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HomeCheat SheetsMortgage Types Cheat Sheet — Fixed, ARM, FHA, VA, USDA Compared
finance5 sections · 26 items

Mortgage Types Cheat Sheet — Fixed, ARM, FHA, VA, USDA Compared

Side-by-side comparison of all major mortgage types including down payment requirements, credit scores, PMI rules, and who qualifies for each.

Conventional Mortgage

ItemValueNotes
Down payment3% – 20%20% avoids PMI
Credit score minimum620+ (most lenders)Best rates at 740+
PMI (Private Mortgage Ins.)Required if < 20% downDrops off at 80% LTV
Loan limits (2026)$806,500 standard$1,209,750 in high-cost areas
Best forGood credit, 5%+ downMost flexible loan type

FHA Loan (Federal Housing Admin)

ItemValueNotes
Down payment3.5% (580+ credit)10% if credit 500–579
Credit score minimum500 (with 10% down)580 for 3.5% down
Mortgage Insurance (MIP)Required for life of loan0.55% annual + 1.75% upfront
Loan limits (2026)$524,225 standard$1,209,750 in high-cost areas
Best forLower credit, first-time buyersEasier qualification

VA Loan (Veterans Affairs)

ItemValueNotes
Down payment0% — no down payment100% financing available
Credit score minimumNo VA minimum (lenders: 620)Varies by lender
PMI / MIPNone requiredVA funding fee instead (1.25%–3.3%)
Who qualifiesVeterans, active duty, spousesMust meet service requirements
Best forEligible military membersBest mortgage program available

USDA Loan (Rural Development)

ItemValueNotes
Down payment0% — no down payment100% financing in rural areas
Credit score minimum640+ (most lenders)Manual underwriting possible below
Income limit115% of area median incomeMust not exceed limit
Location requirementUSDA-eligible rural areasIncludes many suburbs
Best forLow-to-moderate income, ruralSurprisingly generous boundaries

Fixed-Rate vs Adjustable-Rate (ARM)

ItemValueNotes
30-year fixedSame rate for 30 yearsMost popular — predictable payment
15-year fixedLower rate, higher paymentSave 50%+ in total interest
5/1 ARMFixed 5 years, then adjusts yearlyLower initial rate
7/1 ARMFixed 7 years, then adjusts yearlyGood if selling/refinancing soon
10/1 ARMFixed 10 years, then adjusts yearlyNear fixed-rate stability
ARM rate capsTypically 2/1/5 or 5/1/5Initial / annual / lifetime cap

Tip: Use landscape orientation for wider tables

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