Loan Types
Conventional, FHA, VA, USDA: which loan fits you?
Different loan programs fit different buyers. Here's a plain-English guide to the main options and who each one is built for.
There isn't one mortgage — there are several loan programs, each with its own rules, and the right one depends on your situation. Here's the quick tour.
Conventional loans
The most common option, not backed by a government agency. Strong credit and a solid down payment earn the best terms, and you can avoid mortgage insurance entirely once you reach 20% equity. Great for buyers with good credit and some savings.
FHA loans
Backed by the Federal Housing Administration, FHA loans allow lower credit scores and down payments as low as 3.5%. They're popular with first-time buyers, though they carry mortgage insurance for the life of the loan in most cases.
VA and USDA loans
VA loans, for eligible service members and veterans, can require no down payment and no monthly mortgage insurance — one of the best deals in lending. USDA loans help buyers in eligible rural and suburban areas with little to no money down.
Which one is right?
The best program is the one that fits your credit, your down payment, and where you're buying. A loan officer can compare them side by side in real dollars so you're choosing with confidence, not guesswork.