4 Best Mortgage Loans 2022

If you want to buy a home in 2022, it would be best if you leverage on a mortgage loan as a financing option. While the traditional fixed-rate mortgage is common, it is certainly not the best mortgage loan option you can get. 


In this article, we’ll give you the four best mortgage loans that require minimal qualification requirements and come with a low-interest rate in 2022.

Conventional Loans

This is the most popular mortgage loan type available. Most mortgage loan lenders will make an attempt to know if you are qualified for a conventional loan. This is because the conventional loan is considered the most basic mortgage loan.


Conventional loans refer to a mortgage that you can get from private mortgage lenders e.g a bank. However, conventional loans aren’t government-insured like the USDA and VA loans which will be discussed later in this article.


In addition, there are two main types of conventional mortgage loans. These are:


  • Conforming Loans

  • Non-Conforming Loans

Conforming Loans

As the name implies, a conforming loan is a type of conventional loan that conforms with the lending limits stipulated by the Federal Housing Finance Agency, FHFA. Conforming loans follow the mortgage requirements set by Fannie Mae.


These lending limits change from year to year. Presently, in 2022, the lending limit is $647200. However, this limit varies based on your location. It is significantly higher in areas with higher costs of living.


In addition, if the mortgage loan amount you need is within the lending limits, a conforming loan is a good option. This is because it offers a lower interest rate than other mortgage loan types.

Non-Conforming Loans

Non-Conforming Loans, on the other hand, do not conform to the loan limits set by the FHFA. It also doesn’t meet the requirements set by Fannie Mae and Freddie Mac. 


So, if you have a credit score lesser than 600 and you need access to a loan amount higher than the FHFA limits, then, Non-Conforming Loans can be one of the best options you may get.


However, since there are different types of mortgage loan under the Non-Conforming loan umbrella, the requirements to get one of these loans varies by the loan you are applying for and your lender.


The main benefit of a Non-Conforming mortgage loan is that you have access to a higher loan amount. This means you can easily afford to buy a more expensive home.

Conventional Loans: Best for—

If you have a good credit score and you are looking for a mortgage loan with the lowest interest rate, then you should opt for any conventional loan. Either conforming or Non-Conforming, you should choose one whose loan limits are enough to purchase your desired home. 


Another interesting thing is that, if you want to obtain a conventional mortgage loan, the loan application process is not complicated.



USDA loan is a government insured. It is backed by the U.S. Department of Agriculture. This loan was made to provide mortgage access for low and middle-income citizens of the United States. With the USDA loan, you can easily afford to buy a home in a rural area.


To access a USDA loan, you can either take a loan directly through the program or receive guarantee loans through private lenders. This depends on what you qualify for.


For the direct loan program, it is recommended that you can’t afford most traditional loans. But you can only qualify if the total population in your residential area is less than 35000. 


The advantage of the direct loan program is that you enjoy fixed interest rates and you do not have to make any downpayment. However, you’ll need to submit your application to a USDA rural development office directly.


On the other hand, the loan guarantee program is a more common option than the direct USDA loan. Instead of getting a loan directly from the USDA, you can get your loan through an approved private lender. In order to be eligible for this, you must live in a rural area and you must not make more than 115% of your residential area’s median income.

USDA Loan- Best For

If you are a low or moderate-income earner and you live in a rural area in the United States, the USDA loan is the best mortgage option you can get. The USDA loan requires no downpayment and minimal qualification criteria.

FHA Loans

If you have a low credit score and you do not meet the requirements for a conventional loan, you can consider the Federal Housing Administration, FHA loan.


FHA loans can be accessed through private lenders. However, these loans belong to the categories of mortgage loans insured by the government. 


The advantage of government insurance on your loan is that you will be able to access higher mortgages. That you might have been unable to qualify for ordinarily.


However, this doesn’t guarantee that all your loan applications will be approved. If you have a credit score below 580, but between 500 and 579, you’ll need to prepare at least 10% of your desired loan principal as a downpayment. 


But, if your credit score is higher than 580, only 3.5% of your loan principal is required as a downpayment.

The downside to FHA loans is that, compared to conventional loans, FHA loans are relatively more expensive. The total overall cost, which includes mandatory private mortgage insurance, tends to be higher than other loan types. 

FHA Loan: Best For—

If you have a low credit score and are unable to qualify for a mortgage loan, but you can afford to make monthly mortgage payments. Then, FHA loan can be a great loan alternative for you.

VA Loan

The VA loan backed by the Department of Veterans Affairs also ranks as one of the best mortgage loans in 2022. It is a loan program created for active and retired members of the military and their spouses. The VA loan is also a government-insured loan.


VA Loan helps military service members to be able to afford and buy their own homes. This is how it works– You’ll take a mortgage through a private mortgage lender, then, you receive a government guarantee on a portion of the loan. However, in order to access the loan, you’ll need to meet and qualify for your lender’s loan requirements

VA Loan: Best For—

With the VA loan, you don’t need to worry about downpayment. And you also get access to mortgage loans at a lower interest rate. In addition, you don’t need to worry about additional PMI. Furthermore, the VA cash-out refinance option gives you access to more funds.


There are different types of mortgage loans available, but based on accessibility and eligibility criteria, the government-insured mortgage loan and the conventional loan are the best mortgage loans in 2022.

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