Choosing the Right Loan for Your Home Purchase

What Loan Type Fits You Best? (Hint: It’s Not Always VA)

📍 Introduction

One of the first — and most important — decisions in the homebuying process is choosing your loan type. It’s not as intimidating as it sounds. Whether you're a first-time buyer, a veteran, or somewhere in between, the right mortgage should fit your goals, your timeline, and your finances.

Let’s break it down in simple terms, so you can confidently decide what’s best for you.

🧭 The 3 Most Common Home Loan Types

1. VA Loan

Best for eligible veterans, service members, and surviving spouses

Benefit	Why It’s Powerful
$0 Down	No need for a down payment — keeps more money in your pocket
No PMI	Private mortgage insurance (PMI) is waived, saving hundreds monthly
Competitive Rates	Often lower than conventional loan rates
Flexible Credit	Minimum scores around 620+ (varies by lender)
Assumable	Can take over someone else’s low-rate VA loan

2. FHA Loan

Great for first-time buyers or lower credit

Feature	Why It Helps
3.5% Down	Lower upfront cost compared to conventional
580+ Score	Lenient credit guidelines
More Forgiving	Debt-to-income limits are a bit higher
Upfront + Monthly Mortgage Insurance	Required, but enables easier qualification

3. Conventional Loan

Ideal for buyers with strong credit or higher down payments

Feature	Why It’s Strong
3%–20% Down	More flexibility if you can put more down
620+ Score	Often requires higher credit for best terms
No Upfront Fee	No funding fee like VA or FHA
Avoid PMI	With 20% down, you skip private mortgage insurance

🔍 Which Loan Fits You?

Ask yourself:

• Are you eligible for a VA loan?

• Is a low down payment important?

• Are you looking for the lowest monthly payment — or lowest total cost?

• Do you want the ability to assume or offer an assumable loan in the future?
  

There’s no one-size-fits-all mortgage. The best loan is the one that helps you move forward confidently, not the one with the fanciest name.

🧠 Quick Tip: You Don’t Have to Choose Alone

Many buyers start off thinking one loan type is “best,” but later realize another path saves more — or helps them qualify sooner. We’re happy to walk you through your options based on your financial picture and timeline.

💬 Final Thought

The loan you choose is just as important as the home you fall in love with. Whether you qualify for a VA loan, are exploring FHA options, or want to compare with conventional financing — we’re here to guide, not sell.

📞 Want help comparing loan options? We offer no-pressure walkthroughs with our trusted lenders. 👉 Schedule a chat here Or send us a quick message — we’re happy to help any time.