Most home loans come from one of four programs. Each has its own trade-offs on down payment, credit and insurance.
The program you borrow through shapes your down payment, your credit requirements and whether you’ll pay mortgage insurance. Here’s how the four main options line up.
| Program | Minimum down payment | Mortgage insurance | Who it’s for |
|---|---|---|---|
| Conventional | 3% to 5% for many buyers | Private mortgage insurance below 20% down, removable later | Borrowers with solid credit |
| FHA | 3.5% with a 580+ score | Upfront and annual premiums | Lower scores or smaller down payments |
| VA | Usually none | None, but most pay a funding fee | Eligible service members and veterans |
| USDA | Usually none | Upfront and annual fees | Eligible rural and suburban areas, income limits apply |
Conventional loans
These aren’t backed by the government. Most follow Fannie Mae and Freddie Mac rules, which makes them “conforming.” In 2026, the baseline conforming limit for a one-unit home is $832,750, with higher limits in expensive areas. A loan above the limit is a jumbo loan.
The big advantage: mortgage insurance can be removed once you build enough equity, as explained in our guide to down payments and PMI.
FHA loans
Insured by the Federal Housing Administration, FHA loans accept lower credit scores: 3.5% down with a score of 580 or more, or 10% down with a score between 500 and 579. The catch is mortgage insurance, which often stays for the life of the loan unless you refinance.
VA loans
Guaranteed by the Department of Veterans Affairs, VA loans usually need no down payment and have no monthly mortgage insurance. Most borrowers pay a one-time funding fee, which can be rolled into the loan; some, including many veterans with service-connected disabilities, are exempt.
USDA loans
Backed by the Department of Agriculture, these loans serve eligible rural and some suburban areas, usually with no down payment. Household income must fall under the area’s limit.
How to decide
Start with what you qualify for, then compare the full cost, including insurance and fees, rather than the rate alone. A lender can quote several programs side by side once you’re pre-approved.
The short version
- Conventional loans can require as little as 3% down; FHA loans 3.5% with a 580 credit score.
- VA and USDA loans often need no down payment for eligible borrowers and areas.
- In 2026, the baseline conforming loan limit for a one-unit home is $832,750 in most areas.
Readers also ask
Do FHA loans always have mortgage insurance?
Yes. There’s an upfront premium and an annual premium, which often lasts for the life of the loan if you put down less than 10%.
Who qualifies for a VA loan?
Eligible service members, veterans and some surviving spouses. You’ll need a Certificate of Eligibility, which lenders can usually request for you.
What’s a jumbo loan?
A loan above the conforming limit for its county. Jumbo loans usually have stricter credit and down payment rules.
This guide is general information about U.S. mortgages, not financial, tax or legal advice. Loan terms depend on the lender and on your credit, income and property, so confirm the details with your lender, and see consumerfinance.gov for official guidance.
