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Mortgage Loan Types

The loan you choose shapes your down payment, mortgage insurance, and monthly cost. Compare the major loan types and estimate a payment for each.

FHA Loan

FHA loans let you buy with as little as 3.5% down and more flexible credit, in exchange for mortgage insurance premiums (MIP) — an upfront fee plus an annual premium. They're popular with first-time buyers. Use the calculator to estimate your FHA payment.

VA Loan

VA loans, for eligible veterans and service members, offer 0% down, no monthly mortgage insurance, and competitive rates — backed by the Department of Veterans Affairs. The main cost is a one-time VA funding fee. Estimate your VA payment below.

USDA Loan

USDA loans offer 0% down for buyers in eligible rural and many suburban areas who meet income limits. In place of PMI, they charge an upfront and annual guarantee fee. They're a strong option for affordable homeownership outside major metros.

Conventional Loan

A conventional loan is the standard mortgage not backed by a government program. With 20% down you avoid PMI entirely; with less, you pay PMI until you reach 20% equity, at which point it cancels. It's the most common loan for buyers with solid credit.

Jumbo Loan

A jumbo loan exceeds the conforming loan limit (about $806,500 in most areas for 2026) and finances higher-priced homes. Jumbo loans typically require stronger credit, larger down payments, and more reserves, but rates are often competitive. Estimate a jumbo payment below.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage (ARM) starts with a lower fixed rate for an intro period — 5, 7, or 10 years — then adjusts periodically with the market. ARMs can save money if you'll move or refinance before the adjustment, but carry the risk of higher payments later.

Last updated: June 1, 2026Reviewed by: Abodemic Editorial StandardsHow we calculate this →

Sources: HUD (FHA); VA Home Loans.

Estimates for educational purposes only — not a loan offer, financial advice, or a commitment to lend. Actual rates, payments, and terms vary by lender and creditworthiness.