Selecting the right home loan can help you save both money and stress. FHA, VA and Conventional loans each fit a different kind of buyer. Use these quick tips to match the loan to your budget, credit, and goals.

Start with your credit score

Your credit score sets your rate and options. FHA is more lenient if your credit score is lower. Conventional loans reward borrowers with higher credit scores with better rates and lower costs. VA loans also offer strong terms for eligible service members and veterans.

Check your down payment

If you have a 20% down payment, a conventional loan can help you avoid private mortgage insurance (PMI). With a smaller down payment, FHA may be easier to qualify for, though you’ll pay a mortgage insurance premium (MIP). VA loans often need no down payment at all, which keeps more cash in your pocket.

Compare monthly costs, not just rates

Look at the whole payment: principal, interest, taxes, insurance, and any mortgage insurance. FHA has upfront and annual MIP. Conventional loans may charge PMI until you reach about 20% equity, many borrowers can remove it later. VA loans do not require PMI, but they do include a funding fee, unless you qualify for an exemption. Also, check your debt-to-income ratio (DTI); the lower it is, the easier approval can be.

Know the property and appraisal rules

FHA has stricter property standards. That can be a plus for safety, but it may limit certain homes. Conventional and VA appraisals focus on value and basic condition. If the house needs work, ask your lender about repair-friendly options.

Think about how long you’ll stay

If this is your “starter” home, low upfront costs might matter most. If you plan to stay long-term, paying more upfront to reduce ongoing costs could make sense. Run the break-even math on fees and insurance. Leave room in your budget for maintenance and surprises.

A quick word on insurance

Regardless of your loan type, lenders will typically require homeowners' insurance. Shop early so your policy matches the home’s value, local risks, and your budget. A good policy can protect the equity you’re working so hard to build.

There is no “best” loan for everyone. FHA helps when the credit or down payment is tight. VA is a powerful benefit for those who served. Conventional shines when your credit and savings are strong. Know your total costs, ask clear questions and choose the path that supports your long-term plan.