Non-Conventional Loans

These loans are insured by the government. They are FHA, VA, and USDA.

Their down payments are 3.5% for FHA, $0 for VA, and $0 for USDA. All have up-front fees that can be added to the loan amounts, but it’s possible to get a VA loan and avoid paying the fee. Mortgage insurance is required for FHA and USDA loans, but not for VA loans.

The interest rates for these loans are less than for conventional loans. VA loans, typically, have the lowest interest rates.