Conforming loans are those which meet the guidelines of Fannie Mae or Freddie Mac (Government Sponsored Entities which purchase the loan from the lender after settlement, thus providing the lender funds which can be leant on a new transaction). Because the lender does not have to hold the loan, there is minimal risk of default to the lender. And because the lender is accepting less risk, the rate is lower than other programs. With few exceptions, conforming loan programs will always have the best rate. However there is a maximum allowable loan amount, depending on the number of units of the property. See Fannie Mae's website for the conforming loan limits.

Super-conforming loans emerged from the 2008 Economic Stimulus Bill, which provided a temporary increase in the conforming loan limits. The maximum amounts vary by geographic area, and information on these limits is available on Fannie Mae's website. Like regular conforming loans, super-conforming loans must also meet the guidelines of Fannie Mae and Freddie Mac. However they are treated differently than regular conforming loans. For example, more down payment/equity in the property is required, and the rates are not as good as regular conforming loans. The guidelines and rates, though, are still much better than Portfolio Jumbo loans.

Portfolio Jumbo loans are held by the lender which originates them. Portfolio loans are not sold to Fannie Mae or Freddie Mac, but are held in the lender's portfolio (hence the name). Because the lender is not selling the loan, the approval decision lies solely with the lender. As such, more flexibility is available, and "compensating factors" are considered more than for conforming loans. Also, unlike conforming loans, the maximum loan limit does not have geographical constraints. These loans can thus be very beneficial to borrowers needing a jumbo size loan, but reside in an area not supported by super-conforming loan programs.

An FHA loan is one that is insured against default by the Federal Housing Agency. Because the loan is insured, it is less risky for lenders, so rates and terms are better. However, the cost of this "insurance" is passed through to the borrower. Known as Mortgage Insurance Premium, it is an upfront fee of 1.25% of the loan amount. FHA loans are good choices for borrowers with low credit scores, or who have minimal funds for a down payment . FHA guidelines are also more flexible than those for conforming loans. It is because of these flexible guidelines that FHA loans are often called "first time homebuyer loans".