This is the most commonly used type and usually has the best rates. A conventional loan is a 15, 20, or 30-year fixed rate mortgage. The loan can be up to 95% of the purchase price in a purchase transaction or 95% of the appraisal value on a no cash out refinance. This type of loan is for more established borrowers with high credit scores.
Thought of as the first time home loan program but actually available to anyone. The down payment is only 3.5% and is more forgiving of lower credit scores. The interest rates are competitive, however due to the low down payment requirement the monthly mortgage insurance is higher than conventional. The FHA is a part of the Department of Housing and Urban Development and insures residential mortgage loans therefore these loans are government guaranteed.
A USDA Mortgage loan is a 30-year fixed rate mortgage that offers 100% financing with the option of financing all closing costs. The loan can only be used in designated areas & towns, but their definition of rural may be more flexible than you think. There are income limitations.