Introduction
Choosing a mortgage can feel overwhelming. With FHA, VA, Conventional, USDA, jumbo loans, and the choice between fixed and adjustable rates, where do you start? Let’s look at mortgage types compared side by side so you can make an informed decision.
Comparison Table of Mortgage Types
Loan Type | Best For | Down Payment | Credit Score | Key Benefits | Key Drawbacks |
Conv. | Buyers with good credit | 3%–20% | 620+ | Flexible terms, competitive rates | Stricter requirements than FHA |
FHA | First-time buyers, lower credit | 3.5%+ | 580+ | Lower credit and down payment requirements | Mortgage insurance required long-term |
VA | Veterans & active military | 0% | Flexible | No down payment, no PMI | Only for veterans/service members |
USDA | Rural property buyers | 0% | 640+ | No down payment, low rates | Restricted to eligible rural areas |
Jumbo | High-value homes | 10%–20%+ | 700+ | Enables financing of expensive properties | Higher interest rates, stricter criteria |
Fixed vs Adjustable Mortgages
- Fixed Rate: Stable payments for the life of the loan — great for long-term homeowners.
- Adjustable Rate (ARM): Lower initial rates, but payments can increase. If you already own, these differences impact refinancing decisions.
Which Loan Is Best for You?
- FHA loans are often paired with lower down payment options.
- Conventional loans are strong if you’re financially stable and already pre-approved vs prequalified.
- VA and USDA loans are niche but powerful for those who qualify.
Final Thoughts
The right loan depends on your credit, savings, and long-term plans. Seeing mortgage types compared helps you choose the right path. Next, review loan pre-approval vs prequalification, explore down payment options, and check if refinancing could benefit you later.
Your questions, answered
What are the most common types of mortgages?
Conventional, FHA, VA, USDA, and jumbo loans.
Which mortgage is best for first-time buyers?
FHA loans are often popular for lower down payments, but conventional loans may save more long-term.
Is a fixed or adjustable mortgage better?
Fixed loans offer stability, while adjustable loans start lower but can increase over time.
