Mortgages & Financing

Conventional, FHA, VA, or USDA: which loan fits me best?

By Steve Lockhart

The short answer

Conventional loans are the flexible standard: strong credit usually shines, down payments can start around 3 percent, and the mortgage insurance drops as your equity reaches about 20 percent.

Full answer

Conventional loans are the flexible standard: strong credit usually shines, down payments can start around 3 percent, and the mortgage insurance drops as your equity reaches about 20 percent. FHA is the access loan, with 3.5 percent down and credit scores into the 580s, plus a mortgage insurance premium that is harder to remove. VA is for eligible military buyers and delivers a rare set of benefits: no down payment in most cases and no monthly mortgage insurance, with a funding fee that varies by use. USDA offers true zero-down financing in eligible rural parts of Nevada, with income limits. None is universally best. The right one pairs your credit, savings, income, and the county you buy in. We run the real numbers on your file against each program before we pick, and we encourage you to trust lender math over program marketing.

Go a little deeper

Frequently asked

Questions people often follow up on

Which loan lets me put the least money down?

Eligible VA and USDA buyers can close with no down payment. Outside those, FHA typically runs 3.5 percent and conventional starts around 3 percent on some programs. Down payment assistance can reduce it further. The smallest down is not automatically the best loan, because fees can change the monthly reality.

Why is FHA sometimes easier for lower scores?

FHA underwriting accepts lower scores and thinner files than most conventional programs. The trade is the mortgage insurance premium, which is harder to remove. We run the five-year cost on your exact numbers, because a lower credit bar can come with a higher monthly bill.

Can I use a VA loan more than once?

Yes, the benefit stays with you. Reuse depends on how your entitlement was used and restored, which the certificate of eligibility shows. If part of the benefit remains tied to another home, a VA lender explains exactly what you have left before we plan.

The Lockhart Method

Your Home | My Strategy | Proven Results

My strategy: run a true side by side on your file, not the script that ships with the ad. Credit, savings, purchase price, and comfort, all in one grid, and the program that actually wins is the one we both understand.

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