Loan Program Calculators

Choosing the Right Loan Program

The loan program you choose determines three of the biggest costs in a mortgage: your down payment, your interest rate, and your insurance premiums. Picking the wrong program can cost tens of thousands of dollars over the life of the loan, while the right one can dramatically lower your upfront and monthly costs. The four main options are conventional, FHA, VA, and USDA loans, each designed for different financial situations.

Conventional loans offer the most flexibility. They require 3-20% down and private mortgage insurance (PMI) until you reach 80% loan-to-value, at which point PMI drops off. FHA loans accept down payments as low as 3.5% and approve borrowers with credit scores down to 580, but the trade-off is mandatory mortgage insurance premiums (MIP) for the full 30-year term. VA loans are available exclusively to veterans, active-duty members, and eligible spouses, offering 0% down and no PMI at all. USDA loans also require no down payment but are limited to eligible rural and suburban areas with household income caps. Use our mortgage payment calculators to see how each program affects your monthly bill.

The numbers make the differences clear. On a $300,000 home, a conventional loan with 5% down requires $15,000 upfront plus PMI of about $150/month. A VA loan needs $0 down and no PMI, saving over $20,000 in the first year alone. An FHA loan splits the difference with $10,500 down (3.5%) but adds an upfront MIP of $5,250 plus monthly MIP around $140. Before you compare programs, figure out how much house you can afford with our home affordability calculators, then use the loan program calculators here to find the best fit for your budget and eligibility.