Compare all mortgage types and find the perfect loan for your situation. From conventional to government-backed loans, understand the benefits and requirements of each option.
Good credit & 20% down → Conventional | Low down payment → FHA | Veteran → VA | Rural area → USDA | Expensive home → Jumbo
| Factor | Conventional | FHA | VA | USDA | Jumbo |
|---|---|---|---|---|---|
| Down Payment | 3-20% | 3.5% | 0% | 0% | 10-20% |
| Credit Score | 620+ | 580+ | No minimum* | 640+ | 700+ |
| Mortgage Insurance | PMI if <20% | Required | None | Low fee | Varies |
| Property Types | All types | Primary only | Primary only | Primary only | All types |
| Income Limits | None | None | None | 115% AMI | None |
* VA loans have no minimum credit score requirement, but lenders typically require 580+
Standard loans not insured by government agencies
Up to $766,550 (2024 conforming limit)
Typically lowest for qualified borrowers
PMI if <20% down
Insured by Federal Housing Administration
Varies by area, up to $498,257 in low-cost areas
Competitive, often similar to conventional
Required for life of loan
Available to eligible veterans and service members
No limit (based on entitlement)
Often below conventional rates
None (VA funding fee applies)
For eligible rural and suburban areas
No set limit (based on area median income)
Often below market rates
Low annual fee
For loan amounts exceeding conforming limits
Above $766,550 (varies by area)
Competitive but slightly higher than conventional
Varies by lender
Beyond loan type, you'll need to choose a loan term that affects your monthly payment and total interest paid.
Most popular option with stable payments
Most borrowers, especially first-time buyers
Shorter term with higher payments but less interest
Borrowers with higher income who want to pay off quickly
Fixed rate for 5 years, then adjusts annually
Borrowers planning to move or refinance within 5 years
→ Consider VA loans first (0% down, no PMI)
→ Check USDA loan eligibility (0% down)
→ FHA loans (3.5% down) or conventional (3% down)
→ Jumbo loans for amounts above conforming limits
Reality: Many loan programs require as little as 0-3.5% down. While 20% down eliminates PMI on conventional loans, it's not required to purchase a home.
Reality: Anyone who meets the credit and income requirements can use an FHA loan, regardless of whether they've owned a home before.
Reality: VA loan benefits can be reused multiple times. Veterans can have multiple VA loans simultaneously or restore their entitlement after paying off a previous VA loan.
Reality: The best loan depends on your situation. Government-backed loans often offer better terms for borrowers with lower credit scores or limited down payments.
Use our calculators to compare payments and costs for different loan types, or explore our detailed guides for specific loan programs.