Your Guide to Different Types of Home Loans

Portfolio of Loan Products

We often get the question, “Which home loan type is best?” The answer is it depends on your individual situation. Supreme Lending offers a wide range of mortgage programs to choose from.

This overview can help give you an idea of the type of home loan that may be the best for you. Your Supreme Lending mortgage professional will review your financial situation in detail, provide honest and accurate information, and make every effort to find a loan solution that works for you.

We are excited to guide you on this journey. Remember, we are always available to answer any questions you have.

Overcoming the Barrier of High Down Payment Requirements

Down Payment Assistance Programs

Down Payment Assistance (DPA) Programs are often for first-time homebuyers and may contribute to community development by revitalizing neighborhoods and promoting local economic growth.

DPA Programs can be game-changers, making homeownership more accessible by providing financial assistance to cover a portion or even the entire down payment. DPA programs not only help overcome the barrier of high down payment requirements but may also increase purchasing power, allowing homebuyers to consider higher-priced properties they might not have afforded on their own.

Here are some highlights of the Texas State Affordable Housing Corporation (TSAHC) Home Sweet Texas and Texas Heroes Down Payment Assistance Programs:

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Tiered Assistance

Tiered assistance from 2% to 5% is available based on market conditions.

Credit Score

620 minimum credit score is required for FHA, VA, and USDA program options. 640 minimum credit score for the Conventional option.

Income Limits & Homebuyer Education

Income limits apply by geography. Homebuyer education is required. Contact your Supreme Lending mortgage professional for details.

Property Types

Down Payment Assistance can be used to purchase a primary residence..

Loan Terms

30-year fixed FHA, VA, USDA and Conventional Loans

Mortgage Credit Certificates

A special tax credit that reduces federal income taxes every year. For first-time homebuyers or those who have not owned a home in the last 3 years.

Learn More About the Texas State Affordable Housing Corporation (TSAHC)

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A Favorite for Homebuyers with a Good Credit Score

Conventional Home Loans

A Conventional home loan is the most common loan type. These loans typically reward good credit with lower interest rates.

A Conventional home loan is offered directly through a private lender, like Supreme Lending. It is not insured or guaranteed through a government agency. There are a variety of loan term options with a Conventional home loan, such as a fixed or adjustable rate. Supreme offers several options for each Conventional loan type. Here are some highlights of a Conventional home loan:

Down Payment

Supreme Lending offers Conventional home loans with as little as 3% down. If you want to avoid paying private mortgage insurance (PMI), a down payment of 20% is required.

Credit Score

A Conventional home loan has a minimum credit score requirement of 620.

Gift Funds

Gift money is allowable to supplement a down payment on a Conventional home loan if it comes from an acceptable source, such as a family member.

Property Types

A Conventional loan can be used to purchase a primary residence, second home, or rental property.

Loan Terms

Conventional loans come in 10, 15, 20, 25, and 30-year terms.

Loan Limits

Conventional home loans offer higher loan limits for individuals or families purchasing a more expensive home or a home in a high-cost area. Loan limits are set by county and are updated annually.

An Excellent Option for First-Time Homebuyers

FHA Home Loans

FHA home loans are designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down.

FHA home loans are funded by a private lender like Supreme Lending, but they are insured by the Federal Housing Administration (FHA). FHA home loans can be offered as a fixed-rate or an adjustable-rate loan. Here are some highlights of an FHA home loan:

Down Payment

If you qualify for an FHA loan, your down payment may be as low as 3.5%. An FHA loan will have mortgage insurance for the life of the loan, but you have the option to refinance once you have 20% equity in your home.

Credit Score

Supreme Lending offers FHA home loans with a minimum credit score of 580.

Gift Funds

Gift funds can be used to supplement a down payment on an FHA home loan if it follows the FHA loan rules. Gifts must be contributions of cash or equity with no expectation of repayment.

Property Types

An FHA loan can be used to finance a single-family home, a multi-family home with up to four units, a condo, or a manufactured home.

Loan Terms

FHA home loans come in 15-year or 30-year term options.

Loan Limits

The maximum loan amount for an FHA home loan varies by county and is known as the FHA lending limit. These loan limits are updated annually.

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We are committed to delivering a SUPREME homebuying experience.

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A Benefit for Active-Duty Service Members and Veterans

VA Home Loans

A VA Home Loan is a valuable benefit for qualifying active-duty service members, veterans, and their surviving spouses.

VA loans are funded by a private lender like Supreme Lending, but they are insured by the U.S. Department of Veterans Affairs. VA home loans offer great rates compared to other mortgage types and there is no private mortgage insurance (PMI) required. VA home loans can be offered as a fixed-rate or an adjustable-rate loan. Here are some highlights of an VA home loan:

Down Payment

There is no down payment requirement for a VA home loan.

Credit Score

Supreme Lending offers VA home loans with a minimum credit score of 580, up to 100% financing.
Gift Funds

Gift Funds

Gift money is allowable to supplement a down payment on a VA home loan if it comes from an acceptable source, such as a family member.

Property Types

A VA loan can be used to finance a single-family home, a multi-family home with up to four units, a condo, or a manufactured home.

Loan Terms

VA home loans come in 15-year or 30-year term options.

Loan Limits

Standard VA loan limits vary by county, but these limits do not represent a cap or max loan amount.

Ideal for Homebuyers in Qualifying Rural Areas

USDA Home Loans

The USDA home loan program was established to help low-income homebuyers purchase housing in rural areas. These loans are only available on eligible properties established by the USDA.

USDA loans are funded by a private lender like Supreme Lending, but they are backed by the United States Department of Agriculture Rural Development. The USDA loan program requires a fixed-rate loan. Here are some highlights of a USDA home loan:

Down Payment

There is no down payment requirement for a USDA loan.

Credit Score

Supreme Lending offers USDA home loans with a minimum credit score of 600, up to 100% financing.

Gift Funds

Gift funds can be used to supplement a down payment on an USDA home loan if it follows the program rules. Gifts must be contributions of cash or equity with no expectation of repayment.

Property Types

The property must be located in an eligible rural area. A USDA loan can be used to finance a single-family home, a condo, or manufactured home.

Loan Terms

The USDA home loan is available as a 30-year mortgage only.

Loan Limits

To be eligible for a USDA home loan, your total household income cannot exceed the local USDA income limits. USDA income limits vary by county and are updated annually.

Contact Us for Help in Finding the Right
Home Loan Solution for You

We are committed to delivering a SUPREME homebuying experience.

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A Solution for Buying or Refinancing a Fixer-Upper

Renovation Home Loans

A Renovation loan from Supreme Lending bundles your mortgage and home improvement costs into one loan. This means you won’t have to apply for two separate loans or pay closing costs twice.

Renovations loans are very flexible when it comes to the eligible property types and the repairs and upgrades you can finance. You can do just about anything, as long as it will be permanently affixed to the property. The loan can be offered as a fixed-rate or an adjustable-rate loan. Here are some highlights of a Renovation home loan:

Down Payment

Supreme Lending offers Renovation home loans with as little as 3% down for homebuyers who qualify.

Credit Score

A Renovation home loan has a minimum credit score requirement of 620.

Gift Funds

Gift funds can be used to supplement the down payment, closing costs, and reserves. Gift fund requirements vary by property type

Property Types

A Renovation loan can be used to buy or renovate a single-family home, multi-family home, a second home, investment property, condo, or a manufactured home.

Loan Terms

VA home loans come in 15-year or 30-year term options.

Loan Limits

Standard VA loan limits vary by county, but these limits do not represent a cap or max loan amount.

Designed for Homebuyers in High-Cost Areas

Jumbo Home Loans

A Jumbo loan can get you into a higher-priced home that a typical Conventional loan can’t cover. A Jumbo loan will often have a higher interest rate and require a larger down payment.

A Jumbo home loan is offered directly through a private lender, like Supreme Lending. It is not insured or guaranteed through a government agency. Supreme offers several competitive options for Jumbo loans. Here are some highlights of a Jumbo home loan:

Down Payment

Supreme Lending offers Jumbo home loans with as little as 10% down. If you want to avoid paying private mortgage insurance (PMI), a down payment of 20% is required.

Credit Score

Homebuyers can qualify for a Jumbo home loan with a minimum credit score as low as 660, depending on other qualifying factors.

Gift Funds

Coming soon.

Property Types

A Jumbo loan can be used to purchase a primary residence, second home, multi-unit property, investment property, or rental property.

Loan Terms

Jumbo loans come in 10, 15, 20, 25, and 30-year terms.

Loan Limits

Supreme Lending offers Jumbo loans up to $3 million for well-qualified homebuyers. A Super Jumbo option is also available for loan amounts greater than $3 million.

Options for Homebuyers with Unique Circumstances

Specialty Home Loans

Not all homebuyers are the same, and we have home loan options for homebuyers with unique circumstances. Here are a few of the specialty home loan options that might be best for your individual situation.

Non-warrantable condos

2-1 Interest Rate Buydown

Medical Professional loan program

Housing Finance Authority (HFA) programs

Down Payment Assistance (DPA) programs

Interest-only adjustable-rate mortgages

Got Questions? We Have Answers!

We are committed to delivering a SUPREME homebuying experience.

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