2026-09-14T00:00:00|6.968|0.023|6.274|0.035|6.725|-0.009|6.623|0.032||
Mortgage Loan Types: Find the Right Loan for You
Compare FHA, VA, Conventional, Jumbo, USDA, and more. Understand the pros, cons, and eligibility requirements of each loan type to make the best choice for your home purchase or refinance.
Choose the Right Mortgage Loan Type
Selecting the right mortgage type is one of the most important decisions in the homebuying process. Each loan type has different down payment requirements, credit score minimums, interest rates, and eligibility criteria. Here is a quick comparison of the most common options:
| Loan Type | Min. Down | Min. Credit | PMI/MIP | Best For |
|---|---|---|---|---|
| Conventional | 3%–5% | 620 | Required <20% down (removable) | Good credit, 5%+ down |
| FHA | 3.5% | 580 | Required for life (most cases) | Lower credit, first-time buyers |
| VA | 0% | None (620 typical) | None | Veterans & active military |
| USDA | 0% | 640 | Guarantee fee (lower than PMI) | Rural & suburban buyers |
| Jumbo | 10%–20% | 700+ | Varies | High-value properties |
Loan Type Deep Dives
Government-backed with 3.5% down and flexible credit. Ideal for first-time buyers. Includes mandatory mortgage insurance premium (MIP).
Zero down, no PMI for eligible veterans and service members. Best mortgage benefit available — competitive rates and lenient requirements.
Not government-backed. Best rates for 700+ credit and 20% down. PMI removable at 80% LTV — lower long-term cost than FHA for qualified borrowers.
For homes exceeding conforming loan limits ($766,550 in most areas, higher in CA). Stricter requirements but necessary for high-value properties.
Zero down for rural and suburban properties. Income limits apply. Lower mortgage insurance costs than FHA. Often overlooked but excellent value.
Comparison Guides
Compare down payments, credit requirements, mortgage insurance costs, and long-term savings between FHA and conventional loans.
See why VA loans are almost always the better choice for eligible borrowers — and the rare cases where conventional wins.
Understand the tradeoffs between payment stability (fixed) and lower initial rates (ARM). When each makes sense.
Higher payments but massive interest savings with 15-year terms. See the math behind the most common loan term decision
Which Loan Type Should You Choose?
Quick Decision Guide
Veteran or active military? Start with VA loans — best terms available.
First-time buyer with limited savings? FHA or state down payment assistance programs.
Good credit (700+) with 10%+ down? Conventional for lowest long-term cost.
Buying in a rural/suburban area? Check USDA eligibility for zero-down options.
Home price over $766,550? You will need a jumbo loan.
Use our mortgage calculator to estimate payments for any loan type, or check today's rates to see current pricing.
Explore Loan Types
FRED-sourced data
Updated daily
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Optimal Blue + Freddie Mac
Official Government Resources
CFPB — Owning a Home
Consumer Financial Protection Bureau guide to buying a home,
comparing loan offers, and understanding closing.
HUD — Buying a Home
Department of Housing & Urban Development resources for
homebuyers, including FHA program information.
VA — Home Loans
Official VA home loan program information, eligibility, and
Certificate of Eligibility requests.
Freddie Mac — Rate Survey
Weekly Primary Mortgage Market Survey, a benchmark for national
average mortgage rates.
FHFA — Loan Limits
Federal Housing Finance Agency conforming loan limits by county,
updated annually.
IRS — Mortgage Interest Deduction
IRS guidance on deducting home mortgage interest, points, and
eligible mortgage-related expenses.
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