Which loan typically offers a higher loan-to-value ratio compared to conventional loans?

VA loans typically offer a higher loan-to-value (LTV) ratio compared to conventional loans due to the backing provided by the U.S. Department of Veterans Affairs. This helps veterans and active-duty military members secure mortgages without needing a down payment, which contributes to an LTV ratio that can go as high as 100%.

In contrast, conventional loans generally require a down payment, which limits the LTV ratio. This requirement reflects the lender's need to manage risk, as the more capital a borrower can invest upfront, the lower the risk of default. Jumbo loans, though they may also cater to borrowers seeking higher loan amounts, do not inherently provide a higher LTV ratio since they are not backed by any government agency and often require significant down payments. Commercial loans are structured differently, often based on the income generated by the property rather than LTV ratios, and typically have unique criteria. Fixed-rate loans pertain only to the type of interest rate structure and do not specifically influence the LTV ratio.