FHA, Conventional& USDA loans.
The three most common loan types—and what nobody tells you about choosing between them. We’ll run the numbers on all three and show you exactly what each one costs, monthly and over time.
Side by side
A simplified comparison—your actual best option depends on credit, savings, location, and goals.
| Conventional | FHA | USDA | |
|---|---|---|---|
| Down payment | Low-down-payment options | Low down payment (580+ credit) | No down payment in eligible areas |
| Mortgage insurance | Cancels automatically at 78% of original value (request at 80%) | Life of loan with a smaller down payment; 11 years with a larger one | Upfront guarantee fee plus an annual fee for the life of the loan |
| Upfront MI fee | Usually none | Yes (can be financed) | Yes (can be financed) |
| Property | Most properties | Most properties | Rural / eligible areas only |
| Typical timeline | ~21–30 days | ~21–30 days | ~45 days (dual underwriting) |
| Seller perception | Preferred | Sometimes hesitant | Neutral |
| Debt-to-income | Flexible (automated) | Flexible (automated) | Guideline 29/41; automated approval can allow higher |
More flexibility
than most people realize.
Many buyers think they need a large down payment to avoid mortgage insurance, so they drain their savings to get there. That’s often the wrong move.
Conventional mortgage insurance can be surprisingly affordable, and keeping cash on hand for moving, repairs, or a financial cushion is often smarter than putting every dollar into equity you can’t easily access. Borrower-paid MI cancels automatically at 78% of your original value, and you can request removal at 80%.
Two government options
worth understanding
Both can open doors—and both have trade-offs.
No down payment in eligible rural and suburban areas for buyers who meet income limits—many communities around Raleigh, Wake Forest, and across North Carolina qualify. Check any address on USDA’s eligibility map.
USDA loans go through two rounds of underwriting (lender, then USDA) and typically take about 45 days. Let your seller know up front.
Guideline ratios are 29% housing and 41% total debt; an automated approval can allow higher.
Low down payment with 580+ credit. If your score is below roughly 680, FHA often gives a lower monthly payment than conventional—even with more fees over time.
On most purchases, if the appraisal comes in below the price, you’re not required to proceed—and you keep your earnest money.
Upfront MIP (financed) plus annual MIP—for the life of the loan with a smaller down payment, or 11 years with a larger one.
Common questions
about these loans
It depends on your credit, down payment, and how long you’ll keep the loan. We’ll run all three and show you the monthly and long-term cost side by side.
Often, yes. Our down payment assistance programs pair with FHA, conventional, and USDA loans.
Eligibility is set by address and household income. Send us the address and we’ll check it for free.
No. We provide a program overview and quote with no credit pull and no obligation. Credit is only checked when you decide to move forward.
Not sure which loan
is right for you?
Want the full picture—your real rate, payment, and what you qualify for? The full application gets you there, usually within 24 hours. Just want a ballpark? Get a free quote.
Professor Lending LLC is a mortgage broker, not a lender or loan servicer. Company NMLS #2644699 (www.nmlsconsumeraccess.org). All loans are subject to lender guidelines, credit approval, property eligibility, and underwriting; not all applicants will qualify. This page does not quote rates or loan terms and is not a commitment to lend. Program availability varies by state and lender and may change without notice. Professor Lending LLC is licensed as a mortgage broker in each state in which it originates loans; license information is available at NMLS Consumer Access. Equal Housing Opportunity.