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Below, you’ll find a breakdown of the most popular loan types, including Conventional, FHA, VA, and USDA loans. Each loan type offers distinct benefits and requirements, so you can choose the one that fits your financial goals.
Conventional
Best For:
The most common loan type. Borrowers with strong credit and stable income, including first-time and repeat homebuyers.
Minimum Credit Score:
620 or higher (better rates with higher scores).
Loan Terms and Conditions:
Flexible terms (10, 15, 20, or 30 years); loan limits up to $750,000 (higher in high-cost areas).
Down Payment Amount:
As low as 3% for first-time buyers; 5% or more for others.
FHA
Best For:
Those with lower credit scores and limited down payment savings.
Minimum Credit Score:
580 (with 3.5% down); 500-579 (with 10% down).
Loan Terms and Conditions:
15- or 30-year terms; requires upfront and annual mortgage insurance premiums (MIP) higher than Conventional.
Down Payment Amount:
As low as 3.5%
VA
Best For:
Active-duty military, veterans, and eligible surviving spouses.
Minimum Credit Score:
Typically 580-620 (varies by lender).
Loan Terms and Conditions:
No loan limits; no private mortgage insurance (PMI) required.
Down Payment Amount:
0% down (100% financing available).
USDA
Best For:
Buyers in rural or suburban areas with moderate or low income.
Minimum Credit Score:
Typically 640 (may vary by lender).
Loan Terms and Conditions:
Only available for eligible rural properties; no private mortgage insurance (PMI), but there’s an upfront guarantee fee and annual fee.
Down Payment Amount:
0% down (100% financing available).
The Team
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