Know exactly what you can afford before you search for your home. Get a FREE quote with our home purchase qualifier.
Choosing a purchase product that matches your goals and making sure you get the best rate for your given scenario can feel like playing whack-a-mole.
We’re here to make the home purchase process a whole lot easier, with tools and expertise that will help guide you along the way, starting with a FREE refinance analysis request.
We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether this is your first purchase or 7th.
The 30-year fixed-rate mortgage offers stability through consistent monthly payments and an interest rate that never changes. It’s a long-term loan designed to give you predictability, helping you plan your finances with confidence. Even if home prices or market rates fluctuate, the principal and interest portion of your monthly payment remains the same.
Note: If your monthly payment includes amounts collected for property taxes or homeowners insurance, any changes to those costs may affect your total monthly payment. However, the payment amount for the principal and interest portion of your mortgage will remain fixed for the life of the loan.
Best for: Buyers planning to stay in their home long term and who want stable, predictable payments.
Why it matters: It offers peace of mind and long-term financial consistency, especially in changing market conditions.
This loan works just like the 30-year mortgage but with a shorter payoff window. These loans typically offer lower interest rates in exchange for the shorter payment period. You’ll pay off your home much faster and save significantly on interest payments compared to a 30-year mortgage. While the monthly payments are higher, the long-term savings and faster equity growth can be worth it.
Best for: Homeowners who can afford higher monthly payments and want to pay off their home sooner.
Why it matters: This loan offers the benefit of building equity quickly and eliminating mortgage debt early
An ARM starts with a lower interest rate than fixed loans, which can help reduce your initial payments. After an introductory period, the rate then adjusts periodically based on market conditions. It’s a strategic choice if you plan to sell or refinance before the first scheduled rate adjustment period.
Best for: Buyers expecting to move, refinance, paydown a significant portion of the balance, or have an increase income before the loan adjusts.
Why it matters: You save on interest in the early years, freeing up cash or increasing your buying power.
FHA loans are backed by the federal government and designed to help more people become homeowners. They allow for lower credit scores, down payments as low as 3.5%, and expanded debt-to-income (DTI) ratios—making them more accessible than many conventional loans. These loans also offer greater flexibility in meeting other qualifying guidelines for prospective buyers. While mortgage insurance is required regardless of the down payment amount, FHA loans open the door for those who may not qualify—or who face greater pricing and underwriting hurdles—through traditional lending programs.
Best for: First-time buyers, buyers with limited savings, those with higher DTI ratios, and individuals with some credit challenges.
Why it matters: FHA loans make homeownership more achievable for buyers who may not meet conventional loan requirements
VA loans are a powerful benefit earned through military service, offering some of the most favorable home financing terms available. Eligible service members, veterans, and surviving spouses can purchase a home with no down payment, no private mortgage insurance (PMI), and competitive interest rates. These loans also feature flexible qualification standards and limits on closing costs, making homeownership more accessible and affordable.
At Channel Mortgage, we are proud to serve those who serve us. It’s our honor to help military families secure stable, long-term housing through a program designed specifically to reward their service and sacrifice.
Best for: Active-duty service members, veterans, and surviving spouses who qualify for VA loan benefits.
Why it matters: VA loans maximize your purchasing power, reduce upfront costs, and provide a smoother path to homeownership for those who have served our country.
Jumbo loans are for homes that cost more than what standard Fannie Mae and Freddie Mac loan programs—also known as Conventional Conforming products—will cover. Each year, the government sets limits on how much you can borrow with a “conforming” loan. These loans follow the guidelines set by Fannie Mae and Freddie Mac.
In high-cost areas like the New York City metro region, these limits are higher to reflect local housing prices. If the home you want is priced above those limits, you’ll need a jumbo loan to cover the difference.
Any loan amount above the high-cost conforming limit is considered a jumbo loan. Jumbo loans typically require stronger credit, a larger down payment, and more detailed documentation than conforming loans.
Best for: Buyers in high‑cost markets like the New York City metro area or buyers purchasing luxury, multi‑unit, or high‑value properties that exceed standard limits.
Why it matters: Jumbo loans give you the purchasing power to buy homes above conforming limits, while understanding conforming limits first can help you avoid unnecessary restrictions or higher costs.
USDA loans are designed to make homeownership possible for moderate- to low-income buyers in rural and select suburban areas. These loans offer 100% financing (no down payment required), low interest rates, and reduced mortgage insurance—making them one of the most affordable paths to owning a home.
USDA loans are for primary residences only—not investment properties or working farms. Properties can include land, but the home must be the main feature. Most lenders allow up to 10 acres, but this can vary. The land cannot be used for income-producing activities (e.g., farming or short-term rentals).
The property must be located in a USDA-approved area, which includes many rural towns and outer suburbs. Your household income must fall within the USDA’s local income limits, which vary by location and family size.
There are two main USDA loan programs:
Contact our team here at Channel Mortgage we’ll help you confirm property location, income eligibility, and acreage guidelines—so you’ll know right away if this is a fit for you.
Best for: Moderate-income buyers looking to buy a primary home in eligible rural or suburban areas—with little or no down payment.
A reverse mortgage allows homeowners age 62 and older to access a portion of their home’s equity and receive the borrowed funds in monthly installments, a lump sum, or as a line of credit—creating flexible cash flow during retirement. While no monthly mortgage payments are required, borrowers can choose to make interest payments at any time without penalty, helping to manage or reduce the accumulating loan balance.
Contrary to popular belief, the bank does not own the home at any point—you retain full ownership and title. When the loan becomes due (typically when the borrower moves out, sells the home, or passes away), the payoff amount is limited to 95% of the home’s appraised value, regardless of the accumulated loan balance. This ensures that heirs are not left with debt, and often preserves equity in the home for your family.
2026 Update: The maximum claim amount for FHA-insured reverse mortgages (HECM) is $1,249,125, adjusted annually.
Best for: Seniors who want to stay in their home while creating retirement cash flow, covering healthcare or living costs, or eliminating an existing mortgage.
Why it matters: A reverse mortgage unlocks home equity as a tax-free financial resource—giving you flexibility now and protecting your heirs later.
Looking to build your dream home—or transform the one you already have? A construction or renovation loan allows you to finance both the property and the improvements with one convenient loan, designed to help you create a home that truly fits your needs.
These loans can be used to:
Funds are distributed in stages as work progresses, ensuring the project stays on track and costs are controlled. Once construction or renovation is complete, the loan may convert into a regular mortgage—no need for multiple closings or refinancing.
At Channel Mortgage, we guide you through each step, from contractor coordination to final draw requests, so you can focus on building out your dream home.
Best for: Buyers building a new home, current homeowners renovating, or those buying and fixing up a home that needs work.
Why it matters: These loans let you design or improve the home you truly want—while keeping financing simple, predictable, and aligned with your goals.
Investor DSCR loans are designed for real estate investors who want to qualify for financing based on the rental income of the property—rather than personal income or employment history. Instead of using tax returns or pay stubs, loan approvals are based on how well the property can cover its own expenses—specifically the mortgage payment—through rental income.
This makes DSCR loans ideal for:
A DSCR of 1.0 or higher means the property generates enough income to fully cover the monthly mortgage payment. However, financing may still be available for properties with a DSCR below 1.0, depending on the strength of your overall borrower profile and the property’s market potential. This flexibility allows for strategic investment even when initial cash flow is tight.
Best for: U.S.-based and Foreign National investors seeking asset-based financing without income verification.
Why it matters: DSCR loans offer a low-documentation, income-free qualification path—making it easier to grow your real estate portfolio, even if your personal finances don’t fit the traditional lending model.
Not every borrower fits the traditional lending box—and that’s where Non-QM (Non-Qualified Mortgage) programs come in. These flexible financing options are built for real-life scenarios, especially if you’re self-employed, investing short-term, or don’t have a Social Security number.
Here are some of the Non-QM loan types we offer or can help you explore:
Use your business or personal bank statements (typically 12–24 months) instead of tax returns to qualify. Ideal if you’re self-employed and your reported income doesn’t reflect your actual cash flow.
Your qualifying income is derived from a set percentage of your monthly deposits, depending on your business type. This income is used in place of pay stubs, W-2s, and tax returns.
Qualify using a CPA-prepared profit & loss statement—no tax returns required. A great option for small business owners who keep solid books but write off aggressively.
This type of loan allows you to qualify based on your actual business performance over a rolling 12-month period, rather than annual taxable income. It’s especially helpful if your business is currently performing stronger than it did in the previous calendar year.
Finance properties that generate income from platforms like Airbnb or VRBO.
Lenders evaluate projected or historical income from short-term stays—not traditional long-term leases.
For borrowers who don’t have a Social Security number but do have an Individual Taxpayer Identification Number (ITIN).
These loans open the door to homeownership for many immigrants and non-citizens with verified income and identification.
Best for: Self-employed borrowers, short-term rental investors, or non-traditional income earners who need flexible, common-sense loan options.
