Compare Mortgage Loan Types (2026)
Not all mortgages are the same. Compare 10 loan types to find the best fit for your financial situation, down payment, and homeownership goals.
| Loan Type | Min. Down | Min. Credit | PMI? | Best For | |
|---|---|---|---|---|---|
| 30-Year Fixed-Rate Mortgage | 3% | 620 | Yes* | First-time homebuyers | Details |
| 15-Year Fixed-Rate Mortgage | 3% | 620 | Yes* | Refinancers looking to pay off sooner | Details |
| FHA Loan | 3.5% | 500 | Yes* | First-time homebuyers | Details |
| VA Loan | 0% | 580 | No | Veterans and active military | Details |
| USDA Loan | 0% | 640 | Yes* | Rural and suburban homebuyers | Details |
| Jumbo Loan | 10-20% | 700 | No | Luxury home buyers | Details |
| Adjustable-Rate Mortgage (ARM) | 3-5% | 620 | Yes* | Buyers planning to move within 5-10 years | Details |
| Interest-Only Mortgage | 20-30% | 720 | No | High-income professionals with variable income | Details |
| Balloon Mortgage | 10-20% | 680 | No | Real estate investors | Details |
| Home Equity Line of Credit (HELOC) | N/A | 680 | No | Homeowners needing flexible access to funds | Details |
| Reverse Mortgage (HECM) | N/A | 580 | Yes* | Retirees who want to age in place | Details |
| Construction Loan | 20-25% | 680 | No | Custom home builders | Details |
*PMI required if down payment is less than 20% for conventional loans. FHA has MIP. VA has no PMI.
30-Year Fixed-Rate Mortgage
The most popular mortgage with a fixed interest rate and predictable payments over 30 years.
15-Year Fixed-Rate Mortgage
Build equity faster with a lower rate and pay off your home in half the time.
FHA Loan
Government-backed loan with low down payment and flexible credit requirements.
VA Loan
Zero down payment mortgage exclusively for veterans, active military, and eligible spouses.
USDA Loan
Zero down payment mortgage for eligible rural and suburban homebuyers.
Jumbo Loan
Financing for luxury properties and high-cost areas exceeding conforming loan limits.
Adjustable-Rate Mortgage (ARM)
Lower initial rate that adjusts after a fixed period, ideal for shorter-term ownership.
Interest-Only Mortgage
Pay only interest for an initial period, with full payments beginning later.
Balloon Mortgage
Low payments for a set term with the full remaining balance due at the end.
Home Equity Line of Credit (HELOC)
Revolving credit line secured by your home equity with flexible draw and repayment.
Reverse Mortgage (HECM)
Convert home equity to cash without monthly payments for homeowners 62 and older.
Construction Loan
Finance the building of a new home, often converting to a permanent mortgage upon completion.