Discover why so many successful investors support their investment careers with house hacking—and learn from a frugality expert who has “hacked” his way toward financial freedom!
BiggerPockets is the largest online resource for real estate investment
education, networking and active forums. Our goal is to help people find financial freedom through investing in real
estate. If you are looking for a mortgage loan but aren’t sure where to start, BiggerPockets has you covered. Not
sure which mortgage loan you need for your real estate investment opportunity? Check out the information below!
Disclaimer: The links to third party products and service on this page are affiliate links,
meaning that BiggerPockets may earn a commission, at no additional cost to you, if you click
Get pre-approved online in as little as 3 minutes
Get the cash you need and the rate you deserve
No Lender Fees for all your mortgage needs – Save $1,290
95% Customer Satisfaction Rating
Pre-approval in minutes
An easy to understand loan process and a fast close...
An easy to understand loan process and a fast close
A wide selection of loan types- investment, primary, conventional, jumbo and more.
Compare Loan Rates from up to 5 Lenders!
Need a short-term loan? Search for a Hard Money Lender in your area.
Want to find a local lender? Search for Lenders in your area.
Connect to top commercial mortgage lenders, receive real loan quotes, close with confidence.
Get an instant quote and save $3,500 on your next Commercial or Multifamily Loan
The right business card can propel you and your business to the next level. Earn cash back, miles, or points when purchasing the supplies you need for your business to run. Compare cards now!
So what are you signing yourself on to when you take on a mortgage? Let BiggerPockets help!
BiggerPockets is all about providing our members with money-saving advantages to increase their ROI. With Pro Perks, members have access to thousands of dollars in savings on both REI tools and home or other types of loans.
There are a lot of different loan types out there so
make sure you are armed with the information you need to make the best decision for you and your investment.
BiggerPockets has broken down the different loan types for you, if you still have questions be sure to post them
into our forums to get advice from other investors.
A conventional mortgage or conventional loan is any type of homebuyer's loan that is not offered or
secured by a government entity, like the Federal Housing Administration (FHA), the U.S. Department of
Veterans Affairs (VA) or the USDA Rural Housing Service, but rather available through or guaranteed a private
lender (banks, credit unions, mortgage companies) or the two government-sponsored enterprises, the Federal
National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
A VA loan is a mortgage loan available through a program established by the United States Department of
Veterans Affairs. These loans are meant to serve service members, veterans, and eligible surviving spouses.
These loans offer up to 100% financing on the value of a home along with other benefits that make the purchase
of a property a low-expense.
An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing
Administration (FHA). FHA loans can be used for low-to-moderate income borrowers who are unable or do
not want to make a large down payment. These loans allow the borrower to borrow up to 96.5% of the value
of the home (with a credit score of at least 580; otherwise, a 10% down payment is required). The 3.5% down
payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time homebuyers.
A type of conventional loan, HomeReady mortgages are offered by Fannie Mae. Similar to an FHA they are meant
to help low- and moderate-income borrowers buy or refinance. These loans offer reduce the typical down payment
to as low as 3% and reduce mortgage insurance requirements, but they're also more flexible about allowing
contributions from other people. This makes HomeReady an ideal choice if you're relying on others to help
fund your home purchase. Additionally, these loans allow for private mortgage insurance (PMI) to be cancelled
or removed depending on the life-time value of the loan.
A personal loan can be a simple way to secure cash. Typically money is borrowed from a bank, credit union,
online lender or a personal lender. The loan is paid back on a short timeline with monthly installments,
including interest, or structured based on negotiations in the case of a personal lender.
A hard money loan is a short-term and high-interest loan. Unlike traditional loans a HML is backed by the
value of the real estate and not by the credit worthiness of the borrower. They are funded by private investors
or companies as opposed to conventional lenders such as banks or credit unions.
A type of conventional loan, a adjustable-rate mortgage is a type of mortgage in which the interest rate
applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate
is fixed for a period of time, after which it resets periodically, often every year or even monthly.
Should you have any further questions about the different types of mortgages loans feel free to browse our
mortgage loan FAQs.
Still not sure what type of loan you should use? BiggerPockets has a guide to help you make the best decision for
If you signed up for BiggerPockets via Facebook, you can log in with just one click!
Log in with Facebook
We just need a few details to get you set up and ready to go!
Full NameUse your real name
PasswordUse at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.
Connect with 1,000,000+ real estate investors!
Find local real estate meetups and events in your area.
Start analyzing real estate properties, we do the math for you.