Walk into five different banks and you might hear about five different loans — each presented as "the one." The truth is simpler: the five most common mortgage types each exist for a specific kind of borrower, and once you see them side by side, it's usually obvious which lane is yours.
Here's the full comparison, updated with the 2026 loan limits and rules, followed by a plain-English profile of each loan.
The Comparison Chart
| FHA | VA | Conventional | Jumbo | USDA | |
|---|---|---|---|---|---|
| Best for | Lower scores or smaller savings | Military families — the best deal in lending | Solid credit — the flexible default | Homes priced above conforming limits | 0% down outside the city |
| Minimum credit score | 580 (500–579 with 10% down) | No official minimum; lenders often want 580–620 | 620; better pricing as scores rise | Typically 700–720+ | Typically 640; non-traditional credit possible |
| Down payment | 3.5% | 0% | 3–5% (3% first-time programs); 20% avoids PMI | Usually 10–20%+ | 0% |
| 2026 loan limit | $541,287 in most Georgia & Florida counties; higher in high-cost areas | No limit with full entitlement | $832,750 baseline; up to $1,249,125 in high-cost areas | No limit — jumbo IS the loan above conforming | No set limit — capped instead by income rules |
| Debt-to-income | Flexible — can approve up to ~50%+ with strong file | Flexible — uses residual-income test | Up to 45–50% with automated approval | Strict — usually 43% max, deep scrutiny | Similar to FHA, plus household income cap of 115% of area median |
| Mortgage insurance | 1.75% upfront (can be financed) + 0.55%/year paid monthly | None monthly — one-time funding fee 1.25–3.3% (financeable; waived with service-connected disability) | Monthly PMI until 20% equity — cancellable at 80%, automatic at 78%; none with 20% down | Typically none (larger down payments) | 1% upfront + 0.35%/year |
| Bankruptcy wait (Ch. 7) | 2 years | 2 years | 4 years | 4–7 years (varies by lender) | 3 years |
| Foreclosure wait | 3 years | 2 years | 7 years | 7 years | 3 years |
| Short sale wait | 3 years | 2 years | 4 years | 4–7 years | 3 years |
| Occupancy | Primary residence only (1–4 units, live in one) | Primary residence only | Primary, second home, or investment | All occupancy types | Primary residence only |
| Other requirements | Condos need FHA approval (single-unit approvals possible) | Certificate of Eligibility: active military, veterans, surviving spouses | None special | Cash reserves of 6–12 months often required | Home must be in a USDA-eligible area; many Atlanta and Orlando exurbs qualify |
FHA: The Second-Chance Workhorse
FHA exists to make homeownership possible with imperfect credit or a small down payment: 580 score, 3.5% down, and the shortest waiting periods after credit events alongside VA. The cost is mortgage insurance on both ends — upfront and monthly — and with less than 10% down, the monthly portion lasts the life of the loan. The classic play: buy with FHA now, refinance into conventional once your credit and equity grow.
VA: The Best Deal in Lending
Zero down, no monthly mortgage insurance, forgiving credit standards, and — since 2020 — no loan limit for borrowers with full entitlement. If you or your spouse served in the U.S. military, this is almost always the first loan to check. The one-time funding fee is waived entirely for veterans with a service-connected disability.
Conventional: The Flexible Default
The loan most buyers with a 620+ score end up comparing everything else against. First-time buyer programs go as low as 3% down, PMI is temporary and cancellable, and it's the only one of the five that finances second homes and investment properties. The stronger your credit, the harder conventional is to beat.
Jumbo: For the Big Purchase
Any loan above the conforming limit ($832,750 in 2026) is a jumbo. Because the bank can't sell these to Fannie Mae or Freddie Mac, the file gets more scrutiny: higher scores, bigger down payments, cash reserves. Pricing is often surprisingly competitive — but the underwriting is not casual.
USDA: Zero Down, Outside the City
The best-kept secret for buyers open to living beyond the suburbs: 0% down, modest fees, and flexible credit — in exchange for two boxes: the home must sit in a USDA-eligible area (more of Georgia and Florida qualifies than people expect — check before assuming), and household income must stay under 115% of the area median.
Beyond the Big Five
These five are the government-and-agency lineup — but they all assume an SSN, tax returns, and U.S. credit. If that's not your situation, the wholesale market has lanes the chart doesn't show: ITIN loans for taxpayers without an SSN, bank statement loans for self-employed borrowers, DSCR loans for investors, and foreign national loans for buyers living abroad. We have a full guide on each — see the Loan Programs and Investment sections of our guides library.
How to Choose in 3 Questions
- Did you or your spouse serve in the military? Check VA first — it usually wins.
- What's your credit score? 620+ points toward conventional; 580–620 points toward FHA; below that, FHA with 10% down or a credit game plan first.
- Where and what are you buying? Rural-eligible → check USDA. Above $832,750 → jumbo. Investment property → conventional or DSCR.
Frequently Asked Questions
Which loan type has the lowest down payment?
VA and USDA are 0% down for those who qualify. Conventional starts at 3% for first-time buyers, and FHA is 3.5%. "Saving 20%" is optional — it avoids mortgage insurance but is not required to buy.
What are the 2026 loan limits?
Conforming: $832,750 baseline, up to $1,249,125 in high-cost areas. FHA: $541,287 in most Georgia and Florida counties. VA: no limit with full entitlement. Jumbo covers everything above conforming.
Which loan is best after a bankruptcy or foreclosure?
FHA and VA are the most forgiving — about 2 years after a Chapter 7 and 2–3 years after a foreclosure, versus 4 and 7 years for conventional. The clock starts at discharge or completion.
Prepared by the Alvorada Mortgage, LLC team — a mortgage broker licensed in Georgia (#2137907) and Florida (#MBR5158). NMLS #2137907. Educational content; not a commitment to lend.