Step 4: Choose the Right Loan Program
Compare programs on down payment, credit, mortgage insurance and total cost to find the one that fits you and the home.
The right loan program depends on your credit, savings, the home's price and how you'll use it. Unbeatable shows every program you qualify for on the same home, so you can compare the real payment and cash to close side by side.
The main programs
| Conventional | FHA | VA | USDA | Jumbo | |
|---|---|---|---|---|---|
| Minimum down | 3%–5% | 3.5% | 0% | 0% | ~10%–20% |
| Typical min. score | 620 | 580 | Lender-set | ~640 | 680–700+ |
| Mortgage insurance | PMI under 20% down, removable | Upfront 1.75% + annual MIP | None (funding fee instead) | 1% upfront + 0.35% annual | Usually none |
| Who it fits | Good credit | Building credit | Veterans, service members | Rural areas, income limits | Higher prices |
- A conventional loan follows Fannie Mae and Freddie Mac rules and must fit under the conforming loan limit.
- An FHA loan is insured by the Federal Housing Administration. It's easier to qualify for, and carries a mortgage insurance premium.
- A VA loan is guaranteed by the Department of Veterans Affairs for eligible veterans, service members and some surviving spouses.
- A USDA loan is backed by the Department of Agriculture for eligible areas and incomes.
- A jumbo loan is any loan above the conforming limit.
- Investor loans such as a DSCR loan qualify from the property's rent.
Fixed or adjustable?
A fixed-rate mortgage keeps the same rate for the whole loan term, usually 30 or 15 years. An adjustable-rate mortgage starts with a fixed period (5, 7 or 10 years), then adjusts. ARMs can make sense if you expect to sell or refinance before the fixed period ends.
Compare total cost, not just the rate
A lower rate with high upfront fees or long-lasting mortgage insurance can cost more than a slightly higher rate. Compare the APR, the monthly payment and the cash to close for the same home.
Next: get pre-approved.
Your next move, by loan program
- Conventional: Best for credit of 680+, especially with 5% to 20% down. Mortgage insurance drops off once you reach 20% equity. Compare conventional
- FHA: Best for credit under about 680 or higher debt ratios. Mortgage insurance stays for the life of the loan unless you put 10% or more down. Compare FHA
- VA: Usually the lowest-cost option if you're eligible: no down payment, no monthly mortgage insurance, competitive rates. Compare VA
- USDA: Zero down in eligible rural and suburban areas for households under the income limit, with a low annual fee. Compare USDA
- Jumbo: For loan amounts above the conforming limit ($832,750 for one unit in most counties in 2026, higher in high-cost areas). Compare jumbo
- Investor: DSCR for rentals, fix and flip for renovations, bridge for short-term needs. Investor products are on the Investor plan. See investor plans