Getting a home loan is not a one-size-fits-all process. Instead, it is a process that involves searching for the best program for your situation and needs. When people need home loans, they usually end up with one of four options. Here are the four loan types that people tend to get most often and a brief explanation of each type.

Conventional Loans

Many people love conventional loans because they offer many benefits. The first benefit is a low-interest rate. Secondly, you might need only 3% down on the purchase. If you put 20% down, though, you can avoid paying private mortgage insurance (PMI). Many people aim for a 20% down payment for this purpose. You cannot finance more than $548,250, though. If you want to buy a house that costs more than this, you will probably need to find a different loan program. One other benefit of a conventional loan is that you can use it to buy any house. You are not limited to houses in certain areas, and you can even use one to finance a second home or investment property.

USDA Loans

The second option you can consider is a USDA loan, which is ideal if you want a home in a rural area. You cannot use USDA loans for home purchases in cities. They have rules relating to the location and type of homes you can purchase with these loans. One of the main reasons people turn to these loans is for the 0% down payment options they offer. You can buy a house without putting money down, and you will not need a perfect credit score to be eligible.

FHA Loans

A lot of people also like FHA loans. These loans are often easier to qualify for as you do not need a lot of money down, perfect credit, or an excellent financial situation. In fact, people often seek FHA loans when they have no credit on record. FHA loans offer competitive interest rates, but they also require paying fees that last for the entire mortgage.

VA Loans

Finally, you might be interested in a VA loan if you have military history. VA loans also offer 0% down loans to qualifying individuals. With a VA loan, you receive a competitive interest rate and pay a one-time fee to the Department of Veterans Affairs.

If you want to get a home loan, you will probably choose one of these options. You can talk to a lender to learn more about which is the best one for you.