One of the first questions buyers ask me is, "What kind of loan should I get?" The right answer depends on your savings, your credit, your service history and even where the home is. Here's a simple overview of the four most common loan types.

Conventional loans

  • Down payments can start as low as 3% for some first-time buyers. More down usually means a better rate and payment.
  • With less than 20% down, you'll pay private mortgage insurance (PMI), but it can be removed once you build enough equity.
  • Often the best fit for buyers with solid credit.

FHA loans

  • Down payments as low as 3.5% for qualifying buyers.
  • More flexible on credit scores and debt than many conventional loans.
  • FHA mortgage insurance usually stays on the loan longer, so compare the total monthly cost.

VA loans

  • For eligible veterans, active-duty service members and some surviving spouses.
  • No down payment required for eligible buyers, and no monthly mortgage insurance.
  • One of the strongest loan programs available. If you've served, ask your lender about your eligibility.

USDA loans

  • No down payment required for eligible buyers.
  • Available only for homes in USDA-eligible areas, and household income limits apply.
  • Some homes in the more rural parts of our area may qualify. You can check a specific address on the USDA eligibility map, or I can check it for you.

Which one is right for you?

The best way to know is to compare real numbers side by side. A good lender will show you the payment, cash to close and mortgage insurance for each option you qualify for. I often refer my buyers to Vince Mazzarese with CMG Home Loans. You can start your pre-qualification here.

Also, when you're looking at new construction, builder incentives sometimes work differently depending on the loan type, so it's worth asking before you choose.

Questions about buying in Johnson County? Call or text me, Ashley Forston, at (817) 240-1157.

For general information only. Loan programs, requirements and limits change. Talk with a licensed lender about your situation.