FHA, VA, or Conventional: Choosing the Right First Mortgage

First-time buyers often assume there’s one mortgage product waiting for them. In reality, you’ll likely weigh at least three — and the right choice depends on your credit, your savings, and your service history.

Conventional loans

Best for buyers with a credit score of 620+ and at least 3% down. No upfront insurance premium, and PMI drops off once you reach 20% equity. Flexible terms make this the most common path for buyers with solid credit.

FHA loans

Designed for buyers with lower credit scores or smaller savings. Allows scores as low as 580 with 3.5% down. Comes with both an upfront mortgage insurance premium and an ongoing one, which stays for the life of the loan in most cases.

VA loans

Available to eligible veterans, active military, and some surviving spouses. No down payment, no PMI, and competitive rates. A one-time VA funding fee applies, though it can often be rolled into the loan.

The best fit usually reveals itself once you put your numbers side by side. A good loan officer can run the comparison in minutes and show you the total cost over the time you plan to stay in the home — which matters more than the headline rate.