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A Quick Guide to Home Loans – Conventional, FHA, and VA

One of the first, and most important steps in the home buying process is determining how you will finance your home. Most prospective homeowners opt to take out a mortgage and there are an array of affordable home loan options to consider. We spoke with our trusted partners at Caliber Home Loans to learn more about the three most popular mortgage options – Conventional, FHA, and VA.


Conventional loans make up around 64% of the mortgage markets. This loan type is not backed by a government agency (like FHA and VA) and is serviced by private mortgage lenders (financial institutions like banks and credit unions). Generally, conventional loans are a good option if you have a higher credit score and stable employment history. Interest rates for conventional loans are usually some of the lowest and you will often see higher loan limits.


Federal Housing Administration (FHA) loans were established in 1934 to make it easier to purchase a home, even for buyers with limited capital and/or imperfect credit. FHA loans are partially insured by the government, which reduces a lender’s risk and makes qualifying for the loan simpler. The flexible guidelines make this loan a smart choice for buyers with limited funds and marginal-to-average credit.


Veterans Administration (VA) loans are available to U.S. veterans, active duty service members, and select widowed military spouses and are issued by private lenders and partially backed by the federal government. VA loans are often a great option to those eligible because of their less restrictive qualifying requirements as well as little to no down payment. 

So what loan type is the best option for you? Speak with a trusted lender today and get started on your journey towards homeownership!

Todde Greenough

Branch Manager / Loan Consultant, Caliber Home Loans