There are 4 main types of home loans and then out of the box loans for the real estate investor and the self employed. However, most people fit into one of the 4 main loan types. Here’s a rundown of the loans and their differences: FHA- requires 3.5% down and charges mortgage insurance on all loans VA- requires ZERO down payment and most veterans have a funding fee that is included in the loan amount upfront to cover their specific mortgage insurance. No extra monthly mortgage insurance being paid. USDA- requires ZERO down but is only available in select rural areas and also charges mortgage insurance, but at a lower rate. Conventional Loan- Start at 3% down and is more credit sensitive. Mortgage insurance is required on all loans with less than a 20% down payment and the mortgage insurance rate is determined by credit score, how much you are putting down and the type of property you are buying. Your loan originator is licensed and can speak to each of the loans above and help you determine what is the RIGHT CHOICE for you.