Most buyers pull up a mortgage loan types comparison chart, scan the down payment column, and pick the smallest number. That instinct is reasonable, and it is also where a lot of expensive decisions get made. The down payment is the row that gets the headline. The rows that decide whether you can actually carry the house sit three lines lower, in mortgage insurance premiums, upfront fees, and reserve requirements.
What follows is how a loan officer reads that chart, which numbers are real, and which ones quietly change once you get to underwriting.
The five columns on almost every comparison chart
Nearly every chart you’ll find online covers the same five products. The differences that matter are rarely in the interest rate estimate at the top.
Conventional loans
Not backed by a government agency. Fannie Mae and Freddie Mac buy most of them, which is why the rules feel uniform from lender to lender. Down payments start at 3% for first-time buyers through programs like HomeReady and Home Possible, and 620 is the usual credit floor. Private mortgage insurance applies until you build roughly 20% equity, then it drops off.
FHA loans
Insured by the Federal Housing Administration. The headline is 3.5% down and a 580 credit score, and the trade-off is mortgage insurance you may never shed. Put down less than 10% and the annual premium typically stays for the life of the loan unless you refinance out of it.
VA loans
Zero down, no monthly mortgage insurance, and competitive pricing for eligible veterans, active-duty service members, and surviving spouses. The catch is the funding fee, which runs 2.15% of the loan amount on a first use with less than 5% down. It can be financed, so it doesn’t hit at closing, but it does raise the balance you’re paying interest on.
USDA loans
Also zero down, but restricted to properties in designated rural areas and to households under an income cap, usually 115% of the area median. There’s a 1% upfront guarantee fee and an annual fee of about 0.35%. The eligibility map decides more than your credit score does.
Jumbo loans
Anything above the conforming loan limit, which sits near $800,000 in most U.S. counties and higher in expensive markets. Expect 10% to 20% down, a 700-plus score, and six to twelve months of cash reserves after closing. No mortgage insurance, because lenders price the risk into the rate instead.
The side-by-side numbers
| Loan type | Min. down | Typical min. score | Mortgage insurance | Defining rule |
|---|---|---|---|---|
| Conventional | 3% | 620 | PMI until ~20% equity | Best pricing for strong credit |
| FHA | 3.5% | 580 | 1.75% upfront + ~0.55%/yr | Flexible on credit and gift funds |
| VA | 0% | 580–620 (lender overlay) | None; funding fee instead | Military service eligibility required |
| USDA | 0% | 640 typical | 1% upfront + ~0.35%/yr | Rural area and income cap |
| Jumbo | 10–20% | 700+ | Usually none | Reserves and full documentation |
The insurance rows decide more than the rate
On a $400,000 purchase, the difference between a 3% and a 3.5% down payment is $2,000 at closing. The difference in mortgage insurance over seven years is usually bigger.
Run an FHA scenario: $14,000 down, a $386,000 base loan, plus a 1.75% upfront premium of $6,755 rolled into the balance. The annual premium works out to about $177 a month. A conventional loan at 3% down puts $12,000 down on a $388,000 loan, and private mortgage insurance might run $160 to $200 a month depending on the score. Similar money at first. The split comes later. At 78% loan-to-value, the PMI disappears. On that FHA loan, the premium keeps going unless you refinance.
That single row is why a chart that only compares down payments sends people in the wrong direction.
What the chart leaves out entirely
Every comparison chart is a simplification. These are the omissions that most often change an approval:
- Debt-to-income limits. Conventional loans often cap total debt at 45% to 50% with strong compensating factors. FHA will stretch to 50% or slightly above with automated approval. VA has no hard ceiling on paper but most lenders want to see 41%.
- Cash reserves. A jumbo approval can require six months of payments in the bank after closing, money that never shows up in a down payment column.
- Appraisal standards. FHA appraisals flag peeling paint, missing handrails, and other safety issues that a conventional appraisal ignores. A house can pass one and fail the other.
- Seller concessions. FHA allows up to 6% of the price toward your closing costs, conventional typically 3% above 90% LTV, and USDA allows seller contributions plus financing of the guarantee fee.
- Assumability. VA loans can often be taken over by a qualified buyer, which becomes a selling point if rates rise later.
Build your own version with real numbers
Generic charts use national averages. Yours should use the actual property, your actual credit profile, and quotes from three lenders.
- Enter the exact purchase price and the property address, since USDA eligibility and county loan limits both hinge on location.
- Pull your middle credit score from all three bureaus. Lenders use the middle of the three, not the average.
- Add up every monthly obligation: car loans, student loans, minimum card payments, child support. Divide by gross monthly income to get your DTI before you shop.
- Ask each lender for a Loan Estimate on the same day for the same loan type, then compare the box labeled “Total Loan Costs,” not just the rate.
- Model the payment at year one and at year eight. Mortgage insurance changes, taxes and insurance escrow change, and a chart showing only the first month hides all of it.
Local markets break the national chart
Two identical households on the same street can qualify for different loan types because the property line falls on different sides of an eligibility map. A USDA loan and an FHA loan can look nearly interchangeable in a national table and then diverge sharply once you plug in a specific ZIP code, particularly on income caps and property condition requirements. Working through USDA versus FHA eligibility by location is worth an hour before you fall in love with a listing.
Pricing moves by geography too. Rates in a mid-sized metro with heavy lender competition aren’t the same as rates in a rural county served by three banks. A look at average mortgage rates by city for 2026 gives you a realistic starting band before you contact anyone.
Rate shopping belongs on a separate page
Loan type is one decision. Which lender delivers it is another, and the spread between quotes on the same product can run half a point or more. National averages are marketing numbers built from surveys, not offers. The quote in your hand reflects that lender’s overhead, its appetite for your credit profile, and how busy its pipeline is that week. Reading up on why your best quote isn’t the national average will save you from anchoring to a number nobody was ever going to give you.
Pressure-test three scenarios, then commit
Pick the two or three loan types you’re actually eligible for and run each one on the same house. Look at the cash needed at closing, the payment in month one, the payment in year eight after insurance drops or doesn’t, and the total interest if you sell in seven years rather than thirty.
A buyer with a 700 score, $15,000 saved, and a $400,000 target in an eligible rural county might find USDA wins on cash to close but loses on the annual fee against a conventional loan at 3% down. A veteran with the same savings usually finds VA the obvious answer at zero down, even after financing an $8,600 funding fee, because there’s no monthly insurance dragging on the payment. And a buyer at 640 with limited reserves often discovers FHA is the only door that opens at all, which makes the lifetime premium a cost of entry rather than a mistake.
The chart gets you into the right neighborhood of products. Your Loan Estimates, your DTI, and your timeline for selling or refinancing make the final call.