There are a lot of different loan products in the market today for residential mortgages as well as commercial. I have put a list together of some of the more frequently used ones with a brief description of what they are.
Residential loans

Conventional Mortgage - The most common type of mortgage. The borrower will put down a 20% down payment on the home, and in exchange, the borrower generally has a lower interest rate, less fees associated with the mortgage, and avoids things such as private mortgage insurance. The rate is fixed for a period of 10, 15, 20, or 30 years and customarily does not have any prepayment penalty associated with it.
First Time Home Buyer (FHA) - These loans are fixed-rate mortgages with either a 15 or a 30-year term. They are reserved for first-time home buyers; however, if you have previously purchased a home but then sold it, then you can qualify for another one. The attraction for buyers on this type of loan is that the down payment requirement can be as little as 3.5%; however, there are other fees and mortgage insurance premiums (MIP) that you must pay monthly to protect the lender against default since the initial equity the borrower is putting in is less than 20%.
Veterans Administration (VA) – This mortgage is guaranteed by the U.S. Department of Veterans Affairs and is available to eligible veterans, service members, and their surviving spouses. A couple of distinct differences between VA and FHA would be that there is not a down payment requirement, nor is there a requirement for mortgage insurance premiums (MIP).
First Time Home Buyer (FHA) 203k – a mortgage rehab loan that combines the cost of buying a home with the cost of its repairs or renovations. The loan is insured by FHA and does come with the required guidelines for the renovation portions.
USDA – USDA is a mortgage loan that is dedicated by the United States Department of Agriculture to help low and moderate-income people buy homes in rural areas. These loans do not have a down payment requirement and generally have lower interest rates than conventional mortgages, nor do they require MIPs. Borrowers must have an income that is below a certain limit, which is usually 15% above the median salary for their area, and the home must be in a rural area, which is defined as having a population of fewer than 35,000.
Jumbo loans - Conventional types of mortgages that have non-conforming loan limits. The Federal Housing Finance Agency (FHFA) sets a loan limit each year. This mortgage is used to finance properties that are too expensive for a conventional conforming loan. The down payments range from 10 – 20%, but some lenders may require as much as 20% or more, the exact amount depends on the loan amount, credit score, and whether the property is a single-family, second home, or multifamily unit. Generally, a credit score of 700 or more is required, and a lower DTI (Debt TO Income) ratio is required on other loans.
Piggyback mortgage - This is a loan that is a home equity loan or some sort of line of credit that is made at the same time as your main mortgage. Its purpose is to allow borrowers with low down payment savings to borrow additional money to qualify for a main mortgage without using primary mortgage insurance (MPI). Currently, they are rare, but I still see them from time to time.
Land Contract - This is a legal agreement or type of loan where the buyer and seller agree to terms, and the buyer makes payments. Also known as a form of owner financing. This can be used in both residential and commercial mortgages. Generally, there is a balloon, and the rate is higher than market rates, but all can be negotiated terms as part of the overall sales transaction.
Commercial loans

Adjustable-Rate Mortgage (ARM) - Unlike fixed-rate mortgages, interest rates are generally lower when used in residential borrowing. They are generally fixed for several years (say 5), which is the “term,” and then adjust annually afterward. Before the 2008 financial crisis, ARMs were popular and a big contributor to mortgage defaults, but you still see them in residential, just not as much. In commercial, ARM mortgages are standard and generally have a term of 3 – 5 years, or if you go to the agency (later explained), it could go up to 12 years on larger loan sizes. When the loan term comes due, the loan will adjust depending on which index the lender specifies in the loan documents. Some of these indexes could be the Cost of Funds Index (COFI), the U.S. Prime rate, or some other treasury index.
Balloon Mortgages - Balloon mortgages work like an ARM mortgage; however, when the initial term comes due (3, 5, 7 years), the mortgage balance comes due, whereas, on an ARM, the loan rate adjusts to current market conditions based on which index it’s tied to.
Small Business Administration Loans (SBA) – These are government-backed loans that are for small businesses. These are used for business owners who are financing their place of business, and since the loan is backed by the government, they tend to have lower interest rates and longer amortization periods.
Commercial Mortgage-Backed Securities (CMBS) - This is a type of loan that involves pooling commercial mortgage loans and selling them as bonds to investors. They are also known as conduit loans. They are typically used for financing properties like larger apartment complexes, retail buildings, and office buildings. They are a good option for projects that aren’t a good fit for agency lenders.
Bridge Loans - A short-term loan that is offered by a private investor at a higher than the market interest rate. This would be used primarily for a commercial property that needs renovation before it could start producing cash flow to secure the property and renovation, and then the property owner can take out traditional financing through a bank refinance. In a residential transaction, these would be used for a homeowner to purchase a new home while they are putting their existing home up for sale. Also known as swing loans, gap loans, or hard money loans.
Cash-out refinance - This is a type of loan that can be in the form of many different loan products. Used in both residential and commercial properties, this is when the property owner has recognized equity in their assets and would like to liquidate that equity for other uses for investments or other reasons.
Commercial Real Estate Blanket Loans – These are loans that are intended to cover purchasing multiple real estate properties at once. Instead of having multiple loans on the properties, you would have one loan, and liens would be secured individually. This would be something used if you are refinancing one property to get the equity out to purchase another property or if you are buying a portfolio of properties from one owner. Typically, a value is assigned to each property, so later, if you sell one or refinance another property for a different reason, the payoff on the portion of the blanket loan is calculated based on the value placed on it at the time the blanket loan was created.
Agency Loans – Known as a GSE (Government Sponsored Enterprise), are loans that are sponsored by agencies that include Fannie Mae, Freddie Mac, FHA, and Ginnie Mae.
Fannie Mae Multifamily Mortgage Business - Loans that are a source of capital for commercial real estate transactions that are operated as businesses to generate income. These loans can be used for apartment buildings, senior housing, student housing, affordable housing, assisted living, mobile home parks, health care facilities, and manufactured housing communities. They come with very attractive interest rates as well as longer terms and amortization periods.
Fannie Mae Multifamily Small Loan Program - This is financing for smaller multifamily properties, such as rental properties in urban areas. The program offers a range of features with loan amounts from $1,000,000 up to $9,000,000 with very competitive interest rates and terms.
Fannie Mae Affordable Housing (MAH) loan - Helps investors provide affordable housing in communities. They offer attractive interest rates and terms but are encumbered by a Housing Assistance Program (HAP), also known as Section 8. They do provide flexible terms as well as non-recourse.
Freddie Mac Small Balance Loan (SBL) - This is the preferred loan project for small apartment financing. The program targets apartment financing from $1,000,000 to $7,500,000 and comes with attractive terms and debt service coverage ratios.