A conventional loan is a mortgage loan, which is not insured or guaranteed by any agency of the state or federal government.
First-time home buyers choose FHA loans for their low rates and because they are often easier to obtain.
If you are on active duty or retired military, the Veterans Administration offers a number of mortgage options that could be right for you.
The USDA home loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the US Department of Agriculture. To qualify, families must be without adequate housing, but able to afford the mortgage payments. Those eligible may have an income up to 115% of median income for the area. These loans offer 100% financing to qualified buyers with the option for closing costs to be either paid for by the seller or financed into the mortgage loan.
Disadvantages: USDA loans include lifetime monthly insurance premiums (MIP), including an upfront MIP that is rolled into the note. MIPs for USDA loans are typically higher than those associated with conventional mortgage loans.