Conventional loans are not guaranteed by the federal government, so they have stricter requirements to mitigate the risk. If you are in generally good financial standing with a credit score of at least 620 and can offer a substantial down payment, a conventional loan is a great way to avoid PMI (if you put 20% down) and get lower rates for more manageable monthly payments.
FHA loans are issued by lenders like credit unions and banks and insured by the Federal Housing Administration to make homeownership possible for those with poor credit and limited savings for a down payment. While FHA loans do have limits on mortgage amounts and involve certain fees at closing, these loans are easier to qualify for, and they make PMI and loan payments quite affordable.
VA mortgage loans are available exclusively to veterans, military spouses, and service members looking to refinance or purchase a primary residence. They’re easier to qualify for, as they are issued by private lenders and guaranteed by the Department of Veterans Affairs. With a VA loan, you’ll pay $0 down and enjoy uncapped loan amounts, reduced closing costs, lower rates, and no PMI requirements.