Conventional, FHA, VA, and USDA Home Loans Compared
Compare the major home-loan families, including down payment, mortgage insurance or guarantee fees, occupancy, property, income, service, and lender requirements.
Checked against official sources on 2026-07-15
Conventional loans
Conventional means the loan is not insured or guaranteed by FHA, VA, or USDA. Conforming conventional loans meet Fannie Mae or Freddie Mac purchase limits and guidelines; portfolio loans stay with a lender or investor under its own rules. Eligible programs such as HomeReady and Home Possible can permit down payments as low as 3%, while pricing and mortgage insurance depend on the complete file.
FHA-insured loans
FHA insurance protects approved lenders against certain losses and can support lower down payments or more flexible risk profiles than some conventional options. Borrowers pay FHA mortgage-insurance premiums, and the property must meet FHA requirements. Lender overlays can be stricter than FHA's baseline, so eligibility is not determined by one credit-score claim on a marketing page.
VA-guaranteed loans
Eligible borrowers obtain a Certificate of Eligibility and apply through a private lender. VA does not require a down payment or monthly private mortgage insurance, although a lender may require a down payment in some circumstances. A one-time VA funding fee usually applies unless the borrower qualifies for an exemption. The home generally must be for the borrower's occupancy and meet VA property requirements.
USDA rural housing loans
USDA's Guaranteed Loan Program can provide 100% financing through approved lenders for eligible primary residences in eligible rural areas, subject to household-income and other program rules. USDA also offers a Direct Loan Program for qualifying low- and very-low-income applicants. Property and income eligibility must be checked using current USDA tools.
Compare the full package
Ask for side-by-side Loan Estimates using the same price, down payment, term, and rate-lock assumptions. Compare cash to close, total monthly payment, mortgage insurance or program fees, seller-credit limits, property standards, appraisal process, time to close, and how insurance can or cannot end later.
Common questions
- Is FHA only for first-time buyers?
- No. FHA eligibility is not limited to first-time buyers, although occupancy, underwriting, property, and program rules still apply.
- Is a zero-down loan the same as zero cash to close?
- No. Closing costs, prepaid taxes and insurance, reserves, deposits, and program fees can still require cash unless credits, assistance, or permitted financing covers them.
Education, not a loan decision
This guide is general education. It is not a personalized rate quote, approval, legal opinion, tax advice, or lending recommendation. Confirm current program terms and your own eligibility with licensed professionals. You may use any lender.