Agency-backed financing purchased by Fannie Mae or Freddie Mac, which gives it the widest lender appetite and the cleanest pricing of any program. Down payments start at 3%, terms run 15, 20 or 30 years, and credit can go down to 620 with documented W-2 income. At 20% down the monthly mortgage insurance drops off, which is why it is the default choice for buyers who can reach that threshold.

Best for · W-2 buyers with solid credit who want to avoid mortgage insurance at 20% down.