Compare Mortgage Loans 2026: FHA vs VA vs USDA vs Conventional
Updated: September 16, 2026 | By James Chen | Editorially reviewed against primary government and agency sources
The loan type decides your down payment, your monthly cost, and how much house you can actually afford. Here is the side-by-side that matters β rates are the August 2026 averages (Freddie Mac PMMS).
| Loan | Down | PMI / insurance | Credit | Income cap | 30Y rate |
|---|---|---|---|---|---|
| π¦ Conventional | 3% (5% typical) | Yes, removable at 20% equity | 620+ | None | 6.625% |
| ποΈ FHA | 3.5% | MIP: 1.75% upfront + 0.55%/yr (life of loan) | 580+ | None | 6.50% |
| ποΈ VA | 0% | None (funding fee 1.25-3.3%) | 620+ (lender flex) | None | 6.125% |
| πΎ USDA | 0% | Guarantee fee 1% upfront + 0.35%/yr | 640+ | 115% of area median | 6.40% |
Rates: Freddie Mac PMMS 2026-08 (30Y fixed national averages by loan type). Your quote depends on credit, location, and lock timing. Monthly examples assume a $350,000 purchase with taxes and insurance included.
π¦ Conventional: $2,146/mo on $350K, 10% down
Best for: Strong credit + 20% down
Yes, removable at 20% equity
Run the numbers βποΈ FHA: $2,102/mo on $350K, 3.5% down
Best for: Low down payment, credit below 620
MIP: 1.75% upfront + 0.55%/yr (life of loan)
Run the numbers βποΈ VA: $1,700/mo on $350K, 0% down
Best for: Veterans & service members
None (funding fee 1.25-3.3%)
Run the numbers βπΎ USDA: $1,757/mo on $350K, 0% down
Best for: Rural buyers with income limits
Guarantee fee 1% upfront + 0.35%/yr
Run the numbers βWhere to start
- β’ Run your real budget through the affordability calculator first β the loan type comes after the budget.
- β’ Check conventional vs FHA and VA loan guide for deeper dives.
- β’ Dig into each type: VA loans Β· FHA loans Β· USDA loans
- β’ Compare rate quotes from 2-3 lenders β the loan type matters less than the rate you actually get.
Methodology & Assumptions
How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.
Formula
- Side-by-side amortization: each option's monthly PITI (rate \u00d7 term \u00d7 loan amount), total interest over the full term, and total cost including fees. The comparison highlights which option is cheaper at your expected holding period.
Assumptions
- Both loans assumed same taxes/insurance unless entered differently.
- Points are added to costs (not rolled into rate).
- Holding period matters: the lower-rate option wins long-term; the lower-fee option can win short-term.
Limitations
- APR differences beyond rate (points, fees) are modeled as costs β verify lender quotes.
- Prepayment behavior changes the comparison materially.
- Jumbo and high-LTV pricing tiers are not auto-detected.
Worked Example
- $300,000, 30yr: 6.625% ($1,921/mo, $391K interest) vs 6.375% with 1 point ($2,160 cost): payment $1,871 β point pays back in ~28 months, then saves $50/mo.
Sources
- Freddie Mac PMMS
- CFPB mortgage tools
Frequently Asked Questions
Methodology & Assumptions
How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.
Formula
- Side-by-side amortization: each option's monthly PITI (rate \u00d7 term \u00d7 loan amount), total interest over the full term, and total cost including fees. The comparison highlights which option is cheaper at your expected holding period.
Assumptions
- Both loans assumed same taxes/insurance unless entered differently.
- Points are added to costs (not rolled into rate).
- Holding period matters: the lower-rate option wins long-term; the lower-fee option can win short-term.
Limitations
- APR differences beyond rate (points, fees) are modeled as costs β verify lender quotes.
- Prepayment behavior changes the comparison materially.
- Jumbo and high-LTV pricing tiers are not auto-detected.
Worked Example
- $300,000, 30yr: 6.625% ($1,921/mo, $391K interest) vs 6.375% with 1 point ($2,160 cost): payment $1,871 β point pays back in ~28 months, then saves $50/mo.
Sources
- Freddie Mac PMMS
- CFPB mortgage tools