What type of mortgage is right for me?

Compare the major mortgage options

The right mortgage depends on your finances, down payment, credit profile, and property plans. According to the CFPB, conventional loans are generally made by private lenders, while government-supported programs include FHA, VA, and USDA mortgages. Each has different eligibility, down payment, insurance, and property requirements. Conventional loans may suit borrowers with strong credit or larger down payments. FHA loans can provide alternatives for borrowers who meet their criteria, while VA and USDA programs serve eligible borrowers and properties. Some buyers may also qualify for state or local assistance programs. A lender should explain which options are available to you.

Consider term, rate structure, and total cost

Loan type is only part of the decision. A 30-year mortgage typically has lower monthly principal and interest payments than a comparable 15-year loan, but may cost more in interest over time. Fixed-rate loans offer a consistent interest rate, while adjustable-rate loans can change after an initial period. Review mortgage insurance, origination fees, discount points, and the annual percentage rate as well as the quoted interest rate. A loan with a lower initial payment is not automatically less expensive over the time you plan to keep it.

Request comparable estimates from lenders

The CFPB recommends comparing Loan Estimates for similar loan types and terms. Ask lenders to model more than one option if you qualify, then review cash required at closing, monthly costs, and the effect of rate changes where applicable. Your expected time in the home may influence whether points or lender credits make sense. For buyers in Pittsburgh and surrounding communities, the appropriate loan may also depend on the property’s condition, type, and location. A qualified mortgage lender can evaluate eligibility and affordability. The goal is not to choose the program with the lowest advertised rate, but the mortgage that best fits your needs and financial plan.

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Sources

Consumer Financial Protection Bureau: Understand the Different Kinds of Loans Available; Compare and Negotiate Your Loan Offers

National Association of REALTORS®: Consumer Guide: Assistance Programs

*Mortgage program eligibility, rates, fees, and assistance availability change. Consult a qualified lender for personalized loan recommendations. Includes AI-generated content.