Which Home Loan Is Right for Me?

Start with your situation, not a loan type

Most people buying a home or refinancing have never compared loan programs before, so it's completely normal not to know whether an FHA loan, a conventional loan or something else fits best. Lenders don't expect you to pick a program first. They look at your situation and match it to the programs you may qualify for.

Mortza works the same way. You describe your goals in your own words, Mortza's AI explains which loans may fit and why, and a licensed loan officer confirms what you actually qualify for.

The main kinds of home loans, in plain English

Conventional loans are the most common mortgages. They are not insured by the government, and most follow Fannie Mae and Freddie Mac rules. Some conventional programs let qualifying buyers put as little as 3 percent down, according to Freddie Mac. More on conventional loans.
FHA loans are insured by the Federal Housing Administration. According to HUD, borrowers with credit scores of 580 or higher can qualify for a minimum down payment of 3.5 percent. FHA loans carry mortgage insurance and are for a home you will live in.
VA loans are for eligible service members, veterans and some surviving spouses. According to the VA, eligible borrowers with full entitlement can often buy with no down payment.
USDA loans are for homes in eligible rural and some suburban areas, for households within income limits, with no down payment required for eligible borrowers. You can check an address on the USDA eligibility site.
Jumbo loans are for loan amounts above the yearly conforming limit set by the Federal Housing Finance Agency, which is higher in many high-cost counties.
Loans for self-employed borrowers and investors, often called Non-QM loans, let a lender verify income with bank statements, a profit and loss statement, 1099s, savings or a rental property's income instead of only tax returns. More on these loans.

FHA or conventional: how to think about it

This is the choice most buyers face, and the answer depends on your numbers rather than on a rule of thumb.

Credit score. FHA's published minimums are designed to be accessible, while conventional pricing tends to reward higher scores. If your credit is still being rebuilt, FHA is often worth comparing.
Down payment. Both can work with a small down payment: as little as 3 percent on some conventional programs for qualifying buyers and 3.5 percent on FHA for borrowers who meet HUD's credit threshold.
Mortgage insurance. With less than 20 percent down, a conventional loan usually has private mortgage insurance, which can be removed later under rules the CFPB explains. FHA loans have their own mortgage insurance premiums, which work differently.
The home. FHA loans are for a home you will live in. Conventional loans can also be used for second homes and investment properties.

The practical way to decide is to compare both on the same home. A loan officer can show you Loan Estimates for each so you can see the monthly payment and total cost side by side.

A quick guide by situation

Your situation	Loans worth asking about
First-time buyer with a small down payment	Conventional low down payment programs and FHA
Credit still being rebuilt	FHA, then conventional once your score improves
Veteran or service member	VA first, then conventional or FHA to compare
Buying outside the big metro areas	USDA, if the address and your household income qualify
Higher-priced home	Conventional high-balance or jumbo
Self-employed, tax returns show low income	Bank statement or profit and loss loans
Buying a rental property	Conventional investment loans or rental property (DSCR) loans
Past bankruptcy or foreclosure	Depends on how long ago; FHA, conventional or a loan built for credit events

These are starting points, not approvals. Requirements vary by lender and program, and a licensed loan officer confirms what fits.

What helps you get a clear answer

You can get useful guidance with rough numbers. It helps to know your approximate credit score range, how much you have saved for a down payment and closing costs, how you earn your income, your price range or the home's value, and whether you have served in the military. You don't need documents to start the conversation.

How Mortza helps you choose

Answer a few quick questions or ask Mortza's AI anything in your own words. Mortza explains which loan types may fit your situation, what each one asks of you, and the tradeoffs, without quoting rates or making approval decisions. When you are ready, a licensed loan officer reviews your situation and confirms your options.

Common questions

Do I need to know what kind of loan I need before I apply?

No. Lenders match your situation to the programs you may qualify for. You only need a rough idea of your credit, savings, income type and price range to get started.

Is an FHA loan or a conventional loan better?

Neither is better for everyone. FHA is often worth comparing when your credit is still being rebuilt, while conventional loans can be a good fit with stronger credit and allow mortgage insurance to be removed later. Comparing Loan Estimates for both on the same home shows which costs less for you.

Can I get a home loan with a small down payment?

Often, yes. Some conventional programs allow as little as 3 percent down for qualifying buyers, FHA allows 3.5 percent for borrowers with credit scores of 580 or higher according to HUD, and VA and USDA loans can allow no down payment for eligible borrowers.

What if I'm self-employed?

If your tax returns show the income you need, a conventional or FHA loan may work. If write-offs lower your taxable income, loans that use bank statements or a profit and loss statement may be worth comparing. They usually cost more, so it helps to look at both paths.

Which home loan is right for me?