3 Most Common Loan Types

1.

Conventional Loans

Conventional mortgages are best suited for borrowers with 5% or more in down payment and good credit. The guidelines are more restrictive than other loan types, but that generally correlates to better interest rates.
2.

FHA Loans

These mortgages allow for a 3.5% down payment and the guidelines are generally the least restrictive. FHA loans also continue to be the most common loan type paired with down payment assistance programs.
3.

VA Loans

VA home loans provide the best financing available for eligible veterans. Depending on the veteran’s eligibility there is no required down payment and there is no monthly mortgage insurance.