The right loan depends on where you will live, how you prove income and what you want to do—and you don't have to pick it by yourself.
The three big groups
Most home loans start in one of three groups:
- Government-backed loans (FHA, VA and USDA). A federal agency insures or guarantees part of the loan. That helps buyers with smaller down payments or lower scores.
- Conventional loans. No government backing. Most follow Fannie Mae and Freddie Mac rules. "Conforming" means the loan fits under the yearly limit; above it, the loan is a "jumbo."
- Non-QM loans (non-qualified mortgages). These use other ways to show you can repay, like bank statements instead of tax returns. They help self-employed people and investors.
Then there are loans built for one job: buying rentals, pulling cash from your home, fixing up a house, buying a business property or, after 62, turning equity into income.
Three questions that narrow it down
- Will you live there? A home you live in opens the door to FHA, VA, USDA and the lowest down payments. A rental points to investor loans.
- How do you prove income? W-2 pay stubs and tax returns fit most loans. If you are self-employed or your returns show low income, non-QM may fit better. A rental can sometimes qualify on its own rent.
- What is the goal? Buying, refinancing, taking cash out, renovating, flipping or buying for a business each has its own loan family.
Which door fits you?
Use this table as a map. Numbers are typical published minimums or common ranges and vary by lender, credit and property.
| Loan family | Who it is for | Typical minimum down | The catch |
|---|---|---|---|
| Conventional (conforming) Conventional | Buyers with fair-to-good credit and steady, documented income. | As low as 3% for eligible first-time buyers; often 5%+ | Private mortgage insurance (PMI) under 20% down. Loan must fit the conforming limit. |
| FHA FHA loans | First-time buyers and people rebuilding credit. | 3.5% with a 580+ score | Mortgage insurance: 1.75% upfront plus a yearly premium. Primary home only. |
| VA VA loans | Eligible veterans, service members and some surviving spouses. | $0 with full entitlement | A one-time funding fee unless you are exempt. Primary home only. |
| USDA USDA loans | Low- to moderate-income buyers in eligible rural areas. | $0 | Location and household income limits; 1% upfront and 0.35% yearly fees. |
| Jumbo Jumbo loans | Buyers borrowing more than the conforming limit ($832,750 in most counties in 2026). | Varies by lender; often more than conventional | Stricter credit, cash reserve and documentation rules. |
| Non-QM (non-qualified mortgage) Bank statement · 1099 · P&L · Asset depletion · ITIN | Self-employed people, gig workers, retirees with savings and ITIN borrowers whose income doesn't fit standard paperwork. | Commonly 10%–20%+; as little as 10% with select programs | Usually higher rates and costs than government or conventional loans. |
| Investor DSCR · Fix-and-flip · Bridge · New construction | People buying rentals, flips or projects to build; qualify on the property's rent or the project. | Commonly 15%–25%+; as little as 15% with select DSCR programs | Higher rates, shorter terms on flip and bridge loans, and possible prepayment penalties. |
| Home equity HELOC · Home equity loan · Cash-out refinance | Owners who want cash from the value they have built. | None; you borrow against equity you already have | Your home is the collateral. Most programs leave you at least 10%–20% equity. |
| Renovation FHA 203(k) · HomeStyle | Buyers or owners who want to fix up a home with one loan. | 3.5% (203(k) at 580+); 3% for eligible first-time buyers (HomeStyle) | More paperwork: contractor bids, inspections and draws. |
| Commercial / SBA Commercial · SBA 7(a) · SBA 504 | Business owners and investors buying offices, stores, warehouses or a building for their own business. | About 10% for many SBA 504 loans; commonly 25%–30%+ for other commercial loans | Business and property cash flow are reviewed; terms differ from home loans. |
| Reverse mortgage (HECM) HECM | Homeowners 62 and older who want to turn home equity into cash. | None to refinance; you need substantial equity | The balance grows over time. You must keep paying taxes, insurance and upkeep. HUD counseling is required. |
Down payment on a $300,000 home
FHA (3.5%)
Conventional (5%)
VA / USDA ($0)
DSCR investor (20%)
Worked example: down payment on a $300,000 purchase
| Loan | Down payment | Math |
|---|---|---|
| FHA | $10,500 | 3.5% × $300,000 |
| Conventional | $15,000 | 5% × $300,000 ($9,000 at 3% for eligible first-time buyers) |
| VA or USDA (eligible borrowers) | $0 | 0% × $300,000 |
| DSCR investor loan | $60,000 | 20% × $300,000 ($45,000 at 15% with select programs) |
Same house, very different cash needs: from $0 to $60,000. Closing costs come on top of each one. Lesson 4 shows how to add them up.
You don't have to pick
This map helps you ask better questions. You do not need to choose a loan before you reach out. Tell LoanFight about the property, your income and your goal through the intake form. We review your situation and connect you with a lending partner whose programs may fit. The lender confirms what you qualify for.
What this means for you
Start with the three questions: live there or rent it out, how you prove income, and your goal. Those answers usually point to one or two loan families. Then compare the full cost, not just the down payment: mortgage insurance, fees and the rate all matter.
Mistakes to avoid
- Assuming you need 20% down. Many buyers qualify with much less.
- Choosing a loan only by its down payment and ignoring mortgage insurance and fees.
- Using a home-buyer loan for a property you plan to rent out. Occupancy rules matter.
- Thinking self-employed people can't get a mortgage. Non-QM loans exist for that.
Words to know
- Conventional loan
- Conforming loan limit
- FHA loan
- VA loan
- Jumbo loan
- Non-QM
- DSCR
- HELOC
See the full mortgage glossary →
Common questions
What is the easiest type of mortgage to get?
There is no single easiest loan. FHA loans allow lower credit scores (3.5% down at 580), VA and USDA loans can need no down payment for eligible borrowers, and non-QM loans accept other ways to prove income. Which one is easiest depends on your credit, income, savings and the property.
What is the difference between a conforming loan and a jumbo loan?
A conforming loan fits the limit set each year by the Federal Housing Finance Agency, which is $832,750 for one unit in most counties in 2026. A loan above that limit is a jumbo loan, which usually has stricter credit, reserve and documentation rules.
What is a non-QM loan?
Non-QM means non-qualified mortgage. These loans fall outside the federal qualified mortgage rules, so lenders can use other proof of income, such as bank statements, 1099s or assets. They often cost more than government or conventional loans.
Do I need to know which loan I want before I contact LoanFight?
No. Share your goal, the property and your situation through the intake form. LoanFight reviews it and connects you with a lending partner whose programs may fit. Nothing is a commitment to lend until a lender approves your loan in writing.
Sources
- FHFA: 2026 conforming loan limit values
- Fannie Mae: 97% loan-to-value options
- HUD: FHA Single Family Housing Policy Handbook 4000.1
- VA: Purchase loans
- USDA Rural Development: Single Family Housing Guaranteed Loan Program
- CFPB: Ability-to-repay and qualified mortgage rule (Regulation Z §1026.43)
- SBA: 504 loans
- CFPB: Reverse mortgages
Ready to see what fits you?
Not sure which door is yours? That's normal. Tell us about the property and your situation, and LoanFight will review it and connect you with a lending partner whose programs may fit.
Tell Us About Your Situation →