Loan Programs

To keep it simple, there are 4 different type of loan programs: FHA, VA, USDA and Conventional. Almost every single person who finances a home today is using one of these 4 loan types. Each of these loan programs have certain rules and guidelines and each have their own strengths and weaknesses. A person may qualify for none or all of these, but most of the time one single loan program will be the best fit for a person for one reason or another. For instance, Johnny may qualify for an FHA, USDA & Conventional Loan but will only attempt to buy a home with USDA financing because he does not have any money available for a down payment. Again, each loan program has certain rules and guidelines. More times than not, a person best fits a certain loan program based solely on credit and/or the minimum down payment allowed.

Below is a very basic summary of each type of loan. Please visit the specific loan pages for more detailed information. 

  • FHA: 3.5% down payment required. Minimum credit score of 580. Allows a higher debt-to-income ratio. 
  • USDA: $0 down payment required. Minimum credit score of 620. More strict on a borrower's debt to income ratio. House must be USDA eligible. 
  • VA: $0 down payment required. Minimum Credit score of 580. Only for VA Eligible borrowers. 
  • Conventional: 3% down payment required. Minimum credit score of 620. Very strict on a borrower's debt to income ratio and overall credit profile. 


To learn more, please visit the specific pages for the different loan types. 

 
 

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