FHA loans make homeownership possible and easier for low- to moderate-income borrowers who may not otherwise be able to get financing because of a lack of or a poor credit history, or because they have limited savings. Those who qualify for an FHA loan require a lower down payment. And the credit requirements aren’t nearly as strict as other mortgage loans—even those with credit scores below 580 may get financing.

People with established credit and low levels of debt, on the other hand, usually qualify for conventional mortgages. These loans are generally offered by private mortgage lenders like banks, credit unions, and other private companies. Unlike FHA loans, conventional mortgages aren’t backed or secured by the government.

A reverse mortgage is a loan for homeowners aged 62 and older. Reverse mortgages let senior homeowners turn part of their home equity into cash, which in turn gives them additional retirement income.