FHA vs Conventional vs VA vs USDA

Who each loan is built for

• FHA Flexible credit and lower down payment with mortgage insurance.
• Conventional Stronger credit and more options to remove PMI.
• VA Eligible veterans and service members with 0% down payment and no PMI.
• USDA Eligible rural areas with income limits and 0% down payment.

Down payment and insurance at a glance

• FHA As low as 3.5% down, upfront and monthly mortgage insurance.
• Conventional As low as 3% down, PMI can be removed later.
• VA Often 0% down with a funding fee, no monthly mortgage insurance.
• USDA 0% down with a guarantee fee and area eligibility rules.

How to choose

1. List your credit score, debts, and target price.
2. Check eligibility for VA or USDA first if you qualify.
3. Compare total monthly and cash to close across 2 or 3 options.

Keep learning

• Which loan type is best for me
• PMI explained and how to remove it
• Closing costs for buyers