VA loans help active service members, veterans, and their surviving spouses become homeowners. They provide up to 100% financing on the value of a home. Eligible borrowers can use a VA loan to purchase or build a home, improve and repair a home, or refinance a mortgage. There is no private mortgage insurance requirement and no prepayment penalty if the borrower pays off the loan early.

U.S. Department of Agriculture (USDA) home loans open the dream of owning a home up to people in low-population areas who otherwise could not afford it. If you live in a place with a population of less than 35,000 and have low to moderate income, this loan can provide 100% financing.

FHA loans don’t require a large down payment. You can put down as little as 3.5 percent of the purchase price of the property. FHA loans are a good option for first-time home buyers who have not had as much time to save for a large down payment or establish a high credit score. Even if you’ve suffered from bankruptcy or foreclosures that have hindered your ability to qualify for traditional loans, you may still qualify for a mortgage through the FHA. FHA loans allow credit scores down to 580.

A Conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity, like the loan types above. Conventional mortgages can be guaranteed by two government-sponsored enterprises; the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Conventional mortgages typically have a fixed rate of interest, which means that the interest rate does not change throughout the life of the loan. A Conventional loan will have a term of 10, 15, 20, 25 or 30 years. Conventional loans can be used for a primary residence, 2nd home or investment property.