Compare the major mortgage loan programs available to home buyers in Washington, Oregon, Colorado, Idaho, and California. This guide explains how the main loan categories differ, what tradeoffs to expect, and which type may fit best based on your down payment, eligibility, loan size, and how long you expect to keep the home.
| Loan program | Rate structure | Typical fit | Government-backed? | Down payment sensitivity | PMI or insurance considerations | Loan-size relevance |
|---|---|---|---|---|---|---|
| Fixed-rate mortgage | Rate stays the same over the term | Borrowers who want predictable principal and interest payments | No, depends on the underlying loan type | Varies by loan type | May involve PMI or mortgage insurance depending on the loan | Available across conforming, high-balance conforming, and jumbo categories |
| Adjustable-rate mortgage (ARM) | Initial fixed period followed by periodic rate changes | Borrowers comfortable with future payment changes or planning a shorter time in the home | No, depends on the underlying loan type | Varies by loan type | May involve PMI or mortgage insurance depending on the loan | Available in conforming and jumbo structures |
| FHA loan | Can be structured with fixed or adjustable terms | Borrowers who may need more flexible qualification criteria | Yes | Often considered by borrowers with limited down payment or qualification challenges | Mortgage insurance applies | Not mainly defined by jumbo loan sizing |
| VA loan | Can be structured with fixed or adjustable terms | Eligible military borrowers and qualifying family situations | Yes | Notable option for eligible borrowers who want a low-down-payment path | Does not use PMI in the same way as conventional loans | Loan size still matters, but eligibility is the starting point |
| Conforming loan | Can be fixed or adjustable | Borrowers whose loan amount fits within standard local loan limits | No, though it follows GSE size standards | Varies by product | PMI may apply on conventional conforming loans with less than 20% down | Core category for standard loan sizes |
| High-balance conforming loan | Can be fixed or adjustable | Borrowers in higher-cost areas whose loan amount is above standard conforming limits but still within local high-balance limits | No, though it still fits conforming rules for the area | Often more sensitive to qualification and pricing than standard conforming | PMI may apply when structured as a conventional loan with less than 20% down | Bridges the gap between standard conforming and jumbo in some areas |
| Conventional loan | Can be fixed or adjustable | Borrowers who want a non-government-backed option | No | Often more attractive with stronger credit and more cash down | PMI is typically required with less than 20% down | May be conforming or jumbo depending on loan amount |
| Jumbo loan | Can be fixed or adjustable | Borrowers whose loan amount exceeds local conforming limits | No | Often calls for stronger qualifications and more cash reserves | PMI rules depend on the lender and loan structure | Used when financing needs go beyond conforming or high-balance conforming limits |
These mortgages come with an interest rate that does not change over the term of the loan. Once you lock your rate, your principal and interest payment stays predictable even if market rates move up or down. A fixed-rate mortgage is often a practical fit for borrowers who expect to stay in the home for a long time or who simply want payment stability rather than future rate uncertainty.
Unlike fixed-rate mortgages, ARMs start with an introductory rate period and then adjust at set intervals. The initial rate may be lower than a comparable fixed-rate option, which can make an ARM appealing upfront. The tradeoff is that the rate and payment can rise later, so these loans tend to fit borrowers who are comfortable with changing payments or who may sell or refinance before the introductory period ends. The key difference from a fixed-rate mortgage is predictability versus flexibility: a fixed loan protects against payment changes, while an ARM can offer a lower starting rate in exchange for future uncertainty.
These loans are backed by the FHA and may be easier to qualify for because of their less stringent criteria when it comes to the credit score needed to get approved. They are often considered by borrowers who may have trouble qualifying for conventional financing or who want a lower-down-payment path. The tradeoff is that FHA loans come with mortgage insurance requirements, so they are often most useful when qualification flexibility matters more than avoiding insurance costs.
Members of the military and their families may be eligible for VA loans that do not require a down payment (with certain exceptions). That can make VA financing one of the strongest options for eligible borrowers who want to preserve cash. In many cases, the main comparison is not VA versus FHA, but VA versus conventional: if you qualify for VA financing, it may be worth comparing both side by side based on payment, fees, and long-term fit.
Conforming loans are mortgages that stay within the size limits imposed by government sponsored entities (or GSEs). In practical terms, this is the standard loan-size category many buyers fall into.
High-balance conforming loans are still conforming loans, but they apply in higher-cost areas where local limits are higher. They sit between standard conforming and jumbo financing. If your loan amount is above the regular conforming limit for your area but still within the local high-balance limit, you may be able to use a high-balance conforming loan instead of a jumbo loan.
Conventional loans are mortgages that are not backed by the government. This category is different from conforming because “conventional” describes the lack of government backing, while “conforming” describes whether the loan amount fits applicable size limits and guidelines. In other words, many conventional loans are also conforming, but a conventional loan can also be jumbo if it exceeds local conforming limits.
These loans are often better suited for borrowers with a decent credit score. If a down payment of less than 20% is made, then Private Mortgage Insurance (PMI) will need to be paid. That makes down payment size an important part of the decision: borrowers with less than 20% down may still choose conventional financing, but they should account for PMI when comparing it with other loan options.
These are home loans that exceed the loan limits set forth in the particular area they are taken out in. The main distinction between jumbo and conforming financing is loan size. Once a loan amount rises above the local conforming or high-balance conforming limit, jumbo financing may be required. Jumbo loans are often used for higher-priced homes and may involve tighter qualification standards than smaller conforming loans.
Private Mortgage Insurance is typically required on conventional loans where the borrower puts down less than 20% of the purchase price. PMI is not a separate loan program, but it does affect how affordable a conventional low-down-payment loan feels month to month. For many buyers, the practical question is not simply whether PMI exists, but whether paying PMI is worth it in order to buy sooner with less cash upfront.
Start with the factors that most directly affect your choices:
Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been providing several mortgage programs and products with flexible qualification criteria to borrowers across the Pacific Northwest. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, reach out to us if you are ready to get pre-approved for a mortgage.
Common mortgage loan programs include fixed-rate mortgages, adjustable-rate mortgages, FHA loans, VA loans, conforming loans, high-balance conforming loans, conventional loans, and jumbo loans. The right fit depends on down payment, eligibility, loan size, and how long you expect to keep the home.
A fixed-rate mortgage keeps the same interest rate over the loan term, which makes principal and interest payments more predictable. An ARM starts with a fixed introductory period and then adjusts at set intervals, which can mean a lower starting rate but less certainty later.
A fixed-rate mortgage often fits borrowers who want long-term payment stability or expect to stay in the home for a long time. An ARM may fit borrowers who are comfortable with future payment changes or who expect to sell or refinance before the introductory period ends.
Conventional describes a loan that is not government-backed. Conforming describes a loan that fits local size limits and guidelines used by the government-sponsored entities. Many loans are both conventional and conforming, but a conventional loan can also be jumbo if it exceeds local conforming limits.
PMI typically applies on conventional loans when the down payment is less than 20%. It is not a separate loan program, but it can affect monthly affordability and should be compared against other options such as FHA or VA loans when relevant.
The article explains that PMI is typically required on conventional loans with less than 20% down, but it does not provide removal rules. Borrowers comparing options should ask about PMI terms when reviewing specific conventional loan structures.
No. FHA loans are not described as first-time-buyer-only loans here. They are often considered by borrowers who want more flexible qualification criteria, have qualification challenges, or want a lower-down-payment path.
Yes. For eligible borrowers, the comparison is often VA versus conventional rather than VA versus FHA. It can make sense to compare payment, fees, down payment needs, and long-term fit side by side.
The main distinction is loan size. If the loan amount stays within local conforming limits, it is conforming. If it exceeds the local conforming or high-balance conforming limit, jumbo financing may be required.
A high-balance conforming loan is still a conforming loan, but it applies in higher-cost areas where local limits are higher than standard conforming limits. It can bridge the gap between standard conforming and jumbo financing for borrowers whose loan amount is above the regular local limit but still within the area’s high-balance cap.
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