seller Financing
  Home-purchase financing where the seller extends credit to the buyer instead of relying only on a traditional mortgage lender.
• Silent Second Mortgage
  Undisclosed or poorly documented second mortgage that can create serious approval and fraud concerns.
• USDA Loan
  Mortgage program for eligible rural areas or qualifying locations with borrower rules.
• VA Loan
  Mortgage program for eligible borrowers using a Veterans Affairs guarantee structure.
• Wraparound Mortgage
  Seller-financing structure where a new obligation wraps around an existing underlying mortgage.