By David Parks · eXp Realty · The Apollo Group · 2 min read
Conventional loans are not government-backed and often suit buyers with stronger credit. FHA loans allow lower down payments and more flexible credit, while VA loans offer no down payment for eligible veterans and service members.
Typically require a credit score in the mid-600s or higher and can be done with as little as 3 to 5 percent down. Private mortgage insurance (PMI) applies below 20 percent down and can be removed later.
Backed by the Federal Housing Administration, with lower minimum credit scores and down payments as low as 3.5 percent. They carry mortgage insurance premiums, and have loan limits and property condition standards.
For eligible veterans, service members, and some spouses. They often require no down payment and no monthly mortgage insurance, though a funding fee may apply.
USDA loans for eligible rural areas, jumbo loans for higher amounts, and state housing programs also exist.
| Conventional | FHA | VA | |
|---|---|---|---|
| Typical minimum down payment | 3 to 5% | 3.5% | Often 0% |
| Credit score | Mid-600s or higher | Lower minimums allowed | Set by lenders |
| Mortgage insurance | PMI below 20% down (removable) | Mortgage insurance premiums | No monthly MI; funding fee may apply |
| Often best for | Buyers with stronger credit | Lower down payments, flexible credit | Eligible veterans and service members |
Typical figures. Lender requirements and program rules vary, so confirm with a lender.
Compare total cost, not just rate. Ask a lender to show payments, mortgage insurance, and upfront costs side by side, and talk to your agent about which properties qualify.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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