Loan Options Overview
30-Year Fixed Mortgage
A 30-year fixed mortgage offers long-term payment stability, predictable budgeting, and the lowest monthly payment among traditional home loan options. Because the interest rate stays the same for the entire 30-year term, homeowners are protected from market fluctuations and can plan confidently. This longer repayment period makes it easier to qualify and frees up monthly cash flow for other expenses or investments. However, the tradeoff is that you’ll pay significantly more interest over the life of the loan and build equity more slowly compared to shorter-term mortgages. Overall, it's a strong choice for buyers who prioritize affordability, consistency, and financial flexibility.
15-Year Fixed Mortgage
A 15-year fixed mortgage is designed for buyers who want to build equity quickly and minimize long-term interest costs. With a fixed rate for the entire 15-year term, borrowers lock in stable payments while benefiting from lower interest rates than those offered on 30-year loans. The shorter repayment period means higher monthly payments, but it also results in dramatically less interest paid over the life of the loan—often saving tens or even hundreds of thousands of dollars. This option is ideal for financially stable buyers who can comfortably handle a larger payment in exchange for faster payoff, rapid equity growth, and significant long-term savings.
Adjustable Rate Mortgage
An Adjustable-Rate Mortgage (ARM) offers a low initial interest rate for a set period—often 5, 7, or 10 years—before the rate begins adjusting periodically based on market conditions. This structure creates lower early monthly payments compared to fixed-rate loans, making ARMs attractive for buyers who plan to move, refinance, or sell before the adjustment period begins. However, once the fixed window ends, the rate (and monthly payment) can increase or decrease depending on the market, creating uncertainty. While an ARM can be a smart strategy for short-term homeowners or those expecting rising income, it carries more risk over the long run due to potential rate hikes and payment volatility.
FHA Loans
FHA loans are government-backed mortgages designed to help first-time buyers and borrowers with lower credit scores qualify for homeownership. Backed by the Federal Housing Administration, these loans allow for down payments as low as 3.5% and offer more flexible credit and income requirements than conventional mortgages. FHA loans also include built-in protections for lenders, which is why borrowers pay mortgage insurance premiums (MIP) for added security. While the lower barrier to entry makes FHA loans appealing, they come with limits on loan amounts and require ongoing insurance costs, which can increase the overall expense. Overall, FHA loans are an excellent option for buyers who need affordability, lower credit thresholds, and a smoother path to approval.
VA Loans
VA loans are government-backed mortgages available exclusively to eligible veterans, active-duty service members, and qualifying military spouses. These loans are known for offering zero down payment, no private mortgage insurance (PMI), and competitive interest rates—making homeownership significantly more affordable for those who qualify. Backed by the Department of Veterans Affairs, VA loans also feature flexible credit requirements and limits on closing costs to protect the borrower. While there is a one-time VA funding fee (which can be rolled into the loan), the overall savings and benefits often outweigh the cost. For eligible buyers, VA loans are one of the strongest and most accessible financing options available.
Jumbo Loans
Jumbo loans are high-value mortgages designed for borrowers purchasing homes that exceed conforming loan limits set by Fannie Mae and Freddie Mac. Because these loans involve larger amounts—often used for luxury properties or homes in high-cost markets—lenders apply stricter requirements, including higher credit scores, stronger income documentation, and larger down payments. Jumbo loans typically come with slightly higher interest rates to offset the increased lender risk, though competitive options are widely available for well-qualified buyers. While they offer the flexibility to finance expensive properties without multiple smaller loans, jumbo mortgages demand strong financial stability and substantial reserves. For high-income borrowers looking to purchase premium real estate, jumbo loans provide the financing needed to move confidently in competitive markets.
203K Loans
203(k) loans are specialized FHA-backed mortgages designed for buyers who want to purchase a home that needs repairs, upgrades, or full renovation. Instead of taking out separate loans for the home purchase and the rehab work, a 203(k) combines both into a single mortgage—covering the property’s purchase price and the cost of approved improvements. These loans come in two types: the Limited 203(k) for smaller projects (up to $35,000 in repairs) and the Standard 203(k) for major renovations, structural work, or full rebuilds. Because they’re FHA loans, they offer low down payment requirements and flexible credit qualifications, but they also include mortgage insurance costs and require working with approved contractors and a detailed project plan. For buyers willing to tackle a fixer-upper, a 203(k) loan can be a powerful way to build instant equity and customize a home to their needs.
USDA Loans
USDA loans are government-backed mortgages designed to help buyers purchase homes in eligible rural and suburban areas with zero down payment and highly competitive interest rates. Backed by the U.S. Department of Agriculture, these loans are aimed at supporting low- to moderate-income households and come with flexible credit requirements and reduced mortgage insurance costs compared to FHA loans. To qualify, the property must be located in a USDA-approved area, and the borrower must meet specific income limits based on their region. While USDA loans offer some of the most affordable home financing options available, they are limited by geographic and income eligibility. For buyers seeking affordability and willing to live outside densely populated areas, USDA loans provide a powerful path to homeownership with minimal upfront cost.
Reverse Mortgage
A reverse mortgage is a special type of home loan available to homeowners aged 62 and older, allowing them to convert part of their home’s equity into cash without selling the property or making monthly mortgage payments. Instead of the borrower paying the lender, the lender pays the homeowner through a lump sum, monthly payments, or a line of credit. The loan balance grows over time and is repaid when the homeowner sells the home, moves out permanently, or passes away. While reverse mortgages can provide valuable income for retirees needing financial flexibility, they reduce home equity over time and come with upfront fees, interest charges, and strict occupancy requirements. For seniors who want to tap into their home’s value while continuing to live there, a reverse mortgage can be a helpful financial tool—provided they fully understand the long-term impact.
Frequently Asked Questions
We understand the mortgage process can feel overwhelming, so we’ve simplified the answers you need most.
What does it mean to work with Craig?
It means working directly with a dedicated mortgage professional who guides you from application to closing—making sure your loan process is smooth, transparent, and stress-free.
How do I know which mortgage type is right for me?
Craig helps you compare loan options like FHA, VA, and conventional loans to find the best fit for your credit, income, and long-term goals.
How much do I need for a down payment?
It depends on your loan program—some require as little as 3%, and certain buyers may even qualify for zero-down options. Craig can show you what’s possible.
What credit score do I need to qualify for a mortgage?
Most lenders look for a credit score of 620 or higher, but Craig works with multiple programs that can help buyers with less-than-perfect credit.
How long does it take to close on a home loan?
With Craig’s streamlined process and direct communication, most loans close in 21–30 days or sooner, depending on your readiness.
Can I get pre-approved before finding a home?
Absolutely. Craig offers fast, personalized pre-approvals so you can shop for homes confidently and make stronger offers.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification gives a general idea of what you can afford, while pre-approval verifies your financials—Craig always recommends pre-approval to give you an edge in the market.
