What’s the Best Type of Mortgage for Me?

Understanding Your Mortgage Options

Choosing the right mortgage doesn’t have to feel confusing. The best loan for you depends on three core factors: your finances, your future plans, and how long you expect to stay in the home.

Below is a simplified breakdown of common loan types and who they typically benefit.

Conventional Loan

Best for: Buyers with strong credit, steady income, and at least 3–5 percent down.Why it works: Lower long-term costs and the ability to remove PMI once you reach 20 percent equity.

FHA Loan

Best for: First-time buyers or those with lower credit or limited savings.Why it works: Flexible guidelines and only 3.5 percent down required.

VA Loan

Best for: Active-duty service members, veterans, and eligible spouses.Why it works: No down payment, no PMI, and highly competitive rates.

USDA Loan

Best for: Rural and suburban buyers who meet income limits.Why it works: Zero down payment and low interest rates.

How to Decide

Ask yourself:

• How long will I live in this home?

• How much do I want to put down?

• Do I want the lowest monthly payment or the lowest upfront cost?

• Is my credit score a strength or a work in progress?

A good lender will walk you through these options in plain language, not jargon.