Conventional loans are typically used to purchase or refinance a primary residence, second home, or investment property. One advantage of conventional loans is that borrowers can avoid paying mortgage insurance if they make a down payment of 20% or more. However, borrowers who put down less than 20% may be required to pay private mortgage insurance (PMI). To qualify for a conventional loan, borrowers typically need a good credit score, a stable income, and a low debt-to-income ratio.

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Conventional loan with a 20% down payment. Loan Amount $240,000 with a 7.375% fixed interest rate/7.445 % APR for 30 years = $1657.62 monthly payment^.

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^Payment is Principal, Interest & Mortgage Insurance based on a 800 credit score. Does not include amounts for taxes and home insurance premiums. The actual payment obligation will be greater.

An FHA loan is a type of mortgage that is guaranteed by the Federal Housing Administration (FHA), a government agency. FHA loans are popular among first-time homebuyers and those with lower credit scores or limited down payment savings. FHA loans typically have more lenient credit and income requirements than conventional loans, and may allow a down payment as low as 3.5%. However, FHA loans require borrowers to pay mortgage insurance premiums (MIP) for the life of the loan, which can increase the overall cost of the loan.

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FHA loan with a 3.5% down payment. Loan Amount $288,491 with a 7.25% fixed interest rate/8.060% APR for 30 years = $2,321.90 monthly payment^.

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^Payment is Principal & Interest. Does not include amounts for taxes and insurance premiums. The actual payment obligation will be greater.

A VA loan is available to eligible active-duty service members, veterans, and surviving spouses. VA loans are designed to help veterans and their families become homeowners by providing them with more favorable loan terms than conventional loans. VA loans typically offer competitive interest rates, no down payment requirements, and no private mortgage insurance (PMI) requirements. VA loans can be used to purchase or refinance a primary residence. 

A USDA loan is a type of mortgage that is guaranteed by the United States Department of Agriculture (USDA) and is designed to help low- to moderate-income families in rural areas become homeowners. USDA loans offer competitive interest rates, no down payment requirements, and low mortgage insurance premiums, making them an affordable option for those who qualify. USDA loans can be used to purchase or refinance a primary residence in eligible rural areas, which are determined by the USDA.