Conventional loans include many city and state housing finance programs, first time buyer assistance, and down payment assistance programs. They are usually more lenient on their qualification requirements and have lower fees. These loans can have many benefits such as tax credits for parts of your interest payments. Usually these loans are fixed-rate mortgages with a mortgage rate, or interest rate, that is lower than the current market.

Government loans are all insured on a federal level. There are two types of loans: conventional and government. All loans except FHA, VA and RHS loan programs are considered government loans.

FHA Loans
The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD). These loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit.

VA Loans
Veteran Affairs loans are guaranteed by the U.S. Department of Veteran Affairs. This allows veterans to obtain home loans with beneficial terms and without a down payment. It is easier to qualify for a VA loan than more conventional methods, which is true for all government loans.

The maximum limit for a VA loan is usually around $203,000. VA loans are not made by The U.S. Department of Affairs; rather, they merely guarantee loans made by lenders. If the VA determines you eligible, then you're eligible.

RHS Loan Programs
The Rural Housing Service (RHS) of the U.S. Department of Agricultures guarantees loans for rural residents with minimal closing costs and $0 down.