First-time buyers often assume there's one mortgage product waiting for them. In reality you'll likely weigh at least three, and the right choice depends on your credit, your savings and your service history.
Conventional PMI drops off at 20% equity; FHA mortgage insurance stays for the life of the loan in most cases.
A fit for buyers with a credit score of 620+ and at least 3% down. There's no upfront insurance premium, and PMI drops off once you reach 20% equity. Flexible terms make this the most common path for buyers with solid credit.
Designed for buyers with lower credit scores or smaller savings, an FHA loan allows scores as low as 580 with 3.5% down. It comes with both an upfront mortgage insurance premium and an ongoing one, which in most cases stays for the life of the loan.
Available to eligible veterans, active military and some surviving spouses. A VA loan needs no down payment, carries no PMI and comes with competitive rates. A one-time VA funding fee applies, though it can often be rolled into the loan.
The right fit usually reveals itself once you put your numbers side by side.
A good loan officer can run the comparison in minutes and show you the total cost over the time you plan to stay in the home, which matters more than the headline rate.
You don't need 20% down to buy a home. Compare minimum down payments for FHA, VA, USDA, and conventional loans to find your path in.
Private mortgage insurance can add $100 to $300 to your monthly payment. Here are three ways to cancel PMI and put that money back in your budget.
Closing costs run 2–5% of your loan amount. See the full breakdown of fees, plus four proven ways to lower what you pay at the closing table.
A loan officer can price conventional, FHA and, if you're eligible, VA side by side over the years you plan to stay. Pre-qualifying will not affect your credit score.
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