Types of home loans, compared side by side

Before anything else

There is no best loan, and anyone who says otherwise is selling

I have been doing this for nearly thirty years and I have never once found a loan program that was right for everybody. What I have found, repeatedly, is buyers who were put into a program because it was the one their lender was comfortable writing.

So here is the whole comparison in one place, with the drawbacks stated as plainly as the benefits. The people I work with mostly work shifts — teachers, firefighters, police officers, nurses, EMS — and they do not have time to be sold to. They need the facts and then they need to get back to work.

The comparison

Five programs, side by side

Everything below expands on the rows, and where I have already written a full page on a program I have linked it rather than repeating myself.

Program

FHA

The most common first-time buyer loan in Jacksonville, because it asks 3.5% down and it tolerates credit that is still recovering. The honest drawback is the mortgage insurance: an upfront premium financed into the loan, plus an annual premium collected monthly that on most modern FHA loans stays for as long as you keep the loan.

The other thing to know is that the appraiser holds the house to minimum standards, and older Jacksonville housing stock — Riverside, Springfield, Murray Hill, Arlington, the Westside — regularly flags peeling paint, handrails, wiring and roof age. All fixable, all requiring time in the contract.

Loan limits are county-specific, set by HUD, and change every year. Look yours up at the HUD limits tool. I have a full page on this program: FHA loans in Northeast Florida.

Program

VA

The strongest financing tool available in this market, and I hold the Military Relocation Professional designation because Jacksonville runs on it. No down payment on most purchases and — the part people miss — no monthly mortgage insurance whatsoever.

A funding fee applies instead. Per the Department of Veterans Affairs, first use with no down payment is 2.15% of the loan amount, subsequent use is 3.3%, financed into the loan rather than paid at closing. Veterans receiving compensation for a service-connected disability are exempt from the fee entirely. Confirm your figure at va.gov.

The drawback is on the property side: the VA appraisal includes a condition review against Minimum Property Requirements, and a house needing significant work can be difficult. Full page here: VA loans in Jacksonville.

Program

USDA

Zero down, and far more widely available around Jacksonville than people believe — Baker County, parts of Clay, Nassau and Putnam all contain eligible areas. Two tests, both of which must pass: the property's address must be in an eligible area, and household income must be under the county limit for your household size.

Guarantee fees apply upfront and annually. Owner-occupied primary residences only. Check the address at the USDA property eligibility map before you plan around it, and read my full page: USDA rural loans in Northeast Florida.

Programs

Conventional and jumbo

Conventional means a loan written to Fannie Mae or Freddie Mac guidelines. If your credit is strong it usually beats FHA over the life of the loan for one reason: the mortgage insurance is cancellable once you hold enough equity. Down payments start at 3% on some first-time buyer products.

The 2026 baseline conforming limit for a one-unit property is $832,750 in most of the country, announced by the Federal Housing Finance Agency in November 2025. Above that you are into jumbo financing, which means no agency backing, larger down payments, months of cash reserves after closing, deeper documentation and a longer timeline. In this market that mostly means Ponte Vedra, the Beaches and riverfront.

Assistance

Hometown Heroes and down payment help

Florida Housing Finance Corporation's Hometown Heroes program is a second mortgage covering down payment and closing costs for full-time employed Floridians buying a primary residence. It sits on top of a first mortgage rather than replacing one.

As published by the program administrator, eHousingPlus, in August 2026: 5% of the first mortgage amount capped at $35,000, a minimum 640 credit score, pairable with FHA, VA, USDA-RD or conventional HFA first mortgages. Funding is finite and rounds close. Only approved participating lenders can originate it — ask that question on the first call.

It is a loan, not a gift, and the repayment terms matter. I have written it up in full: Hometown Heroes in Jacksonville.

How to decide

How I would actually choose

1. If you served, start with VA. Nothing else competes on cost when you qualify.
2. If the address is USDA-eligible and your income fits, check USDA next. Zero down without a funding-fee-sized bite.
3. If your credit is 700 or better, price conventional against FHA. Ask for both on paper. Over ten years the insurance difference is usually the whole argument.
4. If cash is the obstacle rather than credit, look at FHA plus assistance.
5. Then ask three lenders for a Loan Estimate and compare page two, not the headline rate.

And if the honest answer is that you should wait six months and clean up two accounts first, I will tell you that. It costs me a commission and it saves you a great deal more.