US Mortgage Guide 2025: FHA, VA, Conventional Loans & Rates
Complete guide to US mortgages including FHA, VA, conventional loans, current interest rates, down payment requirements, and calculating payments in USD.
US Mortgage Market Overview 2025
The US mortgage market offers diverse loan options for homebuyers. Understanding the different types, requirements, and current rates helps you secure the best financing for your home purchase.
Current Interest Rates (USD)
- 30-year Fixed: 6.5% - 7.5%
- 15-year Fixed: 6.0% - 7.0%
- 5/1 ARM: 5.8% - 6.8%
- 7/1 ARM: 6.0% - 7.0%
- 10/1 ARM: 6.2% - 7.2%
FHA Loans (Federal Housing Administration)
Down Payment: As low as 3.5% with 580+ credit score, 10% with 500-579
Credit Score: Minimum 500 (with 10% down), 580+ for 3.5% down
Loan Limits: $498,257 (most areas), up to $1,149,825 (high-cost areas)
Mortgage Insurance: Required for entire loan term if down payment < 10%
Best For: First-time buyers, lower credit scores, smaller down payments
VA Loans (Veterans Affairs)
Down Payment: 0% down payment required
Eligibility: Active military, veterans, National Guard, Reserves, surviving spouses
Credit Score: No minimum requirement (lender-dependent, typically 620+)
Loan Limits: No limit for loans up to $1,149,825 (2025)
Funding Fee: 1.25% - 3.3% (can be financed into loan)
Best For: Veterans, active military, no down payment needed
Conventional Loans
Down Payment: 3% - 20% (20% avoids PMI)
Credit Score: 620+ (740+ for best rates)
Loan Limits: $766,550 (most areas), up to $1,149,825 (high-cost areas)
Private Mortgage Insurance (PMI): Required if down payment < 20%
Best For: Strong credit, larger down payments, investment properties
USDA Loans (Rural Development)
Down Payment: 0% down payment required
Eligibility: Rural/suburban areas, income limits apply
Credit Score: 640+ typically required
Guarantee Fee: 1% upfront, 0.35% annually
Best For: Rural homebuyers, first-time buyers, low-to-moderate income
Jumbo Loans
Loan Amount: Above conforming loan limits ($766,550 in most areas)
Down Payment: Typically 10-20%
Credit Score: 700+ typically required
Interest Rates: Usually 0.25-0.5% higher than conforming loans
Best For: High-value properties, luxury homes
Mortgage Insurance Requirements
FHA MIP (Mortgage Insurance Premium):
- Upfront: 1.75% of loan amount
- Annual: 0.45% - 1.05% (depends on loan term and LTV)
- Can be removed after 11 years if LTV < 78%
Conventional PMI:
- 0.2% - 2% annually
- Automatically removed at 78% LTV
- Can be requested at 80% LTV
Down Payment Assistance Programs
State Programs: Most states offer first-time buyer assistance
Local Programs: Cities and counties often have additional programs
Employer Programs: Some employers offer homebuyer assistance
Non-Profit Organizations: Various groups provide down payment help
Closing Costs in the US
Typical closing costs range from 2-5% of home price:
- Origination Fee: 0.5% - 1% of loan amount
- Appraisal: $300 - $600
- Title Insurance: $500 - $2,000
- Home Inspection: $300 - $500
- Attorney Fees: $500 - $1,500
- Recording Fees: $50 - $200
- Prepaid Items: Property taxes, insurance, interest
Tax Benefits
Mortgage Interest Deduction: Deduct interest on up to $750,000 of mortgage debt
Property Tax Deduction: Deduct up to $10,000 in state and local taxes
PMI Deduction: Deductible if AGI < $100,000 (phases out to $109,000)
Points Deduction: Deduct mortgage points in year paid
Calculate Your US Mortgage
Use our calculator set to USD to:
- Calculate monthly payments including PMI/MIP
- Compare different loan types and terms
- See total interest over loan life
- Plan for different down payment scenarios
- Understand amortization schedules
Tips for US Home Buyers
- Get pre-approved before house hunting
- Compare rates from multiple lenders
- Consider total cost, not just interest rate
- Shop for title insurance and other services
- Understand all fees and closing costs
- Maintain good credit score (740+ for best rates)
- Save for emergency fund after closing
- Consider first-time buyer programs in your state