Conventional
The most common loan, not backed by a government agency. A strong fit if you have decent credit and can put down anywhere from 3% to 20%. Put down less than 20% and you’ll typically pay private mortgage insurance (PMI) until you build enough equity — then it can come off. Flexible for primary homes, second homes, and investment properties. See purchase loans →
FHA
Backed by the Federal Housing Administration and designed to widen access. FHA loans allow lower credit scores and down payments as low as 3.5% for qualified buyers, which makes them popular with first-time and credit-building buyers. The trade-off is mortgage insurance that often stays for the life of the loan, so compare the total cost. See FHA loans →
VA
For eligible Veterans, active-duty service members, and qualifying surviving spouses. VA loans are one of the strongest programs available: often $0 down, no monthly mortgage insurance, and competitive pricing. If you’ve served, this is almost always worth a look. See VA loans →
USDA
Backed by the U.S. Department of Agriculture for buyers in eligible rural and many suburban areas, within income limits. For those who qualify, USDA can offer $0 down — a great path if the home’s location is eligible. See USDA loans →
Jumbo
When you need to borrow more than the conforming loan limit (around $806,500 for a one-unit home in most of the U.S. in 2025, higher in some high-cost areas), you’re in jumbo territory. Jumbo loans usually ask for stronger credit and larger down payments, and terms are more tailored. See jumbo loans →
How to choose
- Served in the military? Start with VA.
- Lower credit or minimal down payment? Look at FHA (or a low-down conventional option).
- Buying in an eligible rural/suburban area within income limits? Check USDA.
- Solid credit and want flexibility? Conventional is often the efficient choice.
- Borrowing above the conforming limit? You’ll need jumbo.
The honest answer is that the “best” loan is the one that fits your credit, cash, property, and plans — and there’s often more than one option. That’s exactly the conversation a good loan officer is for.
Can I switch loan types later?
Which loan has the lowest cost?
Not sure which fits? Tell us a little about your situation and we’ll point you to the programs you actually qualify for — no guesswork.
General education, not financial advice or a commitment to lend. Program availability, limits, and requirements vary and change over time; the 2025 conforming limit is cited as general context.