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Hole 05 · Front Nine — Get Ready

Loan Types

Conventional, FHA, VA, and jumbo loans each fit a different buyer situation. This hole breaks down minimum down payments, mortgage insurance rules, and who each loan type actually favors, so you can walk into a lender conversation already knowing which door to ask about first.

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Written by 18 Holes to Home Team · Education Team · 18 Holes to Home | Educational content

Primary sources reviewed July 15, 2026

Homebuying fundamentals are taught for learners nationwide. Sections labeled Washington detail use Washington law, programs, practices, or Pacific Northwest examples—check the official resources for your state before acting.

Conventional loans

Conventional loans are not insured or guaranteed by FHA, VA, or USDA, and some qualified buyers can put as little as 3% down. Private mortgage insurance may apply with a smaller down payment. Federal cancellation rules can let eligible borrowers request PMI cancellation at 80% of the home's original value and generally require automatic termination at 78% on the scheduled amortization date when the loan is current.

  • Down payments as low as 3% for qualified buyers.
  • PMI cancellation and automatic termination use federal eligibility and payment-history rules.
  • Often the strongest fit for stronger credit and stable income.

FHA loans

FHA-insured loans can allow down payments as low as 3.5% and may accommodate lower credit scores than many conventional loans, but the lender still applies its own underwriting requirements. FHA mortgage insurance is required, and how long annual premiums continue depends on the original loan-to-value ratio, term, and applicable FHA rules; it is not one universal lifetime rule.

  • Down payments can be as low as 3.5% for eligible borrowers.
  • Mortgage-insurance duration depends on the original loan terms and FHA rules.
  • A common fit for buyers rebuilding credit or light on cash.

VA and jumbo loans

VA loans, backed by the Department of Veterans Affairs, are built for eligible veterans and service members and often require no down payment and no monthly mortgage insurance. Jumbo loans sit above the conforming loan limit and typically demand stronger credit, larger reserves, and bigger down payments since no government agency backs them.

  • VA — for eligible veterans and service members, often no down payment.
  • Jumbo — for loan amounts above the conforming limit.
  • Jumbo lenders set their own, usually stricter, qualifying rules.

Picking the right door first

Match the loan type to your real situation before you fall for a listing: your down payment cash on hand, your credit band, veteran status, and purchase price all point toward a different door. Ask a lender which type fits before you assume conventional is the only option on the table.

  • Down payment cash on hand narrows the field fast.
  • Veteran or service member status opens the VA door.
  • Purchase price above the conforming limit points toward jumbo.

Mastery check

Prove it out before you move on.

Caddie

Before you play through — quick read of the green:

3 quick questions. Get all but one right and this hole is marked played. Unlimited retries — there's no penalty for missing one.

Question 1 of 3

Which loan type usually has the smallest down payment and the most forgiving credit requirement?

Question 2 of 3

What determines how long FHA annual mortgage insurance continues?

Question 3 of 3

Who is a VA loan generally built for?

Still stuck? Ask the Caddie.

Hole 4: Down-Payment-Assistance ProgramsHole 6: Pre-Approval