Mortgage Guide 2026: Rates, Types & How to Get Approved

Current Rates (February 2026):

• 30-year fixed: ~6.2%
• 15-year fixed: ~5.5%
• 5/1 ARM: ~5.8%

Forecasts project rates ending 2026 around 5.9%. The 3% rates of 2020-2021 are unlikely to return.

Conventional

• 3-20% down payment
• 620+ credit score
• Best rates with 20% down

FHA

• 3.5% down payment
• 580+ credit score
• Requires mortgage insurance

VA (Veterans)

• 0% down payment
• No PMI
• Veterans/active military only

USDA

• 0% down payment
• Rural areas only
• Income limits apply

Key Factors:

• Credit score (740+ for best rates)
• Debt-to-income ratio (<43%)
• Down payment amount
• Employment history (2+ years)
• Savings/reserves

Documents Needed:

• 2 years tax returns
• Recent pay stubs
• Bank statements
• ID and SSN