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Loan types

Which loan is right for you?

Most buyers fit one of a handful of loan types. Here’s the plain-English version of who each one is built for — so you walk into the conversation already ahead.

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?
Sometimes — for example, refinancing out of an FHA loan into a conventional one to drop mortgage insurance once you have enough equity. Your officer can map the path.
Which loan has the lowest cost?
It depends entirely on your situation — credit, down payment, property, and how long you’ll keep the loan. We compare the real total cost across the options you qualify for.

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.

Ready when you are

Let’s match you to the right loan.

Answer a few quick questions — no impact to your credit to check — and we’ll show you what fits.

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