Compare FHA, Conventional, VA, and other programs — and find the right fit for your goals.

Not all mortgages are created equal — and that’s actually a good thing. The key is choosing a loan that works for your financial situation, not someone else’s.

Whether you’re working with limited savings, have a lower credit score, or want to maximize your buying power, there’s likely a loan program designed to meet you where you are.

Let’s walk through the most common options for first-time buyers and how to know which one fits you best.

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✅ 1. FHA Loan

Great for: Buyers with lower credit scores or smaller down payments

Highlights:

• Down payments as low as 3.5%
• More flexible credit requirements (often starting at 580 FICO or lower with compensating factors)
• Backed by the Federal Housing Administration

Keep in mind:
You’ll pay mortgage insurance — but this often makes homeownership possible when other loans don’t.

🔍 Best Fit: If you’re just starting to build credit or don’t have a lot saved yet.

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✅ 2. Conventional Loan

Great for: Buyers with solid credit and steady income

Highlights:

• As little as 3% down for qualified first-time buyers (via HomeReady® or Home Possible® programs)
• Can avoid mortgage insurance with 20% down
• Backed by Fannie Mae or Freddie Mac

Keep in mind:
Stricter credit and debt-to-income requirements than FHA — but more flexibility long term.

🔍 Best Fit: If you’ve got good credit and some savings, this can offer strong flexibility and long-term value.

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✅ 3. VA Loan

Great for: Veterans, active-duty service members, and eligible surviving spouses

Highlights:

• 0% down required
• No mortgage insurance (PMI)
• Backed by the U.S. Department of Veterans Affairs
• Competitive rates and flexible guidelines

Keep in mind:
Must meet VA eligibility guidelines — but if you qualify, it’s hard to beat the benefits.

🔍 Best Fit: If you’re a veteran or active-duty military, this is often the strongest available loan.

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✅ 4. USDA Loan

Great for: Buyers in eligible rural areas

Highlights:

• 0% down required
• Low mortgage insurance costs
• Income and geographic restrictions apply

Keep in mind:
Available only in specific areas and income brackets.

🔍 Best Fit: If you’re buying in a rural area and meet income guidelines.

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✅ 5. Non-QM Loans

Great for: Self-employed buyers, gig workers, and non-traditional income earners

Highlights:

• Use bank statements, asset depletion, or rental income to qualify
• May offer flexibility on credit, income documentation, or waiting periods after credit events

Keep in mind:
These aren’t for everyone, but they open the door for buyers who don’t fit the standard box.

🔍 Best Fit: If your income doesn’t show up clearly on W-2s, a non-QM loan could be a smart path.

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🔁 How to Choose the Right One

There’s no one-size-fits-all mortgage — but there is a perfect fit for your situation. Here’s what we’ll help you evaluate:

• Credit score & history
• Down payment amount
• Monthly payment comfort zone
• Short- and long-term financial goals
• Eligibility for special programs (VA, first-time buyer, etc.)

And remember: at PRMI, we’re a direct lender — meaning we don’t send your loan off to be handled by whoever gives us the biggest commission. We handle everything in-house for most loans — so you know exactly who you’re working with and what to expect.

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🧭 Final Thought: You Don’t Need to Guess — You Need a Plan

Choosing the right loan doesn’t start with picking a program — it starts with a conversation.

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👇 Ready to see which loan fits you?

Let’s walk through your goals and build a strategy that works — with real answers, not guesswork.