What are the main types of mortgage loans?

The main types are Conventional (not government-backed, best for good credit), FHA (government-insured, low down payment), VA (for veterans, zero down), USDA (rural areas, zero down), and Jumbo (for high-value homes exceeding conforming limits).

Which mortgage type has the lowest down payment?

VA and USDA loans both offer zero down payment. FHA requires 3.5% down with a 580+ credit score. Some conventional programs allow as little as 3% down for first-time buyers.

What is the easiest mortgage to qualify for?

FHA loans are generally the easiest to qualify for, accepting credit scores as low as 580 with 3.5% down, and offering flexible DTI ratios up to 50% with compensating factors.

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

FHA Loans

Government-backed with 3.5% down and flexible credit. Ideal for first-time buyers. Includes mandatory mortgage insurance premium (MIP).

VA Loans

Zero down, no PMI for eligible veterans and service members. Best mortgage benefit available — competitive rates and lenient requirements.

Conventional Loans

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.

Jumbo Loans

For homes exceeding conforming loan limits ($766,550 in most areas, higher in CA). Stricter requirements but necessary for high-value properties.

USDA Loans

Zero down for rural and suburban properties. Income limits apply. Lower mortgage insurance costs than FHA. Often overlooked but excellent value.

Comparison Guides

Not sure which loan type fits? Our head-to-head comparison guides break down the differences:

FHA vs. Conventional

Compare down payments, credit requirements, mortgage insurance costs, and long-term savings between FHA and conventional loans.

VA vs. Conventional

See why VA loans are almost always the better choice for eligible borrowers — and the rare cases where conventional wins.

Fixed vs. ARM

Understand the tradeoffs between payment stability (fixed) and lower initial rates (ARM). When each makes sense.

15-Year vs. 30-Year

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.