It's important to know the difference between the two main types of home loans as they can differ in required down payment and qualifications. A conventional loan is the kind of loan most often offered by banks. A private lender provides these loans rather than a government agency. If you put down less than 20% for your down payment, a conventional loan will typically require PMI. An FHA loan (Federal Housing Administration) is backed by the government and the FHA itself. These loans are helpful for buyers who fall into the low to moderate-income range. FHA loans have more lenient requirements, requiring a credit score of just 580 and allowing people who qualify to borrow up to 96.5% of the home's value. This means you only need to make a down payment of 3.5%. Even if your credit score is lower than 580, you may still qualify by making a down payment of 10%.