Loans / Government and Conventional
FHA, USDA, Conventional
and Jumbo Mortgages
HP Mortgage also places traditional loans: FHA, USDA, VA, conventional and jumbo. FHA is the most flexible on credit, with approvals from a 580 credit score at 3.5% down. As a broker, HP Mortgage compares lenders on each of these programs instead of offering one bank's version.
Reviewed by Kevin Danowitz, NMLS #924478
Last updated November 5, 2026
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. The insurance lets lenders approve borrowers with lower credit scores and smaller down payments than a conventional loan allows.
FHA loan requirements
| Requirement | FHA |
|---|---|
| Minimum credit score | 580 |
| Minimum down payment | 3.5% |
| Mortgage insurance | Upfront premium plus a monthly premium |
| Occupancy | Primary home |
| Recent credit | On-time payments over the past 6 to 12 months |
Licensed by the California Department of Financial Protection and Innovation, Florida Office of Financial Regulation, New Jersey Department of Banking and Insurance, Pennsylvania Department of Banking and Securities, Texas Department of Savings and Mortgage Lending, and Virginia State Corporation Commission.
Credit history matters more than the score alone at the low end. Kevin reviews your full report and tells you what needs to change, if anything, before you apply.
What is an FHA 203(k) loan?
An FHA 203(k) loan rolls the cost of repairs or renovation into the purchase or refinance mortgage, so one loan covers the home and the work. It follows FHA's credit and down payment rules.
FHA vs conventional: which is better?
| FHA | Conventional | |
|---|---|---|
| Backed by | Federal Housing Administration | Private lenders, sold to Fannie Mae or Freddie Mac |
| Minimum credit | 580 | Higher than FHA; set by Fannie Mae and Freddie Mac |
| Minimum down | 3.5% | 3% to 5% on most programs; 20% to avoid mortgage insurance |
| Mortgage insurance | Required on every FHA loan | Required under 20% down, removable once you reach 20% equity |
| Rates | Typically a little below conventional | Market baseline |
| Best for | Lower credit scores, smaller down payments | Strong credit and 20% down |
What is a conventional loan?
A conventional loan is offered by private lenders without government insurance, and most are sold to Fannie Mae or Freddie Mac. Terms run 10, 15, 20 or 30 years. With 20% down you avoid mortgage insurance.
What is a jumbo loan?
A jumbo loan is larger than the conforming limit Fannie Mae and Freddie Mac will buy. Guidelines on down payment, reserves and income are stricter than a conventional loan's. Self-employed borrowers who need a large loan can also look at bank statement and other non-QM programs, which skip tax returns.
What is a USDA loan?
A USDA loan is insured by the U.S. Department of Agriculture for moderate- and low-income buyers in eligible rural areas. It requires no down payment and carries a low monthly guarantee fee.
VA loans
Zero-down loans for active-duty service members, veterans and eligible surviving spouses. See VA mortgage loans.
Frequently asked questions
What credit score do I need for an FHA loan?
580 for the 3.5% down payment.
How much do I need to put down on an FHA loan?
3.5% with a 580 or higher credit score.
Do FHA loans have mortgage insurance?
Yes. FHA charges an upfront premium and a monthly premium.
Is FHA or conventional better?
FHA is better for lower credit scores and small down payments. Conventional is better with strong credit and 20% down, because you avoid mortgage insurance.
What is a 203(k) loan?
An FHA loan that rolls renovation costs into the mortgage.
Reviewed by
Kevin Danowitz
Founder, HP Mortgage LLC · NMLS #924478
In mortgage lending since 2003, starting as a loan officer at Chase Manhattan. Founded HP Mortgage in 2015 to place self-employed and non-QM borrowers the big banks turn away. Consistently one of the top-producing brokers with his wholesale lenders since 2017.