Mortgage Loan Comparison
| Loan Type | Min. Down Payment | Min. Credit Score | Best For |
|---|---|---|---|
| Conventional | 3% | 620 | Borrowers with good credit |
| FHA | 3.5% | 580 | Lower credit scores, smaller down payments |
| VA | 0% | Varies by lender | Eligible veterans and service members |
| USDA | 0% | 640 (typical) | Eligible rural/suburban properties |
Which Loan Type Should You Choose?
Conventional loans work well for borrowers with good credit and at least 3% down, avoiding some FHA-specific ongoing insurance costs. FHA loans are more accessible for lower credit scores or smaller down payments, though they carry mortgage insurance for the life of the loan in most cases. VA loans offer excellent terms (often 0% down, no PMI) exclusively for eligible veterans and service members. USDA loans support homebuying in eligible rural and suburban areas with no down payment required.
Fixed vs. Adjustable Rate Mortgages
A fixed-rate mortgage keeps the same interest rate for the entire loan term, offering payment predictability. An adjustable-rate mortgage (ARM) typically starts with a lower rate for an initial period, then adjusts periodically based on market conditions — potentially cheaper short-term but carrying more long-term rate risk.
Frequently Asked Questions
FHA loans generally have the most accessible credit requirements (as low as 580), making them a common choice for first-time buyers or those with limited credit history.
Most eligible VA borrowers can get 0% down, though this depends on the specific loan amount, your entitlement, and the lender's requirements — confirm your specific eligibility.