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Government-backed loans

Government-backed mortgages are made by private lenders but insured or guaranteed by a federal agency. That backing lets lenders accept smaller down payments and lower credit scores than many conventional loans.

FHA Loans in 2026: Requirements, Limits, MIP and Who Qualifies

To qualify for an FHA loan in 2026 you generally need a credit score of at least 580 for 3.5% down (500-579 needs 10% down), a steady income that fits HUD's debt-to-income limits, a home you will live in, a loan within your county's FHA limit, and US citizenship or lawful permanent residence.

Updated October 18, 2026 · 10 min read
Read guide: FHA Loans in 2026: Requirements, Limits, MIP and Who Qualifies
VA Home Loan Eligibility in 2026: Service Rules, Funding Fee and Limits

You are eligible for a VA home loan if you meet VA's minimum service requirements as a veteran, service member, National Guard or Reserve member, or qualify as an eligible surviving spouse. You prove it with a Certificate of Eligibility, then meet a lender's credit and income standards and agree to live in the home.

Updated October 18, 2026 · 9 min read
Read guide: VA Home Loan Eligibility in 2026: Service Rules, Funding Fee and Limits
USDA Loan Requirements in 2026: Eligible Areas, Income Limits and Fees

To get a USDA guaranteed loan, the home must be in a USDA-eligible rural area, your household's adjusted income must be at or below the moderate income limit for the county, and you must be a US citizen, non-citizen national or qualified alien who will live in the home and can show steady repayment ability.

Updated October 18, 2026 · 9 min read
Read guide: USDA Loan Requirements in 2026: Eligible Areas, Income Limits and Fees
FHA vs Conventional Loan: Costs, MIP vs PMI and Which Wins in 2026

FHA is usually better if your credit score is below about 680 or your debts are high, because HUD accepts scores from 500 and charges the same insurance price regardless of score. Conventional is usually cheaper with good credit and 5% or more down, because PMI can be removed and FHA's MIP often lasts for the life of the loan.

Updated October 18, 2026 · 9 min read
Read guide: FHA vs Conventional Loan: Costs, MIP vs PMI and Which Wins in 2026

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Key dates and rule changes

May 25, 2025FHA stops insuring new loans for non-permanent residents (case numbers on or after this date).
November 16, 2025Fannie Mae's automated underwriting no longer sets a fixed minimum credit score.
January 1, 20262026 conforming ($832,750 baseline) and FHA loan limits take effect.
December 31, 2026ITINs not used on a federal tax return for three straight years expire at the end of the year.
January 1, 2027FHA begins accepting FICO 10T and VantageScore 4.0 credit scores.

Dates from HUD, Fannie Mae, FHFA and IRS notices. Check the linked guides for details.

Mortgage glossary

APRAnnual percentage rate: the yearly cost of a loan including interest and certain fees, so you can compare offers.
AmortizationPaying a loan down in equal monthly payments, where early payments are mostly interest and later ones mostly principal.
AppraisalA licensed appraiser's opinion of the home's market value, used by the lender to size the loan.
ARMAdjustable-rate mortgage: the rate is fixed for a set period, then changes with an index plus a margin, within caps.
Closing costsFees and prepaid items paid at closing, such as lender fees, title, recording, taxes and insurance.
Conforming loanA conventional loan at or below the FHFA loan limit that meets Fannie Mae or Freddie Mac rules.
Down payment assistance (DPA)Grants or second loans from states, cities or nonprofits that help pay a down payment or closing costs.
DTIDebt-to-income ratio: monthly debt payments divided by gross monthly income, shown as a percentage.
DSCRDebt service coverage ratio: a rental property's rent divided by its monthly housing payment.
EscrowAn account the servicer uses to collect and pay your property taxes and homeowners insurance.
FHA loanA mortgage insured by the Federal Housing Administration, allowing 3.5% down with a 580 credit score.
Funding feeA one-time VA loan charge that helps fund the program; some veterans are exempt.
ITINIndividual Taxpayer Identification Number from the IRS, for people who file taxes but cannot get a Social Security number.
Jumbo loanA loan above the conforming loan limit for its county, with stricter rules.
Loan EstimateA standard three-page form lenders must give within three business days of your application.
LTVLoan-to-value ratio: the loan amount divided by the home's value or price, whichever is lower.
MIPFHA mortgage insurance premium: an upfront charge plus an annual premium paid monthly.
Non-QM loanA mortgage outside the CFPB Qualified Mortgage rules, often using other income proof such as bank statements.
PITIPrincipal, interest, taxes and insurance: the main parts of a monthly housing payment.
PMIPrivate mortgage insurance on conventional loans with less than 20% down; it can be removed later.
PointsUpfront fees, each equal to 1% of the loan, paid to lower the interest rate.
Pre-approvalA lender's conditional review of your credit, income and assets, showing a likely loan amount.
ReservesSavings left after closing, counted in months of housing payments.
USDA loanA zero-down mortgage guaranteed by the US Department of Agriculture for eligible rural and suburban areas.
VA loanA mortgage guaranteed by the Department of Veterans Affairs for eligible service members, veterans and surviving spouses.

Common questions about this topic

What is a government-backed mortgage?

It is a loan made by a private lender but insured or guaranteed by a federal agency: FHA (HUD), VA or USDA. The backing protects the lender if you default, which is why these loans allow lower down payments.

Which government loan is cheapest?

It depends on eligibility. VA loans often cost least because they have no monthly mortgage insurance. USDA fees are lower than FHA's, but the property and income must qualify. FHA is the most widely available.

Can I have more than one government loan?

Usually you can only have one FHA or USDA loan at a time because both are for a primary residence, with limited exceptions. VA entitlement can sometimes be used again or restored.

Do government loans have income limits?

USDA guaranteed loans have household income limits. FHA and VA loans do not have income caps, but you must show enough stable income to afford the payment.