Conventional, FHA, VA and USDA loans: what the loan-type figures mean
The four loan types in HMDA data, who each one is for, and how to use a lender's loan-type mix to build a shortlist.
Every lender profile on this site shows the share of its loans that were conventional, FHA, VA and USDA. Those are the four loan types in HMDA data, and they differ in who backs the loan, the down payment, mortgage insurance and who can qualify. A lender that makes many loans of the type you need is likely to know that program's rules well. Here is what each type means.
Conventional loans
A conventional loan is any mortgage not insured or guaranteed by a federal agency. Most are conforming loans, which meet the guidelines of Fannie Mae and Freddie Mac and stay within the conforming loan limit that the Federal Housing Finance Agency sets each year (FHFA conforming loan limits); larger loans are called jumbo loans and follow each lender's own rules. Conventional loans generally reward higher credit scores and larger down payments with better pricing.
If you put down less than 20 percent, a conventional loan usually requires private mortgage insurance (PMI). Under the federal Homeowners Protection Act, for most loans you can ask to cancel PMI once your balance reaches 80 percent of the home's original value, and it ends automatically when the balance is scheduled to reach 78 percent, provided you are current on payments.
FHA loans
FHA loans are insured by the Federal Housing Administration, part of the Department of Housing and Urban Development (HUD). They allow lower credit scores and smaller down payments than many conventional loans: under HUD's single-family handbook, borrowers with a credit score of 580 or higher can put down as little as 3.5 percent, and scores from 500 to 579 need at least 10 percent. FHA loans carry an upfront mortgage insurance premium and an annual premium. If you put down less than 10 percent, the annual premium generally lasts for the life of the loan, which is why many FHA borrowers later refinance into a conventional loan. FHA loans also have county-by-county loan limits.
VA loans
VA loans are guaranteed by the Department of Veterans Affairs for eligible veterans, service members and some surviving spouses (VA home loans). VA does not require a down payment in most cases, and there is no monthly mortgage insurance. Most borrowers pay a one-time VA funding fee, which can be financed; veterans receiving VA disability compensation are among those exempt. You need a Certificate of Eligibility, which your lender can usually request for you.
USDA loans
USDA guaranteed loans, from the Department of Agriculture's Rural Development agency, help low- and moderate-income households buy homes in eligible rural and some suburban areas, generally with no down payment. Both the property's location and your household income must qualify; USDA's eligibility site lets you check an address and your income. Fewer lenders make USDA loans, so the loan-type figures on this site are especially useful for finding one.
Reading a lender's loan-type mix
- Mostly conventional: common at banks and credit unions, and at lenders focused on borrowers with strong credit or larger down payments.
- A large FHA share: the lender regularly works with first-time buyers and borrowers with smaller down payments or lower credit scores.
- A meaningful VA share: the lender knows VA's appraisal and eligibility process, which matters if you are a veteran or service member.
- Any USDA loans: the lender is approved for and actively uses the program, which not every lender does.
The figures are shares of the loans each lender made in the HMDA year shown, so a small lender with few loans can show large swings. The Government-backed loans category on this site lists lenders that made at least ten FHA, VA or USDA loans that year.
Other loan features in the data
HMDA also records whether each loan is a first or subordinate lien, whether it is for a site-built or manufactured home, and the number of units in the property. We do not show these on profiles, but they explain some differences between lenders: lenders that do a lot of manufactured-home lending, for example, tend to have smaller average loans. If you need financing for a manufactured home or a two- to four-unit property, ask lenders directly whether they offer it, or explore the full data in the HMDA Data Browser.
Keep in mind that a loan type's share is a share of the lender's own loans. A very large lender can make thousands of VA loans even if VA is only a small percentage of its business, while a small credit union with a high VA share might make only a handful.
Loan purpose matters too
Profiles also show the mix of home purchase, refinancing, cash-out refinancing and home improvement loans. If you are buying, a lender that does a lot of purchase lending is used to contract deadlines and working with agents. If you are refinancing, a lender with a high refinance share is set up for it. Credit unions and banks often make many small home improvement and home equity loans, which also lowers their average loan size.
Next steps
Use the category pages to shortlist lenders that make your loan type in your state, check them on NMLS Consumer Access, and ask at least three for a Loan Estimate on the same day. See our Loan Estimate guide for how to compare them. Program rules, loan limits and fees change; confirm current requirements with the lender and the agency that backs the loan before you apply.
General information only, current as of the date above. The information on Mortgage Lender Data is not financial or legal advice and is not an offer of credit. We are not a lender, mortgage broker or loan originator; we take no applications, pass on no borrower information and recommend no lender. Lending figures come from each lender's HMDA filing for the year shown and describe past lending, not the rate, terms or decision you will get. Compare Loan Estimates from several lenders before you choose. Rules and programs change; check the official sources linked in this guide.