Quick answerFHA loans allow 3.5% down with a 580+ credit score but carry upfront and annual mortgage insurance; VA loans usually need no down payment and no monthly mortgage insurance for eligible veterans; USDA guaranteed loans need no down payment in eligible rural areas for households up to 115% of area median income; conventional loans can start at 3% down with private mortgage insurance you can cancel later. Compare official Loan Estimates from at least three lenders on the same day.
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Loan types at a glance (2026)

FHA VA USDA Guaranteed Conventional
Minimum down payment 3.5% (580+ score); 10% (500–579) 0% for eligible borrowers 0% 3% (some programs); often 5%+
Who qualifies Anyone meeting standards Veterans, servicemembers, some surviving spouses Up to 115% of AMI; eligible rural area Anyone meeting standards
Mortgage insurance 1.75% upfront + about 0.55% annually for most loans None monthly; one-time funding fee (2.15% first use, 3.3% subsequent, lower with down payment; waived for many disabled veterans) 1% upfront guarantee fee + 0.35% annually Private MI if under 20% down; cancelable
2026 limit (one unit) $541,287–$1,249,125 by county No limit with full entitlement (lender limits apply) Based on ability to repay $832,750 baseline (higher in high-cost areas)
Property Primary residence; FHA appraisal standards Primary residence; VA minimum property requirements Primary residence in eligible area Primary, second home, or investment

Other options:

  • USDA Section 502 Direct loans for low-income rural buyers with payment assistance. See rural housing help.
  • Section 184 for Native American borrowers. See Native American housing.
  • State housing finance agency (HFA) loans: below-market rates and down payment assistance for first-time and moderate-income buyers.
  • FHA 203(k) and Fannie Mae HomeStyle for buying and renovating. See home improvement financing.
  • Community lenders and CDFIs with flexible underwriting.

What “government-backed” means

FHA, VA, and USDA mostly insure or guarantee loans made by private lenders. The lender sets its own rate, fees, and extra requirements within program rules. Two lenders can offer very different terms on the same program—so shopping matters.

How to compare offers

  1. Get Loan Estimates from at least three lenders on the same day for the same loan type, amount, and lock period.
  2. Compare page 1: interest rate, monthly principal and interest, mortgage insurance, and estimated total monthly payment.
  3. Compare page 2: origination charges, points, lender credits, and cash to close.
  4. Compare page 3: APR and “In 5 Years” total cost.
  5. Ask about rate locks and what happens if closing is delayed.
  6. Check for prepayment penalties and adjustable-rate features.

Rate shopping within about a 45-day window typically counts as a single inquiry for most credit scoring models.

Key numbers lenders look at

  • Credit score: affects eligibility and price.
  • Debt-to-income ratio (DTI): total monthly debts (including the new housing payment) divided by gross monthly income. Many programs aim for 43% or lower, with exceptions.
  • Down payment and reserves: savings remaining after closing.
  • Employment and income stability: usually two years of history.

Mistakes to avoid

  • Shopping for homes before understanding your full monthly payment, including taxes, insurance, HOA dues, and mortgage insurance
  • Opening new credit or changing jobs during the loan process
  • Accepting the first offer without comparing
  • Ignoring the cost of mortgage insurance over time
  • Signing up for down payment assistance without understanding repayment terms
  • Paying for “guaranteed approval” or credit repair services that promise impossible results

Get neutral help

A HUD-approved housing counselor can review your budget, credit, and offers for free or low cost, and many down payment programs require homebuyer education. See housing counseling.

Frequently asked questions

What credit score do I need for an FHA loan?

FHA allows 3.5% down with a credit score of 580 or higher and 10% down with scores from 500 to 579. Many lenders set higher minimums (“overlays”), so shop around.

Can I remove FHA mortgage insurance?

For FHA loans with less than 10% down, annual mortgage insurance generally lasts for the life of the loan; with 10% or more down, it lasts 11 years. Many borrowers later refinance into a conventional loan to remove it. Conventional private mortgage insurance can typically be canceled at 20% equity and ends automatically at 22% based on the original value.

What are the 2026 loan limits?

The 2026 conforming loan limit for one-unit homes is $832,750 in most areas. FHA limits range from a floor of $541,287 to a ceiling of $1,249,125 for one-unit homes in most of the country, depending on the county.

Is a VA loan really zero down?

For eligible borrowers with full entitlement, yes—no down payment is required by VA, though the lender must approve you and the home must appraise. Most borrowers pay a one-time funding fee (2.15% for first use with less than 5% down), which is waived for veterans receiving VA disability compensation and some others.

Sources and verification

Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.

  1. Your home loan toolkitConsumer Financial Protection Bureau
  2. FHA announces 2026 loan limitsU.S. Department of Housing and Urban Development
  3. Conforming loan limit values for 2026Federal Housing Finance Agency
  4. VA funding fee and loan closing costsU.S. Department of Veterans Affairs
  5. Single Family Housing Guaranteed Loan ProgramUSDA Rural Development

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Published by Housing Assistance Info

Independent guidance based on the sources listed above. Read our sourcing, automated-tool, and correction policies.