A conventional loan is a type of mortgage that is not guaranteed or insured by any government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional loans are typically offered by private lenders such as banks, credit unions, and mortgage companies.

These loans often require higher credit scores and larger down payments compared to government-backed loans. They also have stricter eligibility criteria and may have higher interest rates for borrowers who do not have excellent credit histories. However, conventional loans offer more flexibility in terms of loan amounts and property types, making them a popular choice for many homebuyers.

An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD). These loans are designed to make homeownership more accessible to individuals with lower credit scores and smaller down payments.

FHA loans are popular among first-time homebuyers and those who may not qualify for conventional loans due to less-than-ideal credit histories or smaller down payment capabilities. They typically require a down payment of as little as 3.5% of the home's purchase price, making them attractive to borrowers with limited savings.

Because FHA loans are backed by the government, lenders are more willing to extend credit to borrowers who may not meet the stringent requirements of conventional loans. However, borrowers are required to pay mortgage insurance premiums, both upfront and annually, which can increase the overall cost of the loan.

FHA loans also have limits on the amount that can be borrowed, which vary depending on the location of the property. These limits are set to prevent excessive borrowing and to ensure that the program remains focused on assisting moderate- to low-income borrowers.

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA), exclusively available to eligible veterans, active-duty service members, and certain surviving spouses. They often feature no down payment or mortgage insurance requirements, making homeownership more accessible to those who have served in the military.

USDA loans are mortgages offered by the United States Department of Agriculture (USDA) to encourage homeownership in rural and suburban areas. They feature low down payment requirements and may offer reduced interest rates, making them accessible to low-to-moderate income borrowers who meet specific eligibility criteria.

Jumbo loans are mortgages that exceed the conforming loan limits set by government-sponsored enterprises like Fannie Mae and Freddie Mac. They are typically used to finance higher-priced properties. Jumbo loans often require larger down payments, have stricter credit requirements, and may have higher interest rates compared to conforming loans.