Compare the fundamentals
Six common paths, explained in one place.
Loan programs differ in who they serve, how qualification works, and what tradeoffs come with them. Use this overview to understand the shape of each option, then let us help you compare the complete numbers for your situation.
01Flexible, widely used
Conventional
Often considered by
Borrowers with established credit, dependable income, and savings who want broad flexibility across property types.
What shapes the loan
- Some programs may allow a down payment starting at 3%, though 5% or more is common.
- Credit, income, monthly debts, assets, occupancy, and the property are reviewed together.
- Mortgage insurance generally applies when the down payment is below 20%.
- Options may be available for primary residences, second homes, and investment properties.
Often considered by
Homebuyers who need a lower-down-payment path or whose credit profile may not fit conventional guidelines as comfortably.
What shapes the loan
- A 3.5% minimum down payment may be available with an FHA score of 580 or higher.
- Individual lenders may require higher credit scores or apply additional standards.
- The home must be a primary residence and meet FHA property requirements.
- Upfront and annual mortgage insurance premiums are part of the program.
Often considered by
Eligible service members, Veterans, and certain surviving spouses who want to make the most of their earned home-loan benefit.
What shapes the loan
- No down payment is often available for qualified borrowers, subject to entitlement and lender approval.
- A Certificate of Eligibility is required, and the home generally must be a primary residence.
- VA loans do not carry monthly private mortgage insurance.
- A one-time funding fee may apply, while appraisal and residual-income standards also matter.
Often considered by
Income-eligible buyers purchasing a primary home in a qualifying community outside major urban centers—not only on farms.
What shapes the loan
- No down payment may be available when borrower and property requirements are met.
- The property address must fall within a currently eligible USDA area.
- Household income must fit the current limit for the area and household size.
- Upfront and annual guarantee fees apply, and the home must be a primary residence.
Higher loan amounts
Jumbo
Often considered by
Borrowers financing above the conforming loan limit for the property’s county, especially for higher-priced homes.
What shapes the loan
- Credit, down-payment, and debt-to-income standards are specific to each lender and program.
- Cash reserves and the source of funds commonly receive closer review.
- Income, assets, debts, and property details typically require thorough documentation.
- Comparing the complete payment, cash needs, and long-term cost is especially important.
Often considered by
Real estate investors seeking qualification centered primarily on a property’s expected rental cash flow rather than personal income alone.
What shapes the loan
- The property’s expected rent and qualifying expenses are used to assess cash-flow coverage.
- These programs are designed for qualifying investment properties, not primary residences.
- Down-payment, reserve, credit, and property requirements vary by lender.
- Rates, fees, and documentation can differ meaningfully from conventional investment loans.
Program availability, limits, rates, fees, lender standards, and borrower eligibility vary. This information is educational and is not a commitment to lend.
Let’s compare the paths that fit you.
We’ll look at your complete situation and explain the practical differences in payment, cash needs, qualification, and long-term cost.
