Most first-time buyers encounter four broad categories of mortgage, and understanding the shape of each — not which one is "best," since that depends entirely on your situation — makes every later conversation with a lender easier to follow.
Conventional loans aren't insured by a government agency; they're offered by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac. They can offer competitive terms for buyers with stronger credit, and putting down less than 20% usually means paying private mortgage insurance (PMI) until you build enough equity.
FHA loans are insured by the Federal Housing Administration and are known for more flexible credit requirements and a low minimum down payment for qualifying borrowers — often cited around 3.5%. In exchange, FHA loans require mortgage insurance premiums that, depending on your down payment, can last for the life of the loan.
VA loans are backed by the Department of Veterans Affairs and are available to eligible active-duty service members, veterans, and certain surviving spouses. A well-known feature is that most VA-backed loans don't require a down payment at all for eligible borrowers, though a funding fee and closing costs generally still apply.
USDA loans, backed by the U.S. Department of Agriculture, support buyers purchasing in designated rural and some suburban areas, with income limits based on the area, and can offer up to 100% financing for eligible borrowers. Whether a specific property qualifies depends on its location on the USDA's eligibility map.
This is a map, not a recommendation — the Program Finder elsewhere on this site lists specific, source-verified programs you may want to explore, and a licensed lender is the one who can tell you which loan type actually fits your credit, income, and the property you have in mind.