Cash to close
The down payment is only one part of the starting cash plan. Closing costs, prepaid expenses, and reserves also matter.
MORTGAGE LOAN OPTIONSCompare
Compare
mortgage options.
Review each loan by cash to close, monthly payment, property requirements, and expected time in the loan.
START WITH THE COMPLETE COST
Compare the complete cost.
Compare each loan with the same borrower, property, and homebuying goal.
A lower down payment may protect savings, but it can also change mortgage insurance, fees, and the monthly cost. Occupancy and property rules can also remove an option that looked attractive at first.
The interest rate matters, but it does not settle the comparison. Review the cash needed to close, the complete monthly payment, the property requirements, and the expected time in the loan.
Prequalification creates a practical starting point by reviewing income, debts, available cash, credit, eligibility, and purchase goals together.
Complete monthly cost
The rate and term affect the loan payment. Taxes, insurance, mortgage insurance, and association dues complete the monthly budget.
Property requirements
Property type, occupancy, condition, location, and loan amount can change which programs are available.
Future plans
The expected time in the home, benefit reuse, refinance possibilities, and cash kept in reserve can change the best option.
THE MAJOR LOAN FAMILIES
Compare the main loan types.
Start with the defining benefit, cost, and eligibility requirements of each program.
CONVENTIONAL LOANS
Conventional loans offer flexible options.
Conventional financing is not insured or guaranteed by a federal agency. Qualified buyers may find options for primary residences, second homes, investment properties, condos, and a broad range of down payments.
That flexibility comes with a detailed review. Credit profile, loan to value, property type, occupancy, and loan amount can affect pricing, mortgage insurance, and documentation.
Explore Conventional loans →
VA HOME LOANS
VA loans may reduce upfront and monthly costs.
Eligible Veterans, service members, and surviving spouses may be able to purchase with no required down payment and no monthly private mortgage insurance.
The benefit does not replace mortgage approval or property review. Entitlement, occupancy, income, credit, residual income, appraisal, and the home still determine the final loan.
Explore VA loans →FHA can reduce the down payment barrier.
FHA financing can be useful when a smaller down payment belongs in the comparison. Upfront and monthly mortgage insurance remain part of the cost, so compare the complete payment.
Explore this option →USDA can remove the required down payment for an eligible purchase.
Qualified buyers purchasing an eligible property may have a no required down payment option. Household income, property location, and primary occupancy determine whether the program is available.
Explore this option →Jumbo financing covers loan amounts above conforming limits.
Credit, reserves, down payment, property, and documentation often receive closer review when the loan amount exceeds the applicable conforming limit.
Explore this option →COMPARE THE COMPLETE TRANSACTION
The down payment is only the first difference.
Use the same home price, term, and borrower assumptions for every loan family.
Mortgage insurance can change the monthly cost. Program fees can change the financed balance. Occupancy requirements can remove an option. Property standards can also matter for a condo, manufactured home, or small multiunit property.
No program wins every comparison. The goal is to choose the tradeoffs that work for the specific buyer and home.
| Decision | Conventional | VA | FHA | USDA | Jumbo |
|---|---|---|---|---|---|
| Down payment possibility | As little as 3% for certain qualified buyers | No required down payment may be possible | As little as 3.5% for qualified buyers | No required down payment may be possible | Varies by lender and scenario |
| Monthly mortgage insurance | May apply above 80% loan to value | No monthly private mortgage insurance | Monthly mortgage insurance applies | An annual guarantee fee applies | Often not required |
| Distinctive program cost | Private mortgage insurance when applicable | VA funding fee may apply | Upfront mortgage insurance premium | Upfront guarantee fee | No government program fee |
| Occupancy | Primary, second home and investment paths | Eligible primary residence | Eligible primary residence | Eligible primary residence | Primary, second home and investment paths may be available |
| Property considerations | Broad flexibility with property and project review | VA appraisal and property requirements | FHA appraisal and property requirements | Eligible location and property requirements | Detailed appraisal and reserve review |
COMPARE WITH YOUR NUMBERS
Start instant prequalificationCompare every loan option with the same home and borrower details.
Prequalification can narrow the field using your income, debts, available cash, and purchase goal.
THE HOME CHANGES THE OPTIONS
The loan program must fit the property.
The property changes your loan options.
A detached primary residence may fit several loan families. A condo introduces project and insurance review. A manufactured home can bring foundation, title, and lender requirements. A two to four unit property changes occupancy and rental income considerations. A rural address may open a USDA option, while a higher loan amount may require Jumbo financing.
Review those details before making an offer. Early review creates time to confirm property eligibility, reserves, repairs, association documents, and appraisal requirements.
- Confirm the intended occupancy and home type.
- Review the loan amount against county and unit limits.
- Identify condo, manufactured housing or multiunit requirements early.
- Keep insurance, taxes and association costs in the monthly plan.
MORTGAGE LEARNING CENTER
Understand the tradeoffs before choosing a program.
Use these guides to compare the decisions that change cash, payment, and property eligibility.
Compare structures
VA and Conventional: compare the complete transaction
Put down payment, program fees, mortgage insurance, occupancy and property review on the same page.
Read the guide →
Plan the cash
Cash to close is more than the down payment
Understand closing costs, prepaid expenses, reserves and the choices that may reduce upfront cash.
Read the guide →
Property fit
How the home can change your mortgage options
See why condos, multiunit homes, manufactured housing and loan size deserve an early review.
Read the guide →Drag to explore more guides
LOAN OPTION QUESTIONS
Use direct answers to compare the available programs.
Which mortgage may fit a first time buyer?
There is no single first time buyer mortgage. Conventional, FHA, VA and USDA financing can all be useful depending on credit, income, available cash, military eligibility, property location and the home itself. Prequalification creates a useful starting point because the comparison uses your income, debts, available cash and purchase goal.
What mortgage options may allow a small down payment?
Certain Conventional programs may permit down payments starting at 3% for qualified buyers. FHA financing may begin at 3.5%. Eligible VA and USDA borrowers may have a no required down payment path. Closing costs, reserves and program expenses still need to be planned.
Why can the property change the available loan options?
A condo project, manufactured home, multiunit property, rural location or higher priced home may introduce additional requirements. Program rules can address occupancy, appraisal standards, project approval, unit count, condition and location.
Can I compare several loan types after prequalification?
Yes. A useful prequalification review can create a shared set of assumptions for comparing cash to close, payment, mortgage insurance, program costs and property requirements across more than one loan type.
Is prequalification a commitment to borrow?
No. Prequalification is an early review based on the information provided. It is not an approval, loan commitment or guarantee of financing.
NEXT STEPS
Continue your mortgage plan.
Use the same income, cash, property, and payment assumptions in the next tool or guide.
START WITH YOUR NUMBERS
Start prequalificationStart with the homebuying goal instead of a program name.
Prequalification and a licensed Loan Officer can help narrow the options using the borrower, property, cash, and payment details.