When buying a home, there are basically two types of loans—conventional loans and government loans.
Conventional loans – While there are a wide variety within this category of loans, generally speaking, conventional loans have higher standards for credit scores and require larger down payments. While the standards for qualification are stringent conventional loans offer several benefits such as a shorter approval process, no mortgage insurance for down payments of 20% or more, and they are usually more attractive to sellers than government loans.
Government loans – These loans are backed by the US government, and therefore offer more relaxed qualifications for approval and the upfront cost is usually significantly less than a conventional loan. The process for a government loan is typically longer, and they are potentially less attractive to sellers. There are plenty of great reasons to use a government loan which include FHA loans, USDA loans, and VA loans.
Feel free to use the links provided to learn about each type of loan to see which is appropriate for your situation.