Answer 5 questions — see which loan types you qualify for and your full monthly payment
Conventional loans are not backed by the government. They require a minimum 620 credit score and as little as 3% down. With 20% or more down, you avoid PMI entirely. Most conforming conventional loans must stay at or below the 2024 loan limit of $766,550 (higher in certain high-cost counties).
FHA loans are backed by the Federal Housing Administration and are designed for buyers with lower credit scores or smaller down payments. You can qualify with 580+ credit and just 3.5% down, or with 500–579 credit if you put 10% down. FHA loans require an upfront mortgage insurance premium (1.75% of the loan, usually financed) plus an annual MIP of ~0.55%. The 2024 baseline loan limit is $498,257.
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They offer 0% down payment and no monthly PMI — making them the most powerful loan type for those who qualify. A one-time VA funding fee (typically 2.15% for first use, 0% down) is charged instead of PMI, and can be financed into the loan.
USDA loans are backed by the US Department of Agriculture for properties in designated rural and suburban areas. They offer 0% down and low rates. Borrowers must meet income limits (typically 115% of area median income). There's a 1% upfront guarantee fee and 0.35% annual fee.
Debt Service Coverage Ratio loans are designed for real estate investors. Instead of verifying personal income, lenders check whether the property's rental income covers the mortgage payment (typically requiring a DSCR of 1.0–1.25). They usually require 20–25% down and 680+ credit.
Jumbo loans exceed the conforming loan limit ($766,550 in most areas). They require stricter qualifications — typically 700+ credit, 10–20% down, and documented reserves of 6–12 months of payments. Rates are usually slightly higher than conforming loans.
For self-employed borrowers who can't show traditional W-2 income, bank statement loans use 12–24 months of personal or business bank statements to verify income. They typically require 10–20% down and 620+ credit.
Property tax is a major component of your monthly payment and varies dramatically by state. These are effective average property tax rates for 2024 (source: Tax Foundation).
| State | Eff. Rate | Monthly Tax on $400k Home |
|---|---|---|
| New Jersey | 2.47% | $823 |
| Illinois | 2.27% | $757 |
| Connecticut | 2.14% | $713 |
| New Hampshire | 2.09% | $697 |
| Vermont | 1.90% | $633 |
| Wisconsin | 1.85% | $617 |
| Texas | 1.80% | $600 |
| New York | 1.73% | $577 |
| Nebraska | 1.61% | $537 |
| Ohio | 1.62% | $540 |
| Florida | 0.89% | $297 |
| California | 0.75% | $250 |
| Colorado | 0.50% | $167 |
| Hawaii | 0.29% | $97 |
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment:
Many lenders also add PMI (private mortgage insurance) or MIP (FHA mortgage insurance) if your down payment is below 20%, making the full acronym PITIA or PITIMI.