6 Types of Home Loans: Which Mortgage Is Right for You?

Six main types of home loans cover most buyers: conventional, FHA, VA, USDA, adjustable-rate, and jumbo. Each comes with different down payment minimums, credit requirements, and rules about who qualifies and what kind of property it can be used for.Choosing a home loan starts with a buyer's specific situation — their credit score, down payment savings, income, and whether they qualify for a government-backed program through their military service or the location of the home. The home loan options that fit a first-time buyer with limited savings often look very different from what fits a buyer with strong credit and 20% down.The right mortgage type can also change over time. A buyer might start with a low-down-payment option and refinance into a different loan type later, once they've built equity or improved their credit.Conventional mortgages: pros, cons, and qualificationsA conventional loan is the standard type of home loan. According to NAR, a majority of first-time and repeat buyers use conventional loans when homebuying. Conventional loans aren’t backed by a government agency, which means the lender takes on the full risk if a borrower defaults. They often have stricter cred...