CONVENTIONAL, FHA, OR SPECIAL PROGRAMS

Mortgage loans are organized into categories based on the size of the loan and whether they are part of a government program.

This choice affects:

  • How much you will need for a down payment
  • The total cost of your loan, including interest and mortgage insurance
  • How much you can borrow, and the house price range you can consider

Choosing the right loan type

Each loan type is designed for different situations. Sometimes, only one loan type will fit your situation. If multiple options fit your situation, try out scenarios and ask lenders to provide several quotes so you can see which type offers the best deal overall.

Conventional

  • Majority of loans
  • Typically cost less than FHA loans but can be harder to get

FHA

  • Low down payment
  • Available to those with lower credit scores

Get all the details

Special programs

  • VA: For veterans, servicemembers, or surviving spouses
  • USDA: For low- to middle-income borrowers in rural areas
  • Local: For low- to middle-income borrowers, first-time homebuyers, or public service employees

 

 

 

Get all the details

Loans are subject to basic government regulation. 

Generally, your lender must document and verify your income, employment, assets, debts, and credit history to determine whether you can afford to repay the loan.

Learn more about the CFPB’s mortgage rules 

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