Before you shop for a house, you have to pick a loan — and the loan decides your down payment, your monthly payment, and which houses you can even make an offer on. Here is the short list, in plain English. If you want me to run your exact numbers, call me. That is what I do all day.
FHA — 3.5% down, 580 credit
This is the loan most first-time buyers use. You can put 3.5% down with a 580 credit score, and for 2026 the FHA limits go up to $1,249,125 in Los Angeles and Orange County. The catch is mortgage insurance: 1.75% upfront (usually rolled into the loan) and about 0.55% a year — and on most FHA loans it never drops off, so people refinance into a conventional loan once they have 20% equity. Read the full breakdown: What is an FHA Loan?
Conventional — as little as 3% down
A conventional loan is not backed by a government program. First-time buyers can put as little as 3% down, and a 620 credit score or better is the usual minimum to qualify. Higher scores get better rates, and you can see where you stand on the Credit Score Checklist. The big advantage: private mortgage insurance drops off once you reach 20% equity, so your payment goes down over time. Read: What is a Conventional Loan?
VA — $0 down for those who served
For eligible veterans, active-duty service members, and some surviving spouses, VA is the best deal in the book: $0 down, no monthly mortgage insurance, and the seller can help with your closing costs. There is a one-time funding fee unless you are exempt for a service-connected disability. Read: What is a VA Loan?
Down payment assistance
If the down payment is what is stopping you, this is where to look. CalHFA MyHome covers up to 3.5% of the price on an FHA loan (3% on conventional), and GSFA Platinum goes up to 5% — and GSFA does not even require you to be a first-time buyer. The money is real, but the rules are picky, so start with the Down Payment Assistance page and the Down Payment Assistance Finder.
Other options worth knowing
- Bank statement / P&L loans. If you are self-employed and your tax returns do not show your real income, we can use bank statements or a profit-and-loss statement instead. These are called non-QM loans.
- Alternate loan programs. Manufactured homes, condos, and new construction all have their own rules. Read: Alternate Loan Programs
- Jumbo. When the price goes above the conforming loan limits for your county, you are in jumbo territory — bigger down payment, more reserves, and usually a slightly higher rate.
Run your numbers
Do not guess. Use the Home Affordability Calculator to see what price you can actually carry, and the Home Mortgage Calculator to see the monthly payment on the price you are shopping. Those are the same numbers I use when I pre-approve you.
If you are not sure which one fits you, that is the first question I ask on a call — (714) 705-4013 or dat@elendingteam.com. You can also listen to the podcast while you decide, then start your pre-approval when you are ready.