Every door we can open — purchase and refinance — explained in one place. The guide we hand every borrower before a single form is filled out.
Most people start the mortgage process at the wrong end — they pick a lender, fill out a form, and find out months later they were put in the wrong loan. We do it backwards on purpose. First you understand the menu. Then we map your file to the door that actually fits.
This guide is that menu. It covers every program we work — for buying and for refinancing — at a level deep enough to make you the most informed person in the room, but short enough to read in one sitting.
You do not need to know which one is right for you. That is our job. Read this so you understand the landscape, then book a call and we'll match your file to the right structure together.
Inside:
Each program here has its own deep-dive playbook at heromortgagegroup.com if you want to go further. This guide is the map; the playbooks are the territory.
Five doors. Each one solves a different problem. The right one depends on your credit, your cash, your income type, and the property.
What it is: The default American mortgage — backed by Fannie Mae or Freddie Mac. The loan most buyers graduate to.
Best for: Credit 680+, 3-20% down, clean credit history, single-family or 2-4 unit, loan amounts up to $832,750 (2026 conforming limit; higher in high-cost counties).
Key facts: As little as 3% down (Conventional 97 / HomeReady / Home Possible / 1% Down). PMI required under 20% down but it's removable — automatically at 78% LTV or by request at 80%. The only program that finances second homes and investment property.
What it is: Government-insured loan built to make homeownership accessible. Finances more first-time American buyers than any other program.
Best for: Credit 580-680, higher DTI (up to 56.99%), limited cash (3.5% down, gift funds OK), recent past credit events, or the 2-4 unit owner-occupied wealth play.
Key facts: 3.5% down. Mortgage Insurance Premium stays for the life of the loan in most cases — standard exit is a conventional refi at 20% equity. Up to 6% seller concessions. The 2-4 unit owner-occupied strategy lets tenants pay most of your mortgage.
What it is: The most powerful mortgage benefit in the country — earned through military service, available for life, reusable across a career.
Best for: Active-duty, veterans, Guard/Reserve with qualifying service, and surviving spouses. If you're eligible, VA almost always beats every alternative.
Key facts: $0 down. No PMI. Below-market rates. No county loan limit with full entitlement. Funding fee waived entirely for any VA disability rating. Reusable and stackable (dual-VA strategy for PCS moves). We pull your Certificate of Eligibility free in ~10 minutes.
What it is: Zero-down rural development loan. The eligibility map is far broader than the name suggests — many exurban and commuter-belt areas qualify.
Best for: Buyers in USDA-designated areas (check the map) with household income within USDA limits (~115% of area median) and minimal cash for down payment.
Key facts: $0 down. No PMI (a smaller Guarantee Fee instead). Below-market rates. Primary residence only. Household income test includes all adult earners. We pre-screen property eligibility in ~60 seconds.
What it is: Loan programs for borrowers whose financial reality doesn't fit the standard documentation box — even though they're often financially stronger than the average buyer.
Best for: Self-employed with tax-suppressed income (bank statement loans), real estate investors scaling a portfolio (DSCR), 1099 contractors, or retirees with assets but limited monthly income (asset-depletion).
Key facts: Bank-statement loans qualify on business deposits, not tax returns. DSCR loans qualify on the property's rent, not your personal DTI — the standard tool for portfolio building. Slight rate premium over conventional, but qualifies files a retail lender would decline.
Refinancing isn't one thing — it's four different tools for four different goals. The question is never "should I refinance?" It's "does the math work for how long I'll keep this loan?"
Goal: Lower your rate, change your term, or drop mortgage insurance. No cash out.
The math: Break-even months = total closing costs ÷ monthly payment savings. Under 24 months is a clear yes; 24-48 needs a longer hold horizon; over 60 is usually no. The most common move: FHA → conventional once you hit 20% equity to eliminate FHA's lifetime MIP.
Goal: Pull equity out as cash — for renovation, debt consolidation, or an investment property down payment.
The math: Typically up to 80% LTV (conventional) or 90% (VA cash-out). Converts equity to liquidity, but resets your amortization. We model the lifetime-interest impact, not just the monthly payment, so you see the full picture before signing.
Goal: VA-to-VA streamline refinance to a lower rate.
The math: No appraisal in most cases. Reduced documentation. 0.5% funding fee (waived entirely for disability-rated veterans). VA requires the closing costs to be recouped via monthly savings within 36 months — we pre-qualify against this rule before pulling credit. The cleanest refinance product in the industry.
Goal: Lower the rate on an existing FHA loan with minimal documentation.
The math: No income verification or appraisal required in most cases, provided there's a net tangible benefit (rate cut ≥0.5% or payment cut ≥5%). Fast — often closes in 10 days.
The most underutilized category in American mortgage finance. These programs stack on top of a first mortgage (FHA, VA, USDA, or conventional) to cover some or all of your cash to close.
The largest first-responder DPA program in the country. 100+ eligible occupations (all firefighters, EMTs, paramedics, sworn law enforcement, K-12 teachers, healthcare workers, active military, and many government roles). Zero-interest deferred second mortgage — effectively a grant if you stay in the home. Florida is our home state; this is our most-closed program.
HUD program offering half off the list price of HUD-owned homes in revitalization areas. Eligible: full-time sworn firefighters, EMTs, K-12 teachers, law enforcement. Requires a 3-year owner-occupancy commitment. Layers with FHA financing on the remaining 50%.
Administered by TSAHC. Up to 5% of the first mortgage amount as a DPA grant — never repaid. Covers firefighters, EMS, law enforcement, teachers, corrections officers, and veterans.
CalHFA MyHome (CA) · CHFA SmartStep (CO) · AZHFA HOME+PLUS (AZ) · Oregon Bond (OR) · WSHFC Home Advantage (WA) · UHC FirstHome (UT) · IHFA First Loan (ID) · MSHDA MI Home Loan + 10K DPA (MI) · THDA Great Choice + Homeownership for Heroes (TN) · PHFA Keystone + K-FIT (PA). Each pairs a below-market bond-rate first mortgage with down payment assistance.
You bring 1% down, the lender contributes 2%, you walk in with 3% equity. Income limit applies (80% of area median). One of the most powerful single doorways into homeownership for working families with strong credit but limited cash.
A plain-English starting point. This is directional, not a determination — your real answer comes from a conversation, but here's the logic we use.