Compare Conventional, VA and FHA, USDA payments
Comparing Loan Types & Payments
Sometimes it helps to look at the four major loan options with some hard, real-world numbers.
For this example, let’s say you’re looking at a $200,000 mortgage with an interest rate of 4.75 percent. We will estimate your property taxes and homeowner’s insurance costs at $260 per month.
Monthly Payment Example:
| Loan type | Minimum credit score | Minimum down payment | Funding Fee | Principal & Interest payment | Mortgage Insurance | Total Monthly payment |
|---|---|---|---|---|---|---|
| FHA | 640 | $7,000 | $3,378 | $1,025 | $139 | $1,424 |
| USDA | 640 | $0 | $2,000 | $1,072 | $59 | $1,391 |
| Conv. | 660 | $10,000 | $0 | $991 | $114 | $1,365 |
| VA | 620 | $0 | $4,300 | $1,066 | $0 | $1,326 |
You can see that VA homebuyers have the lowest monthly mortgage payment given these parameters. But there are advantages and disadvantages to every loan option.
Credit score minimums are going to vary based on the lender, the loan type, and other factors. FHA loans allow for credit scores in the 500s, but you’re more likely to see lenders requiring a 620 or a 640 FICO score for any government-backed loan, whether it’s FHA, USDA, or VA.
