FHA, VA, USDA or Conventional? Comparing Loan Types

The right loan depends on your credit, savings, location and service history. Here's a simple overview to help you ask lenders the right questions.

At a Glance

• FHA: low down payment and more flexible credit requirements, with mortgage insurance
• VA: for eligible veterans and service members, often no down payment and no monthly mortgage insurance
• USDA: for eligible rural and some suburban areas, often no down payment, with income limits
• Conventional: often best for stronger credit; mortgage insurance can be removed later

Tip

Ask each lender for an official Loan Estimate for the same loan type and compare the total costs, not just the interest rate.