Your Guide to Four Common Home Loans

4 common home loans

Have you ever wondered just what the difference is between a Conventional, FHA, USDA and VA loan? We broke down the information for each one, and what you’d expect to pay for a $200,000 loan with a 30 year fixed interest rate.


# 1 – Conventional Loan

Conventional loans are the easiest to remember because they’re just that – conventional. They’re the best type of loan for a borrower with impeccable credit who wants a low interest rate. There are no income, area, or occupancy requirements with these loans.

20% Down Payment | $40,000
Interest Rate | 3.75%
Total Cash to Close | $44,705
Loan Amount | $160,000
Conventional Loan Monthly Payment | $983


# 2 – FHA (Federal Housing Administration) Loan

FHA loans allow smaller down payments, help with lower credit, don’t ask for reserve cash in the bank, and offer low interest rates. FHA loans are know for their first-time home buyer program, but they offer other loans as well. Mortgage insurance is necessary to secure the loan.

3.5% Down Payment | $7,000
Interest Rate | 3.25%
Total Cash to Close | $11,474
Loan Amount | $196,377
Conventional Loan Monthly Payment | $1320


# 3 – USDA (U.S. Department of Agriculture) Mortgage Program

USDA Loans are available in certain areas, and have income restrictions. No down payment is required, neither is private mortgage insurance. USDA loans are typically for applicants with low income and credit deficiencies.

No Down Payment | $0
Interest Rate | 3.25%
Total Cash to Close | $4,858
Loan Amount | $204,051
Conventional Loan Monthly Payment | $1205


# 4 – VA (Veteran’s Affairs) Loan

VA Loans are specifically for U.S. veterans. No down payment is required, and the credit rules are forgiving. The VA guarantees a portion of the loan to the lender.

No Down Payment | $0
Interest Rate | 3.25%
Total Cash to Close | $4,858
Loan Amount | $204,300
Conventional Loan Monthly Payment | $1139


If you’d like more information about the loans featured here, or would like to know your options for mortgages in Central Florida, we recommend Rayce Robinson of Fidelity Funding Mortgage Corp. Rayce is prompt, knowledgable, and happy to assist you.