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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 (a figure the FHFA sets each year, which varies by county), 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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