A mortgage feel daunting until you realize there are only a handful of loan types and each one has a purpose with different tradeoffs.

Allow me to say something that you haven't heard before: you want to be in touch with specifically, a Mortgage Broker, not a retail lender, direct lender, mortgage banker, credit union, or your banking institution (any of these are good second opinions but not first). A Mortgage Broker can find the best unique programs, rates, and servicers for you that other lenders cannot because a Broker shops your loan to multiple wholesale lenders.

‍Conventional

loans are the most common and generally the most flexible and most selected. Conventional mortgages are great for buyers with average credit and stable income. They can be used for primary homes (and in many cases second homes, investment properties, and construction), and the minimum down payment is 3% if you qualify for the mortgage payment, of course. You've likely heard the big milestone is 20% down because it usually avoids monthly private mortgage insurance (PMI) that is required when your LTV is above 80%. My mortgage insurance is $35 on my condo and I've owned it for two and a half years as I write this post. I'm fearless, I will never let mortgage insurance stop me, I hope you adopt the same mindset. This monthly private mortgage insurance (PMI) payment is built into your monthly payment and is marginal. This is not the same as FHA’s mortgage insurance because this insurance can be removed later when you reach 20% equity (either through paying the loan down or appreciation, depending on the rules and your loan type). Conventional tends to be the simplest path with the smallest fees at origination but it does not have the lowest mortgage rates.

FHA

loans exist to make buying more accessible, especially for buyers who need a lower down payment or slightly more flexible underwriting compared to many conventional options. The important thing to understand is that FHA comes with two layers of mortgage insurance: an Upfront Mortgage Insurance Premium (UFMIP) and annual mortgage insurance that’s paid monthly. The upfront piece is commonly around 1.75% of the base loan amount and is often rolled into the loan (so you don’t have to bring that full amount in cash, but it does increase your financed balance). Then the annual FHA mortgage insurance is paid monthly and varies based on down payment, loan amount, and term—so even if your rate looks great, your total payment may be higher once FHA mortgage insurance is included. FHA also uses an FHA appraisal that can be more sensitive to certain property-condition items, because the home must meet basic standards.

VA loans are for eligible veterans, active-duty service members, and some surviving spouses—and they’re often the best value when you qualify because they can offer 0% down and no monthly mortgage insurance. However, VA loans typically include a VA funding fee, which helps keep the program running. That fee varies depending on factors like whether it’s your first VA loan or a subsequent use, whether you’re putting money down, and your category of service; many buyers roll the funding fee into the loan, and some borrowers may be exempt (for example, certain disability-related eligibility rules). VA appraisals follow VA guidelines (“minimum property requirements”), so the condition conversation can matter, but it’s usually manageable when you choose the right property and handle issues early.

USDA loans are built for buyers purchasing in eligible areas (which can sometimes include suburban pockets, not just farmland) and who meet income limits for that area and household size. USDA can offer 0% down, which is why it’s so attractive for qualified buyers, but it also has its own fee structure—typically an upfront guarantee fee and an annual fee paid monthly—so, like FHA, the rate alone doesn’t tell the whole affordability story. USDA can be an amazing fit when the location and income requirements line up, especially for buyers who want a lower cash-to-close path and are open to a broader search radius.

Then there’s Jumbo, which isn’t a “program” like FHA/VA/USDA—it simply means the loan amount is above conforming limits, so the lender is taking on more risk and usually wants a stronger file. Jumbo loans often require higher credit scores, more cash reserves, and tighter documentation, and down payment expectations can be higher depending on the lender and property type. Jumbo can still be a great option for high-income, high-asset buyers, but it’s typically less forgiving if your profile is complex.

What usually overwhelms buyers isn’t choosing the loan type—it’s the “in-between” after you get pre-approved. Pre-approval is the starting line: your lender checks credit and reviews income/assets to estimate what you qualify for and what your payment might look like. Once your offer is accepted, the clock starts: you enter due diligence (inspections, reviewing disclosures, deciding on repairs/credits), your lender moves into processing (collecting and verifying documents), then underwriting (the lender’s formal risk review), and the appraisal confirms value (and sometimes condition expectations depending on the loan). This is why buyers feel like they’re being asked for “one more thing” constantly—underwriting is essentially documenting the story of your finances and making sure nothing changed since pre-approval. The fastest way to keep it smooth is to avoid new debt, keep bank activity clean and explainable, and don’t move money around without telling the lender—because large deposits, undisclosed transfers, or sudden changes can cause delays.

If you want, I can rewrite this in your exact tone for your site (more “Sydney voice,” less classroom), and I can also add a short paragraph that explains the difference between rate vs APR vs total monthly payment (since FHA/USDA/VA fees are where buyers get surprised).