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Have you fallen in love with a home that has great potential, but it needs some (or a lot) of TLC? FHA 203(k) rehab loans are two among several types mortgage rehabilitation loans (a.k.a. renovation loan) that can help you buy a fixer-upper and finance the improvements with one loan. You can also use this loan to refinance your property and fund the cost of renovations. This rehab loan is backed by the government, specifically the Federal Housing Administration (FHA). If you are a “do it yourself” buyer, be aware that there are restrictions with this loan as to who can do the work.

Conventional loans make up 80% of the mortgage market. They are popular among first-time home buyers (FTHB) in the U.S. The requirements for conventional loans tend to be stricter, but they aren’t uniform because guidelines for conventional loans can vary. Sellers like to work with buyers who use conventional loans because they tend to require less paperwork and close more quickly.

A jumbo loan is just what it sounds like, a big loan. Some dream home prices exceed the loan limits set by the Federal Housing Finance Agency. And in some parts of the country, the median price of homes may exceed conforming loan limits which makes finding a traditional loan program for which you can qualify challenging. In these cases, jumbo loans become your best option.

Like conventional loans, FHA loans are also popular for first-time home buyers (FTHB), but you don’t have to be a FTHB to get one. FHA loans are different than conventional loans because they are a specific kind of government-backed mortgage. The requirements for an FHA are less strict. These loans allow for a higher debt-to-income (DTI) ratio, and it’s possible to qualify for one even if you have a bankruptcy or foreclosure in your past. They are one of the easiest of loan types for which to qualify.

A non-qualifying mortgage is also known as a non-qm. This is a specialty loan designed to help homebuyers who don’t meet the strict criteria needed to qualify for a more traditional mortgage. In many cases this is related to income documentation.