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Loan types compared

Which mortgage fits you?

FHA sets its floor at a 500 credit score, VA sets no minimum score at all, and Fannie Mae sets no minimum for a loan approved through its automated system. Ten loan types follow ten different sets of rules like these, so the table below puts them side by side. The mortgage that fits you depends on whether you are buying or refinancing a home you will live in, whether you have VA eligibility, how your income is documented, and whether the property is a home, a second home or an investment property.

Reading the table: the conventional, FHA and VA rows show the agency's own rule, and a lender may add stricter requirements of its own. The rows labeled “One lender’s matrix” show a single lender’s current guidelines, named in the sources, and are not a rule every lender follows. Every cell has a numbered source below the table.

  • Conventional

    Agency rule

    Who it’s for
    Loans up to the conforming limit, the size Fannie Mae and Freddie Mac buy: $832,750 for one unit in most of the country in 2026.1,6
    Least down
    3% on a fixed-rate one-unit home you will live in, when at least one person on the loan is a first-time buyer (or it is HomeReady, or paired with a Community Seconds). 5% otherwise on a home you live in.1,2
    Credit score
    Fannie Mae sets no minimum score for a loan approved through its automated system (DU). A manually underwritten fixed-rate loan needs 620.3
    Mortgage insurance
    Required above 80% loan-to-value, meaning less than 20% down, under Freddie Mac’s guide. Coverage you pay for can be cancelled under the Homeowners Protection Act.4
    Occupancy
    Home you live in up to 97%, second home up to 90%, investment property up to 85% of the price on a one-unit purchase.1,5
    The catch
    The 3% down option is fixed-rate only, one unit only, and not available on high-balance loans.1,2

  • FHA

    Agency rule

    Who it’s for
    Clients buying or refinancing a home they live in, with credit scores down to 500.7,8
    Least down
    3.5% with a score of 580 or higher. 10% with a score from 500 to 579.8
    Credit score
    500 is the floor. Below 500 is not eligible for FHA at all.7,8
    Mortgage insurance
    Upfront premium of 1.75% of the base loan, plus an annual premium. With 3.5% down on a 30-year loan up to $726,200, the annual premium is 0.55% for the life of the loan.9
    Occupancy
    Home you live in. At least one person on the loan moves in within 60 days and plans to stay at least a year.7
    The catch
    With less than 10% down, the annual premium lasts as long as the loan does. With 10% or more down, it ends after 11 years.9

  • VA

    Agency rule

    Who it’s for
    Veterans, service members and some surviving spouses with VA eligibility, proved by a Certificate of Eligibility.11
    Least down
    None required by VA, unless the price is above the appraised value or the loan has graduated payments.10
    Credit score
    VA sets no minimum credit score.12
    Mortgage insurance
    A one-time funding fee instead: 2.15% of the loan on first use with less than 5% down, lower with more down. Waived for veterans receiving VA disability compensation.13
    Occupancy
    Home you live in. The veteran certifies they intend to personally occupy it.10
    The catch
    VA also checks residual income, the money left each month after the bills, and a shortfall alone can stop a loan.12

  • Jumbo

    Each lender’s own

    Who it’s for
    Loans above the conforming limit: more than $832,750 for one unit in most of the country in 2026, and more in high-cost counties.6,5
    Least down
    Set by each lender
    Credit score
    Set by each lender
    Mortgage insurance
    Set by each lender
    Occupancy
    Set by each lender
    The catch
    Fannie Mae and Freddie Mac cap the loans they buy at the conforming limit, so the down payment, score and reserve rules on a jumbo are each lender’s own.5

  • HELOC or second mortgage

    One lender’s matrix

    Who it’s for
    Homeowners who want to borrow against their equity and leave their first mortgage where it is.15
    Least down
    Borrow up to 85% of the home’s value, first and second mortgage combined, on a home you live in, with a 740 score and up to $500,000.15
    Credit score
    680 on this lender’s grid.15
    Mortgage insurance
    None required.15
    Occupancy
    Home you live in, second home or investment property.15
    The catch
    This lender’s version is a second mortgage with a 15- or 30-year term, from $150,000 to $1,000,000.15

  • DSCR (investment property)

    One lender’s matrix

    Who it’s for
    Investors qualified on how well the property’s rent covers its payment (the debt service coverage ratio), as a business-purpose loan.14
    Least down
    20% (80% loan-to-value) with a 680 score on a loan up to $1.5 million, when the rent covers the payment (a ratio of 1.00 or better).14
    Credit score
    620 on this lender’s grid, at 65% loan-to-value.14
    Mortgage insurance
    None required.14
    Occupancy
    Investment property only.14
    The catch
    Someone on the loan needs 12 months of owning and managing rentals unless the rent more than covers the payment or the lender’s waiver applies (a 680 score, no late housing payments in 12 months, and owning your current home). A prepayment penalty of 1 to 5 years is available where state law allows.14

  • Bank statement

    One lender’s matrix

    Who it’s for
    Self-employed clients who own 25% or more of their business, qualified on 12 months of bank statements, or 24.14
    Least down
    10% (90% loan-to-value) on a home you live in, with a 720 score, a loan up to $1.5 million and a debt-to-income ratio up to 43%.14
    Credit score
    620 on this lender’s grid, at 75% loan-to-value.14
    Mortgage insurance
    None required.14
    Occupancy
    Home you live in, second home or investment property.14
    The catch
    Two years self-employed in the same business (one to two years can work with extra conditions), and a letter from a CPA, enrolled agent or licensed tax preparer.14

  • Non-QM (1099, asset-based and more)

    One lender’s matrix

    Who it’s for
    Clients whose income is documented outside agency rules: 1099s, assets you own, or a profit-and-loss statement.14
    Least down
    10% (90% loan-to-value) on a home you live in, with a 720 score and a loan up to $1.5 million. Qualifying on a profit-and-loss statement tops out at 80%.14
    Credit score
    620 on this lender’s grid, with a lower loan-to-value.14
    Mortgage insurance
    None required.14
    Occupancy
    Home you live in, second home or investment property.14
    The catch
    A loan that Fannie Mae or Freddie Mac would buy is not eligible for these programs.14

  • Foreign national

    One lender’s matrix

    Who it’s for
    Clients who neither live nor work in the U.S., buying or refinancing an investment property, or a second home qualified on their assets.14
    Least down
    25% (75% loan-to-value) on an investment property loan up to $1.5 million, when the rent covers the payment. 30% on a second home.14
    Credit score
    No U.S. credit score required. Without one, the loan is underwritten as if the score were 680.14
    Mortgage insurance
    None required.14
    Occupancy
    Investment property, or a second home when the loan is qualified on assets.14
    The catch
    12 months of reserves on every loan and no gift funds. When the rent qualifies the loan, it has to cover at least 90% of the payment.14

  • Reverse mortgage (HECM)

    HUD rule

    Who it’s for
    Homeowners 62 and older who want to use their home’s equity with no monthly mortgage payment. The 2026 maximum claim amount is $1,249,125.16,17
    Least down
    Any existing mortgage must be paid off at closing, from the reverse mortgage or your own money. Buying with one (HECM for Purchase) takes cash for the difference.19,16
    Credit score
    No minimum score. The lender reviews whether you can keep paying taxes and insurance, and may set money aside for them.16
    Mortgage insurance
    FHA charges 2% of the maximum claim amount upfront, plus 0.50% a year on the loan balance.16
    Occupancy
    Your principal residence, the home you live in most of the year. Counseling with a HUD-approved counselor comes first.16,19
    The catch
    You keep paying property taxes, insurance and HOA dues, and leaving them unpaid can make the loan come due. It also comes due when no one on it lives there any more, and no one on it is personally liable for the balance.16,18

Each loan in plain English

Conventional

Conventional is the loan most clients picture first. It covers loans up to the conforming limit, the size Fannie Mae and Freddie Mac buy, which FHFA set at $832,750 for one unit in most of the country in 2026. Fannie Mae’s Eligibility Matrix allows 3% down on a fixed-rate, one-unit home you will live in when at least one person on the loan is a first-time buyer, or when the loan is a HomeReady loan or is paired with a Community Seconds, and 5% down otherwise on a home you live in. Fannie Mae sets no minimum credit score for a loan approved through its automated system, while a manually underwritten fixed-rate loan needs 620. Under Freddie Mac’s guide, mortgage insurance is required above 80% loan-to-value, meaning less than 20% down, and the coverage you pay for can be cancelled under the Homeowners Protection Act. On a file like this I would look at how much you want to put down, because the 3% option is for fixed-rate, one-unit loans and is not available on high-balance loans.

See live Conventional pricing in Rate & Best Fit →

FHA

FHA is for a home you live in, whether you are buying or refinancing, and HUD’s Handbook 4000.1 allows credit scores down to 500. With a score of 580 or higher the minimum down payment is 3.5%, and with a score from 500 to 579 it is 10%. FHA loans carry mortgage insurance: an upfront premium of 1.75% of the base loan, plus an annual premium, which is 0.55% with 3.5% down on a 30-year loan up to $726,200. With less than 10% down that annual premium lasts as long as the loan does, and with 10% or more down it ends after 11 years. At least one person on the loan moves in within 60 days and plans to stay at least a year. On an FHA file I would look at how much you plan to put down, since that decides how long the annual premium lasts.

See live FHA pricing in Rate & Best Fit →

VA

VA is for veterans, service members and some surviving spouses, and a Certificate of Eligibility proves the eligibility. VA requires no down payment unless the price is above the appraised value or the loan has graduated payments, and VA sets no minimum credit score. Instead of mortgage insurance there is a one-time funding fee, 2.15% of the loan on first use with less than 5% down, lower with more down, and waived for veterans receiving VA disability compensation. VA also checks residual income, the money left each month after the bills, and a shortfall alone can stop a loan. The veteran certifies they intend to personally occupy the home. On a VA file I would look at your residual income, because VA checks it on top of everything else.

See live VA pricing in Rate & Best Fit →

Jumbo

Jumbo means a loan above the conforming limit: more than $832,750 for one unit in most of the country in 2026, and more in high-cost counties, according to FHFA. Fannie Mae and Freddie Mac cap the loans they buy at that limit, so the down payment, score and reserve rules on a jumbo are each lender’s own. That is why the table says “Set by each lender” in those rows instead of quoting one number that would only be true for one of them. Jumbo is priced in Rate & Best Fit, so you can see current options for your own loan amount there.

See live Jumbo pricing in Rate & Best Fit →

HELOC or second mortgage

A HELOC or second mortgage lets you borrow against the equity in your home and leave your first mortgage where it is. The figures here come from one lender’s matrix, the Simple Seconds guidelines from Luxury Mortgage Corp., version 3.0 dated May 12, 2026, and not from a rule every lender follows. That lender’s version is a second mortgage with a 15- or 30-year term, from $150,000 to $1,000,000. It allows borrowing up to 85% of the home’s value, first and second mortgage combined, on a home you live in, with a 740 score and up to $500,000, and its credit grid starts at 680. No mortgage insurance is required, and the home can be one you live in, a second home or an investment property. On a file like this I would look at your first mortgage balance and the home’s value together, since the limit is set on both loans combined.

Not in the online pricing tool. Call Jeff at (843) 765-0000

DSCR (investment property)

A DSCR loan qualifies an investment property on how well its rent covers its payment, which is the debt service coverage ratio, and it is a business-purpose loan. The figures here come from one lender’s matrix, Luxury Mortgage Corp.’s Simple Access guidelines, version 9.2, revised July 31, 2026. That lender allows 20% down (80% loan-to-value) with a 680 score on a loan up to $1.5 million, when the rent covers the payment with a ratio of 1.00 or better. Its credit grid starts at 620, at 65% loan-to-value, with no mortgage insurance and investment property only. Someone on the loan needs 12 months of owning and managing rentals unless the rent more than covers the payment or the lender’s waiver applies (a 680 score, no late housing payments in 12 months, and owning your current home), and a prepayment penalty of 1 to 5 years is available where state law allows. On this kind of file I would look at the rent against the payment first.

Not in the online pricing tool. Call Jeff at (843) 765-0000

Bank statement

A bank statement loan is for self-employed clients who own 25% or more of their business and want to qualify on 12 months of bank statements, or 24. The figures here come from one lender’s matrix, Luxury Mortgage Corp.’s Simple Access guidelines, version 9.2, revised July 31, 2026. That lender allows 10% down (90% loan-to-value) on a home you live in, with a 720 score, a loan up to $1.5 million and a debt-to-income ratio up to 43%. Its credit grid starts at 620, at 75% loan-to-value, with no mortgage insurance, and the home can be one you live in, a second home or an investment property. The lender needs two years self-employed in the same business (one to two years can work with extra conditions) and a letter from a CPA, enrolled agent or licensed tax preparer. On a file like this I would look at how long you have been in your current business.

Not in the online pricing tool. Call Jeff at (843) 765-0000

Non-QM (1099, asset-based and more)

Non-QM is for clients whose income is documented outside agency rules, such as 1099s, assets you own or a profit-and-loss statement. The figures here come from one lender’s matrix, Luxury Mortgage Corp.’s Simple Access guidelines, version 9.2, revised July 31, 2026. That lender allows 10% down (90% loan-to-value) on a home you live in, with a 720 score and a loan up to $1.5 million, though qualifying on a profit-and-loss statement tops out at 80%, and its credit grid starts at 620 with a lower loan-to-value. No mortgage insurance is required, and the home can be one you live in, a second home or an investment property. A loan that Fannie Mae or Freddie Mac would buy is not eligible for these programs, so on a file like this I would look first at whether an agency loan already fits.

Not in the online pricing tool. Call Jeff at (843) 765-0000

Foreign national

A foreign national loan is for clients who neither live nor work in the U.S. and are buying or refinancing an investment property, or a second home qualified on their assets. The figures here come from one lender’s matrix, Luxury Mortgage Corp.’s Simple Access guidelines, version 9.2, revised July 31, 2026. That lender allows 25% down (75% loan-to-value) on an investment property loan up to $1.5 million when the rent covers the payment, and 30% down on a second home. It requires no U.S. credit score, and underwrites the loan as if the score were 680 when there is none. No mortgage insurance is required. The lender also requires 12 months of reserves on every loan and allows no gift funds, and when the rent qualifies the loan it has to cover at least 90% of the payment. On this kind of file I would look at the reserves and the rent together.

Not in the online pricing tool. Call Jeff at (843) 765-0000

Reverse mortgage (HECM)

A reverse mortgage, in the form of HUD’s Home Equity Conversion Mortgage (HECM), is for homeowners 62 and older who want to use their home’s equity with no monthly mortgage payment, and I originate them. HUD set the 2026 maximum claim amount at $1,249,125. Any existing mortgage has to be paid off at closing, from the reverse mortgage or your own money. There is no minimum credit score, though the lender reviews whether you can keep paying taxes and insurance and may set money aside for them. FHA charges 2% of the maximum claim amount upfront, plus 0.50% a year on the loan balance. The home has to be your principal residence, the home you live in most of the year, and counseling with a HUD-approved counselor comes first. You keep paying property taxes, insurance and HOA dues, and leaving them unpaid can make the loan come due. It also comes due when no one on it lives there any more. No one on the loan is personally liable for the balance.

Not in the online pricing tool. Call Jeff at (843) 765-0000

Common questions

What is the minimum credit score for an FHA loan?

HUD’s Handbook 4000.1 sets the floor at a 500 credit score, and a score below 500 is not eligible for FHA at all. With a score of 580 or higher the minimum down payment is 3.5%, and with a score from 500 to 579 it is 10%. A lender can set a higher minimum score than HUD does.

How much down payment do you need for a conventional loan?

Fannie Mae’s Eligibility Matrix allows 3% down on a fixed-rate, one-unit home you will live in when at least one person on the loan is a first-time buyer, or when the loan is a HomeReady loan or is paired with a Community Seconds, and 5% down otherwise on a home you live in. The 3% option is not available on high-balance loans. The same matrix allows up to 97% of the price on a home you live in, up to 90% on a second home and up to 85% on an investment property for a one-unit purchase.

Does a VA loan require a down payment or a minimum credit score?

VA’s Lenders Handbook says VA requires no down payment unless the price is above the appraised value or the loan has graduated payments, and VA sets no minimum credit score. Instead of mortgage insurance there is a one-time funding fee, 2.15% of the loan on first use with less than 5% down, lower with more down, and waived for veterans receiving VA disability compensation. An individual lender can add requirements of its own.

When is mortgage insurance required on a conventional loan?

Freddie Mac’s Seller/Servicer Guide requires mortgage insurance above 80% loan-to-value, which means less than 20% down. Coverage you pay for can be cancelled under the Homeowners Protection Act.

What makes a mortgage a jumbo loan?

A loan is a jumbo when it is larger than the conforming loan limit, which FHFA sets each year and which is higher in high-cost counties. The 2026 one-unit limit for most of the country is in the jumbo row of the table above. Fannie Mae and Freddie Mac cap the loans they buy at the limit, so the down payment, score and reserve rules on a jumbo are each lender’s own.

What is a DSCR loan?

Luxury Mortgage Corp.’s Simple Access guidelines, version 9.2, describe a DSCR loan as a business-purpose loan on an investment property, qualified on how well the property’s rent covers its payment. That lender allows 20% down with a 680 score when the rent covers the payment with a ratio of 1.00 or better, and its credit grid starts at 620 at 65% loan-to-value. This is one lender’s matrix, not a rule every lender follows.

Who can get a reverse mortgage?

HUD’s Handbook 4000.1 covers the Home Equity Conversion Mortgage (HECM) for homeowners 62 and older, on the principal residence they live in most of the year. Counseling with a HUD-approved counselor comes first, and any existing mortgage has to be paid off at closing, from the reverse mortgage or your own money. HUD sets no minimum credit score, though the lender reviews whether you can keep paying property taxes and insurance.

Sources

  1. Fannie Mae Eligibility Matrix. EM-01 (standard DU eligibility) and EM-07 note 1, updated August 5, 2026 singlefamily.fanniemae.com
  2. Fannie Mae Selling Guide B2-1.3-01, Purchase Transactions. revised November 5, 2025 selling-guide.fanniemae.com
  3. Fannie Mae Selling Guide B3-5.1-01, General Requirements for Credit Scores. revised April 22, 2026 selling-guide.fanniemae.com
  4. Freddie Mac Seller/Servicer Guide 4701.1, Mortgage insurance. revised February 4, 2026 guide.freddiemac.com
  5. Freddie Mac Seller/Servicer Guide 4203.1, maximum LTV ratios and maximum original loan amounts. revised August 5, 2026 guide.freddiemac.com
  6. FHFA, Conforming Loan Limit Values for 2026. news release, November 25, 2025 fhfa.gov
  7. HUD Handbook 4000.1 II.A.1.b, General Mortgage Insurance Eligibility. Update 17, section revised June 27, 2025 hud.gov
  8. HUD Handbook 4000.1 II.A.2.b and II.A.2.c, Loan-to-Value Limits and Required Investment. Update 17, sections revised February 16, 2021 and September 14, 2015 hud.gov
  9. HUD Handbook 4000.1 Appendix 1.0, Mortgage Insurance Premiums. Update 17, revised March 20, 2023 hud.gov
  10. VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, sections 3.1 and 3.5. change date May 14, 2024 knowva.ebenefits.va.gov
  11. VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, sections 2.1 and 2.5. change date March 28, 2019 knowva.ebenefits.va.gov
  12. VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, sections 4.7 and 4.10. section 4.7 change date August 24, 2026; section 4.10 February 22, 2019 knowva.ebenefits.va.gov
  13. VA, Funding fee and closing costs. funding fee table effective April 7, 2023 va.gov
  14. Luxury Mortgage Corp., Simple Access Product Suite Underwriting Guidelines (Wholesale). version 9.2, dated July 8, 2026, revised July 31, 2026: sections 1.2, 5.2, 5.3, 5.4, 5.5, 10.5, 10.12, 10.15 and Chapter 13, Exhibits B, C and D
  15. Luxury Mortgage Corp., Simple Seconds Product Suite Underwriting Guidelines (Wholesale). version 3.0, dated May 12, 2026: sections 4, 10.2, 10.14 and 10.16, Exhibit A
  16. HUD Handbook 4000.1, Home Equity Conversion Mortgage sections. transmittal October 31, 2023, HECM sections effective April 29, 2024 hud.gov
  17. HUD Mortgagee Letter 2025-22, 2026 Home Equity Conversion Mortgage (HECM) Limits. December 11, 2025, for case numbers assigned January 1 through December 31, 2026 hud.gov
  18. 24 CFR 206.27, Mortgage provisions (HECM). Electronic Code of Federal Regulations, current ecfr.gov
  19. CFPB, Can anyone take out a reverse mortgage loan?. Ask CFPB consumerfinance.gov

Educational information, not a loan approval or commitment to lend. Agency rows show the agency's own rule; lenders may add stricter requirements of their own. Lender rows show one lender's published matrix on the date named, which can change. Jeff Moran, NMLS #483943, through C2 Financial Corporation, NMLS #135622. Equal Housing Opportunity.