Loan types
Conventional, FHA, VA, and USDA Loan Comparison
Which loan actually fits your situation?
⚠️ Compare with Official Sources: These summaries are for informational comparison only. Always verify loan terms, requirements, and eligibility with your lender and the official government program websites. Loan terms, rates, and requirements change frequently.
Each loan type offers different trade-offs for down payment, mortgage insurance, and interest rate. Use our mortgage calculator to compare monthly payments across all four loan types — plug in your details and see the full amortization schedule for each.
Conventional Home Loans
Not backed by a government agency. The most common loan type for buyers with solid credit and some savings.
Typical terms
- As little as 3% down, but PMI applies below 20% equity
- PMI cancels automatically once you reach 20% equity and your interest rate is competitive
- Best interest rates go to higher credit scores
Good for
- Buyers who can put down 5% or more and want PMI to eventually disappear
- Anyone looking for lower total interest over the life of the loan
FHA Home Loans
Government-insured federal housing loans with looser credit requirements. Popular with first-time home buyers.
Typical terms
- Down payments as low as 3.5%, resulting in a lower initial monthly payment
- Mortgage insurance premium (MIP) usually lasts the full life of the loan
- More forgiving of lower credit scores; competitive interest rates available
Good for
- First-time home buyers with limited savings for down payment
- Borrowers rebuilding credit who still want reasonable monthly payment options
VA Home Loans for Veterans
Backed by the Department of Veterans Affairs. For eligible veterans, service members, and some spouses. Zero down payment required and zero monthly mortgage insurance.
Typical terms
- 0% down payment available, maximizing monthly payment affordability
- One-time funding fee financed into the loan (can reduce interest rate impact)
- No monthly PMI or MIP — keeping your monthly payment lower than conventional or FHA loans
Good for
- Eligible military borrowers seeking to minimize down payment and reduce monthly payment burden
USDA Rural Home Loans
Backed by the U.S. Department of Agriculture. For eligible rural and suburban properties. Zero down payment, making homeownership affordable.
Typical terms
- 0% down payment available, minimizing upfront costs and initial monthly payment burden
- Upfront guarantee fee financed into the loan with competitive interest rates
- Small annual fee charged monthly (similar to PMI), but generally lower than conventional PMI
Good for
- Buyers in eligible rural or suburban areas seeking affordable monthly payments and minimal upfront costs
Not sure yet?
Start with Conventional on the calculator and compare — switching loan types takes one click.
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Official Program Resources
Disclaimer: This information is for comparison and educational purposes only. Loan terms, rates, requirements, and eligibility rules change frequently. Always contact a lender directly and review the official government program pages before applying. SmartMortgageCalc is not a lender and does not guarantee loan availability or rates.