Most buyers who are not using a VA loan will land on one of three programs: conventional, FHA, or jumbo. Each exists for a different kind of borrower. This page explains who each one fits and where the tradeoffs hide.
Conventional loans
The most common path, and a strong fit for buyers with steady credit and income. Down payments start as low as 3 percent for qualified buyers. If you put down less than 20 percent you pay private mortgage insurance, but unlike FHA that insurance can fall away once you build enough equity, which lowers your payment over time. In 2026 a conventional loan stays "conforming" up to $832,750 in most of the country; above that it becomes a jumbo loan.
Best for
Buyers with mid-600s credit and up who want the flexibility to drop mortgage insurance later, and anyone putting down 20 percent or more who wants to skip mortgage insurance entirely.
FHA loans
Backed by the Federal Housing Administration and built for accessibility. FHA allows lower credit scores and a 3.5 percent down payment for scores of 580 and up (10 percent down for scores of 500 to 579). The tradeoff is mortgage insurance, including an upfront premium of 1.75 percent of the loan that is usually rolled in, plus annual insurance that, on many FHA loans, stays for the life of the loan rather than dropping off automatically. For buyers still building credit, that tradeoff is often well worth it, and FHA can later be refinanced into a conventional loan once your credit and equity improve.
Best for
Buyers building credit, those with higher debt-to-income ratios, or anyone who does not yet qualify conventionally but wants to stop renting now and refinance later.
Jumbo loans
For loan amounts above the conforming limit, used on higher-value homes. Underwriting is stricter, with closer looks at credit, reserves, and income, and the terms are structured carefully. In exchange, jumbo financing opens the door to properties beyond the conventional ceiling. Down payment and reserve expectations are typically higher than conventional, and pricing varies more between lenders, which is exactly where shopping the loan pays off.
Best for
Strong-credit buyers purchasing above $832,750 (in most areas) with the income and reserves to support a larger loan.
How the three compare
| Program | Min down | Mortgage insurance |
|---|---|---|
| Conventional | As low as 3% | Under 20% down; can drop off with equity. |
| FHA | 3.5% (580+) | Upfront + annual; often for the life of the loan. |
| Jumbo | Typically higher | Varies by lender; stricter overall. |
A VA loan usually beats all three for eligible borrowers: zero down and no monthly mortgage insurance. If you have a military background, start on the VA loans page before comparing these.
How we choose
We start from your goals, your credit, your savings, and how long you plan to stay. Then, because I work as a broker, I shop these programs across a range of lenders to find the best fit and pricing for you. Sometimes the obvious answer is not the cheapest one over time. I lay the real options side by side and tell you which I would pick if it were me.
Educational information only, not a commitment to lend, an offer to extend credit, or financial advice. As a broker, Evolution Mortgage arranges loans through third-party lenders and does not lend directly. Loan approval is subject to lender credit, income, and property review, and not all applicants qualify. All figures reflect 2026 information believed accurate at the time of writing and are subject to change. VA loan eligibility is determined by the Department of Veterans Affairs. Not affiliated with or endorsed by the VA, FHA, HUD, or any government agency.