MORTGAGE LOAN OPTIONS

Conventional Loan

Typically for borrowers with strong credit histories and stable income.

3% to 20% of the home’s price

620

Private Mortgage Insurance (PMI) if <20% down payment

FHA Loan

Borrowers with lower credit scores and smaller down payments; first-time homebuyers.

3.5% of the home’s price

580

FHA Mortgage Insurance Premium (MIP)

VA Loan

Active-duty military members, veterans, and certain surviving spouses.

0% (no down payment required)

No minimum, but lenders usually require 620-640

No mortgage insurance required

USDA Loan

Low to moderate income borrowers in eligible rural areas.

0% (no down payment required)

640

USDA Guarantee Fee (one-time upfront and annual fee)

Jumbo Loan

Borrowers seeking a loan amount that exceeds conforming loan limits; usually requires higher credit scores and financial stability.

Typically 10% to 20%

680 to 720

Typically no mortgage insurance, but may vary by lender

AdjustableRate Mortgage (ARM)

Qualified borrowers seeking lower initial interest rates; typically adjusted periodically.

5% to 20%

620

PMI if <20% down payment; otherwise depends on loan terms

Fixed-Rate Mortgage

Borrowers seeking stable monthly payments; available in various terms (e.g., 15, 30years).

3% to 20%

620

PMI if <20% down payment; otherwise depends on loan terms