Short Answer
The most common mortgage types for first-time buyers are conventional loans, FHA loans, VA loans, and USDA loans. Conventional loans require higher credit scores but offer flexibility. FHA loans are easier to qualify for with lower credit scores and down payments. VA loans offer zero down payment for eligible veterans. USDA loans offer zero down payment in eligible rural and suburban areas. Your choice depends on your credit score, down payment savings, and eligibility for special programs. A lender can help you compare your options.
Each mortgage type has different requirements and benefits. Conventional loans are the most common and require a minimum credit score of 620 with 3% to 5% down. They offer flexible terms and you can cancel PMI once you reach 20% equity. FHA loans are backed by the Federal Housing Administration and require a minimum credit score of 580 with 3.5% down. They are more forgiving of lower credit scores but require mortgage insurance for the life of the loan if you put less than 10% down. VA loans are available to eligible veterans, active duty service members, and surviving spouses. They offer zero down payment, no PMI, and competitive interest rates. A VA funding fee applies unless you are exempt. USDA loans are available for homes in eligible rural and suburban areas and offer zero down payment. Income limits apply. The right choice depends on your specific financial situation. A good lender will walk you through each option and recommend the best fit.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I work with several trusted lenders in South Jersey who will take the time to explain each loan option and help you choose the right one. Do not assume you need 20% down. Many first-time buyers qualify for low-down-payment programs they did not know existed. Let us get you connected with a lender who can review your situation and recommend the best mortgage type for your goals.
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