• Conventional - Best for borrowers with good credit scores.

• Jumbo - Best for borrowers with good credit looking to buy a more expensive home.

• Government-backed loan - Best for borrowers with lower credit scores and minimal cash for a down payment. These include:

  • FHA

  • VA

  • USDA

• Fixed-rate mortgage -Best for borrowers planning to stay in the home for a long time.

• Adjustable-rate mortgage - Best for borrowers planning to move or refinance within the first few years of the loan term.

• Conventional Loans: Require as little as 3% for first-time homebuyers or low-to-moderate-income borrowers through programs like Fannie Mae HomeReady and Freddie Mac Home Possible. Other conventional loans typically start at 5%.

• FHA Loans: Minimum is 3.5% for borrowers with a credit score of 580 or higher. If your credit score is between 500 and 579, a 10% down payment is required.

• VA Loans: Typically 0% down for eligible veterans, active-duty service members, and surviving spouses.

• USDA Loans: 0% down for qualified low-to-moderate-income buyers in eligible rural and suburban areas.

• Jumbo Loans: Generally require 10% to 20%, though some lenders may require up to 40% depending on the loan size and borrower's credit. 

• Private Mortgage Insurance (PMI): On conventional loans, putting down less than 20% usually requires paying monthly PMI until you reach 20% equity.

• Mortgage Insurance Premium (MIP): FHA loans require both an upfront and annual MIP regardless of the down payment amount, though it may be removable after 11 years if you put at least 10% down.

• Loan Limits: FHA and conventional conforming loans are subject to regional loan limits that are updated annually. 

• FHA Loans: Designed for lower credit scores.

  • 580+: Qualifies for the minimum 3.5% down payment.

  • 500–579: Requires a 10% down payment.

• Conventional Loans: Historically required a minimum of 620.

  • Note for 2026: As of late 2025, Fannie Mae and Freddie Mac have removed the "hard" 620 cutoff for many borrowers, opting instead for a holistic risk assessment through automated systems like Desktop Underwriter (DU).

• VA Loans: No official government-set minimum score, but most private lenders require at least 580 to 620.

• USDA Loans: No official government-set minimum, though lenders typically benchmark at 640.

• Jumbo Loans: Because these exceed federal limits and are not government-backed, they typically require a higher score of 700 or above. 

A high credit score alone does not guarantee approval. Lenders also review: 

• Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI below 43%, though some programs allow higher.

• Down Payment Amount: Larger down payments can sometimes offset a lower credit score.

• Income Stability: Lenders typically want to see at least two years of consistent employment in the same field.

• Nontraditional Credit: For those with "thin" credit files, some 2026 programs allow proof of on-time rent, utility, and phone payments as supporting data.