Find your best mortgage loan
When buying a home, the big question is, “Which home loan is best for me?” The truth is, there’s no universal answer—your ideal mortgage loan depends on your finances, goals, and even the real estate market in your area.
Finding the best home loan options means securing a monthly mortgage payment that fits your budget—without unnecessary costs. From fixed-rate mortgages to FHA loans, this guide will help you determine which home loan is best for you.
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Compare types of mortgage loans
Finding the best home loan options starts with knowing the different types of mortgage loans out there. If you have strong credit and at least 5-10% down, a conventional loan is a solid choice. Need a low down payment? FHA loans, VA loans, and USDA loans offer flexible terms. Buying a high-priced home? You might need a jumbo loan.
No matter your situation, taking time to explore mortgage options will help you figure out what’s the best loan for buying a house.
Check your mortgage options. Start hereExact loan requirements may vary by lender. The table shows typical requirements for sample purposes only.
| Min. Down payment | Min. Credit Score | Upfront Loan Fees | Mortgage Insurance | Features | |
| Conventional Home Loan | 3-5% | 620 | None | Required with less than 20% down | Most common type of home loan |
| FHA Home Loan | 3.5% | 580 | 1.75% upfront mortgage insurance premium (MIP) | 0.55% of existing loan balance per year | Intended for lower-credit or lower-income buyers |
| VA Home Loan | 0% | Often 580-620 | 1.4% to 3.6% VA funding fee | None | Eligible military service history required |
| USDA Home Loan | 0% | Often 640 | 1% upfront mortgage insurance (MIP) | 0.35% of the existing loan balance per year | For low- and middle-income buyers in "rural" areas |
| Jumbo Home Loan | Often 10-20% | Often 680 or higher | None | Required with less than 20% down | For mortgages above conforming loan limits |
What is the best home loan option for you? How to compare
The best home loan options are designed to fit different borrowers, but the right choice depends on your finances, credit score, homeownership goals, and whether you’re buying or refinancing.
Find the best home loan for you. Start hereBefore choosing a mortgage loan, ask yourself:
- Which loan offers the lowest monthly payment?
- What has the smallest down payment requirements?
- Which costs less over the life of the loan?
- What suits my credit history?
- How does my income affect eligibility?
- What’s my home price range?
- How long will I stay in this primary residence?
- Am I refinancing to lower my interest rate or access home equity?
Your answers will help you determine what is the best type of home loan to get based on your needs.
Best home loan options: Find the right mortgage for you
If you’re asking, “What home loan is right for me?” You’re not alone—choosing the best mortgage depends on factors like your down payment, income, and long-term plans. Explore the best home loan options below to see which one fits your needs.
1. Conventional loans
Conventional loans are the most common type of mortgage loan, offering competitive interest rates, flexible loan terms, and multiple down payment options. Unlike government-backed loans, conventional mortgages are funded by private lenders and conform to Fannie Mae and Freddie Mac guidelines. They are available through most banks, credit unions, and mortgage lenders nationwide.
Check your conventional loan eligibility. Start hereKey features:
- Minimum credit score of 620 (higher scores get better rates)
- Down payments as low as 3%
- Loan terms from 10 to 30 years available
- Available for primary residences, second homes, and investment properties
Pros:
- Lower interest rates for strong credit borrowers
- Private mortgage insurance (PMI) can be canceled once you reach 20% home equity
- Fixed and adjustable-rate mortgage options available
Cons:
- PMI required for down payments under 20%
- Higher interest rates for lower credit scores
- Not government-backed, meaning stricter credit and income requirements
- Debt-to-income ratio up to 43% allowed, but under 36% is ideal
A conventional mortgage may be the best loan to buy a house if you have good credit and savings for a down payment.
2. FHA loans
FHA loans are popular among first-time home buyers and those with lower credit scores, thanks to their low down payment requirements and flexible income guidelines. Backed by the Federal Housing Administration, these loans offer lower interest rates but require upfront and monthly mortgage insurance premiums (MIP).
Check your FHA loan eligibility. Start hereKey features:
- Down payment as low as 3.5% (with a 580+ credit score); 10% down required for lower credit scores
- Lenient income and debt-to-income (DTI) requirements (up to 50% DTI ratio)
- Down payment assistance programs and gift funds allowed
- Mortgage insurance required for the life of the loan, unless refinanced into a conventional loan
- Available in 15- and 30-year fixed-rate and adjustable-rate mortgage options
Pros:
- Lower credit score requirements than conventional loans
- Low down payment makes homeownership accessible
- Allows purchase of 1- to 4-unit properties if borrower occupies one
Cons:
- Upfront and monthly mortgage insurance (MIP) required, regardless of down payment
- MIP cannot be removed unless refinanced into a conventional loan
- Lower loan limits compared to conventional loans
- Primary residence only—no vacation homes or investment properties
An FHA mortgage may be the best loan for buying a house if you have low credit or limited savings and need a low down payment option.
3. VA loans
VA loans provide qualifying service members, veterans, and surviving spouses with zero-down home financing backed by the U.S. Department of Veterans Affairs. These loans offer lower mortgage interest rates and no mortgage insurance, which makes them one of the best home loan options for military borrowers.
Check your VA loan eligibility. Start hereKey features:
- No down payment required (100% financing available)
- Lower interest rates than conventional and FHA loans
- Primary residence only—no vacation homes or investment properties
- Available in 15- and 30-year fixed-rate and adjustable-rate mortgage options
Pros:
- No monthly mortgage insurance
- Lenient credit and income requirements
Cons:
- Only available to eligible service members, veterans, and some surviving spouses
- VA funding fee of 1.4% to 3.6% required (can be rolled into the loan)
If you’re still wondering, “What home loan is best for me?”—then a VA loan may be the answer if you qualify based on military service and want a zero down payment option.
4. USDA loans
Backed by the U.S. Department of Agriculture, USDA loans help low- to moderate-income buyers afford homes in rural and select suburban areas. These loans eliminate the down payment requirement and offer lower mortgage insurance costs than other loan programs.
Check your USDA loan eligibility. Start hereKey features:
- No down payment required (100% financing available)
- Below-market mortgage interest rates
- Borrowers must meet household income limits
Pros:
- Lower mortgage insurance rates than FHA loans
- No loan limits, offering flexibility in home prices
Cons:
- Home must be in a USDA-eligible rural or suburban area
- No multiunit properties; only single-family homes allowed
- Available only as a 30-year fixed-rate loan (no ARMs or shorter terms)
If you’re trying to determine which mortgage loan is the best for you, this could be the right choice if you meet income requirements and are buying in a USDA-eligible rural area.
5. Jumbo loans
A jumbo loan is a non-conforming mortgage designed for borrowers purchasing high-priced homes that exceed conforming loan limits set by Fannie Mae and Freddie Mac. These loans allow buyers to finance luxury properties or homes in high-cost real estate markets.
Check your jumbo loan eligibility. Start hereKey features:
- Loan amounts exceed conforming loan limits (varies by location)
- Down payment requirements of 5% to 20% depending on lender
- Jumbo loan rates are competitive, often lower than other loan programs
- Higher credit score required (typically 680+ FICO score)
- Cash reserves may be required to cover several months of payments
Pros:
- Allows financing for high-cost or luxury real estate
- Flexible loan options, including fixed-rate and adjustable-rate mortgages
Cons:
- Larger loan amounts mean higher monthly payments
- Lender underwriting requirements vary, making qualification more complex
A jumbo loan may be the best mortgage loan for you if you’re buying in a high purchase price area and meet credit and income requirements.
FAQ: What’s the best home loan to get?
Find the best home loan option for your needs. Start hereThe best home loan for first-time homebuyers depends on factors like credit score, down payment, and income. FHA loans are popular because they allow low credit scores and require just 3.5% down. Conventional loans with 3% down may be an option if you have a strong credit score. VA and USDA loans offer zero down payment for eligible buyers. Before choosing, consider pre-approval, closing costs, homeowners insurance, and property taxes.
The best mortgage loan for your credit score depends on how high or low it is. FHA loans accept scores as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans usually require 620 or higher, while jumbo loans may require 680+. Borrowers with good credit may qualify for better interest rates and lower origination fees.
A conventional loan is typically the best option for investment properties since FHA, VA, and USDA loans require you to live in the home. Most lenders expect 20-25% down for an investment property loan, and a higher credit score (usually 680+) may be required.
The best refinance loan depends on your goal. A rate-and-term refinance lowers your interest rate or monthly payment, while a cash-out refinance allows homeowners to tap into home equity for expenses. VA, FHA, and conventional refinance options are available, and factors like homeowners insurance and property taxes should be considered.
Ready to find out which mortgage loan is the best?
The best home loan options depend on your unique situation, but you don’t have to figure it out alone. A loan officer or mortgage broker can guide you—but not all mortgage lenders offer every loan type.
For example, if you qualify for a zero-down USDA loan, but your lender doesn’t offer it, they might not mention it. That’s why it’s important to explore mortgage options in advance.
Identify a few that seem right for you, then work with your adviser to compare rates, fees, and long-term costs to determine which home loan is best for you.
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