Rates & Loans
What is the difference between FHA, VA, USDA, and conventional loans?
The short answer
Conventional loans are not government-insured and usually need stronger credit but allow down payments as low as 3%. FHA loans, backed by HUD, accept lower credit scores and down payments from 3.5% but require mortgage insurance. VA loans, for eligible veterans and service members, can offer 0% down with no monthly mortgage insurance. USDA loans support eligible rural buyers with 0% down. The right fit depends on your credit, savings, service history, and where you are buying.
Key points
- Conventional: no government backing; as low as 3% down with good credit.
- FHA: lower credit thresholds; 3.5% down; mortgage insurance required.
- VA: eligible veterans/service members; often 0% down, no monthly MI.
- USDA: eligible rural areas; 0% down.
How to choose
Loan type affects your rate, insurance, and total cost, so compare full Loan Estimates across the programs you qualify for rather than choosing on down payment alone.
Put this to work
Sources
Every claim above traces to a public government source.
- ViewT1FHA loans — buying a home
U.S. Department of Housing and Urban Development · Government / primary · 2024
- ViewT1VA-backed home loans
U.S. Department of Veterans Affairs · Government / primary · 2024
- ViewT1Single Family Housing Guaranteed Loan Program
U.S. Department of Agriculture, Rural Development · Government / primary · 2024