Last reviewed: 3 October 2026
Home › Mortgage help › Conventional, FHA, VA and USDA loans
Conventional, FHA, VA and USDA loans: how they differ
Most US home loans fall into a few families. This page explains how the CFPB describes conventional loans and the FHA, VA and USDA government programs. It describes each the same way. It does not recommend or rank any of them.
What this term means: A conventional loan is a mortgage with no government insurance or guarantee. A government-backed loan, in this page’s wording, is one the government insures or guarantees: FHA, VA or USDA Rural Housing Service. The CFPB’s own definition of a conventional loan names those three programs as the ones outside it.[2]
What the CFPB says about each
The table reports only what the CFPB pages say. Where a page is silent on a row, the cell says so.
| Conventional | FHA | VA | USDA Rural Housing Service | |
|---|---|---|---|---|
| Who runs the program | No government program: any mortgage loan not insured or guaranteed by the government.[2] | The Federal Housing Administration, which is part of the Department of Housing and Urban Development (HUD).[3] | The Department of Veterans Affairs (VA).[4] | The Rural Housing Service (RHS), which is part of the U.S. Department of Agriculture.[5] |
| What the government does | Nothing, by definition. | Provides mortgage insurance to FHA-approved lenders to protect them against losses if the homeowner defaults. The cost of the insurance is passed along to the homeowner.[3] | Sets the rules for loan qualification, arranges the terms under which mortgages may be offered, and guarantees any loan made under the program.[4] | Both lends directly to qualified borrowers and guarantees loans that meet its program requirements made by approved lenders.[5] |
| Who makes the loan | The CFPB pages used here do not say. | FHA-approved lenders. HUD also provides a list of qualified FHA lenders.[3] | Private lenders: VA loans are underwritten, closed and serviced entirely by private lenders, not by the VA. Not all lenders participate in the VA home loan program.[4] | The RHS itself, or approved lenders for guaranteed loans.[5] |
| Who the CFPB’s loan-options page says it is for | The loan-options page states no audience for conventional loans; it defines them by having no government program. | The loan-options page gives a down payment and credit-score remark for FHA. Like its comparisons of conventional and FHA loans, this page does not repeat it.[1] | “For veterans, servicemembers, or surviving spouses.”[1] | “For low- to middle-income borrowers in rural areas.”[1] |
| Qualifying standards the CFPB describes | The CFPB pages used here state no qualifying standards for conventional loans on their own. The loan-options page compares them with FHA loans; this page does not repeat that comparison.[1] | The CFPB describes FHA qualifying standards only by comparison with conventional loans; this page does not repeat that comparison.[3] | The VA can issue a Certificate of Eligibility (COE). Applicants must go through the application process and provide information related to repayment ability, like any other loan applicant.[4] | The program offers loans to help low- to moderate-income rural residents buy, build and repair homes. The CFPB points to RHS or USDA for whether you might qualify.[5] |
| Down payment | The CFPB pages used here do not say. It gives no minimum down payment figure for conventional, FHA or USDA loans. | The CFPB pages used here give no minimum down payment figure for FHA loans. | Some VA loans are available with no down payment, as long as the sales price does not exceed the appraised value.[4] | The CFPB pages used here do not say. |
| Insurance and fees the CFPB names | The CFPB pages used here do not say. | Mortgage insurance, with its cost passed along to the homeowner.[3] | No private mortgage insurance (PMI) requirement. Most borrowers are required to pay a VA funding fee (the CFPB’s stated amount is in the note below the table). The program limits the closing costs you may be charged and gives you the right to prepay without a penalty.[4] | The CFPB pages used here do not say. |
| Other points the CFPB makes | Conventional loans can be conforming or non-conforming.[2] | FHA administers a program of loan insurance to expand homeownership opportunities.[3] | Eligibility can generally be restored after you have bought and sold a home financed with a VA loan. VA-guaranteed loans are available for manufactured homes, though maximum amounts vary. The VA may be able to offer assistance with temporary financial difficulties.[4] | The CFPB page gives no further program detail. |
| Where the CFPB points for details | The CFPB page names no agency. | HUD’s website, HUD at (800) 225-5342, or GovLoans.gov.[3] | The Department of Veterans Affairs website or (800) 827-1000, and the CFPB’s “Find a Housing Counselor” tool.[4] | RHS or USDA online, or (202) 720-2791.[5] |
Note on the VA funding fee. The CFPB’s VA loan page (last modified September 2023) says most borrowers pay a VA funding fee that is “currently between one and three percent of the amount of the loan.”[4] We give that figure here, outside the table, because the CFPB pages used for this guide state no fee figure for the other three loan types. A number in one column alone could be mistaken for a comparison of costs, and it is not one. The amount may have changed since the CFPB page was written, so ask a lender and check the VA’s own page for the current figure.
Our guide to conforming and jumbo loan limits covers the conforming and non-conforming terms in the first column.
What this page leaves out, on purpose
The CFPB pages also make general remarks about how hard each type is to qualify for, about the relative cost of these loan types and about interest rates. This page does not repeat them. Costs and rates depend on the lender, the date and the borrower, and this site does not compare rates or lenders. It also does not say how many borrowers use each type. The comparison here is of structure and stated requirements only.
What all four have in common
The CFPB says a loan has three elements: loan type, loan term and interest rate type.[1] The term and the rate type are separate choices from the loan type; see our guide to fixed-rate and adjustable-rate mortgages.
The CFPB also says that, generally, a lender must document and verify your income, employment, assets, debts and credit history to decide whether you can repay the loan.[1] If the lender does this and the loan follows certain criteria, it may be called a “qualified mortgage.”[1] See the ability-to-repay rule and qualified mortgages.
The CFPB’s page also lists “special programs”: state or local housing agency programs for low- to middle-income borrowers, first-time homebuyers or public service employees, and special purpose credit programs from private lenders.[1] This page does not cover them.
How to verify this yourself
Read the five CFPB pages in the reference list. They are the source for each cell above, and their dates are shown there. Program rules change, so confirm current requirements with the agency that runs the program: HUD for FHA, the Department of Veterans Affairs for VA, and the Rural Housing Service for USDA. A HUD-approved housing counselor can walk through your options without selling you a loan (see how to find one). Our published standard explains how we check individual loan originators; it does not grade loan products, and the Register reports on originators, not on loan types.
What this page does not cover
This page is general information, not financial or legal advice. It does not say which loan type is appropriate for a given borrower; that depends on your own facts and on each program’s rules. It names no lender and sets no rates, fees or lenders side by side. It does not cover loan limits, credit-score or income thresholds, property standards, refinance programs or state programs. The CFPB pages were last modified between September 2023 and February 2026, and the VA funding fee figure may have changed since. This page was last reviewed 3 October 2026.
Your next step
Read the agency page for any program you are asking about. Then ask each lender, in writing, whether you meet that program’s requirements. Return to the Mortgage help library for related guides.