Understanding Loan Types
Compare conventional, FHA, VA, USDA, and jumbo loans to find the best option for your situation
Choose a Loan Type
Conventional Loans
Traditional mortgages not insured by the government
Down Payment
3% - 20%+
Credit Score
620+
Loan Limits
Up to conforming loan limits
Best For
Borrowers with good to excellent credit
Key Features
- Most common type of mortgage
- Can be conforming or non-conforming
- PMI required if down payment < 20%
- Competitive interest rates
- Flexible terms and features
Advantages
- No upfront mortgage insurance premium
- PMI can be removed when 20% equity reached
- Available for primary, secondary, and investment properties
- Higher loan limits available (jumbo loans)
- Streamlined refinancing options
Considerations
- Higher credit score requirements
- Larger down payment often required
- Stricter debt-to-income requirements
- Private mortgage insurance if < 20% down
This loan type is best for:
- Borrowers with good to excellent credit
- Those who can afford larger down payments
- Buyers purchasing investment properties
- Borrowers wanting to avoid government loan restrictions
Loan Comparison
| Loan Type | Down Payment | Credit Score | PMI/MI | Property Types |
|---|---|---|---|---|
| Conventional Loans | 3% - 20%+ | 620+ | If < 20% down | All types |
| FHA Loans | 3.5% | 580+ (3.5% down) or 500+ (10% down) | Required | Primary only |
| VA Loans | 0% | No minimum (lender requirements vary) | None | Primary only |
| USDA Loans | 0% | 640+ (typically) | Low (0.5%) | Primary only |
| Jumbo Loans | 10% - 20%+ | 700+ | If < 20% down | All types |
Special Loan Programs
203(k) Rehabilitation Loans
FHA loan for homes needing repairs or improvements
- Finance purchase and renovation costs
- Single loan and closing
- Can exceed normal FHA limits
HARP (Home Affordable Refinance Program)
Refinancing for underwater borrowers (if still available)
- No appraisal in many cases
- High loan-to-value ratios allowed
- Reduced documentation
Physician Loans
Special programs for medical professionals
- Low or no down payment
- No PMI in some cases
- Consider future income potential
Bank Statement Loans
For self-employed borrowers who can't document traditional income
- Use bank statements instead of tax returns
- Higher interest rates
- Larger down payments required
🏛️ Official Loan Program Resources
FHA Loan Information
Official FHA loan guidelines and requirements
VA Home Loans
VA loan benefits and eligibility requirements
USDA Rural Development
USDA loan eligibility and area maps
Conforming Loan Limits
Current loan limits by county