Home purchase loan types
The right loan depends on your credit, savings, military service and where you're buying. Compare the main options below.
| Loan | Min. down | Min. credit | Best for |
|---|---|---|---|
| Conventional Loan | 3% | 620 | Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity. |
| FHA Loan | 3.5% | 580 | Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules. |
| VA Loan | 0% | No VA minimum (lenders often 580–620) | For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance. |
| USDA Loan | 0% | Typically 640 for automated approval | 0% down for moderate-income buyers in eligible rural and suburban areas. |
| Jumbo Loan | 10%–20% | 700+ | For loan amounts above the conforming limit; usually 10–20% down and 700+ credit. |
| First-Time Home Buyer Loans | 0%–3.5% | 580–620 | Low-down-payment loans plus state assistance programs designed for first-time buyers. |
| Down Payment Assistance | Varies | Usually 620–640 | Grants and forgivable or deferred loans that cover part of your down payment and closing costs. |
| Mortgage Pre-Approval | — | — | A lender's written conditional commitment showing sellers you can finance the purchase. |
| Pre-Qualification vs Pre-Approval | — | — | Pre-qualification is a quick estimate; pre-approval is verified and carries more weight with sellers. |
| Self-Employed Mortgage | 3%–10% | 620–660 | Options for business owners and 1099 earners, including tax-return and bank-statement loans. |
| DSCR Purchase Loan | 20%–25% | 660–700 | Investment-property loans qualified on the rental income of the property, not personal income. |
| New Construction Home Loans | 0%–20% (by loan program) | 580–680 (by loan program) | Financing for a newly built home from a builder, or for building your own with a construction-to-permanent loan. |
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Get My MatchesFigures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.