• Lower Down Payments: FHA loans typically require a down payment as low as 3.5% of the purchase price, making homeownership more accessible.
• Flexible Credit Requirements: Borrowers with credit scores as low as 580 can qualify for the minimum down payment. Those with scores between 500-579 may still qualify with a higher down payment.
• Mortgage Insurance Premium (MIP): FHA loans require both an upfront and an annual mortgage insurance premium, which protects the lender in case of default.

FHA loans are ideal for first-time homebuyers, buyers with lower credit scores, or those who have limited funds for a down payment.

• No Down Payment Required: One of the most significant advantages of a VA loan is that it doesn’t require a down payment, which can be a huge financial relief.
• No Private Mortgage Insurance (PMI): Unlike many other loan types, VA loans do not require PMI, which can save borrowers a significant amount of money over time.
• Competitive Interest Rates: VA loans often offer lower interest rates compared to conventional loans, making monthly payments more affordable.
• Funding Fee: While VA loans don’t require PMI, they do come with a one-time funding fee, which can be rolled into the loan amount.

Eligible veterans, active-duty service members, and their families who are looking to buy a home with no down payment and want to avoid PMI should consider a VA loan.

• Higher Loan Amounts: Jumbo loans are available for properties that cost more than the conforming loan limit, which is typically $726,200 for most areas but can be higher in certain high-cost regions.
• Stricter Qualification Requirements: Borrowers seeking a jumbo loan generally need a higher credit score (typically 700 or above), a larger down payment (often 20% or more), and a lower debt-to-income ratio.
• Competitive Interest Rates: Although jumbo loans are larger, interest rates can be competitive, especially for borrowers with excellent credit.

Homebuyers looking to purchase luxury properties or homes in high-cost areas that exceed conforming loan limits should consider a jumbo loan. It’s particularly suited for those with strong financial profiles and the ability to make a substantial down payment.

• No Down Payment Required: Like VA loans, USDA loans allow for 100% financing, meaning no down payment is necessary.
• Low Mortgage Insurance Costs: USDA loans have lower mortgage insurance premiums compared to FHA loans, making them more affordable in the long run.
• Income Limits: USDA loans are intended for low- to moderate-income borrowers, so there are income limits based on household size and location.
• Location Restrictions: To qualify for a USDA loan, the property must be located in an eligible rural or suburban area as defined by the USDA.

Buyers with moderate incomes looking to purchase a home in rural or suburban areas who want to take advantage of zero down payment options should consider a USDA loan.