VA Loans: 

The VA loan was set up by the department of Veteran Affairs to help military personal and their spouses get home loans. The Department of Veteran Affairs  guarantees the loan to the lender in case you are to default on the loan, it is for this reason that no PMI (Private Mortgage Insurance) is required on a loan even with 100% financing on loans up to $359,650. Qualified veterans and active duty military can obtain a loan of up to $417,000, or $625,500 in high-cost areas.  There is a Funding Fee required by the Department of Veteran Affairs, that varies between 0-3.3% of the amount of the military loan depending on the borrower’s current Veteran Status.

FHA Loans:

The Federal Housing Administration insures the mortgages on FHA loans. What this means is that the FHA takes responsibility for the loan if you are going to default the lender. This type of loan requires at least a 3% down payment so they will ensure 97% of the loan. FHA loans have competitive interest rates because the Federal government insures the loans for lenders. You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan because the FHA is taking some of the risk away from the lender. Unlike with a VA loan FHA loans will require you to get PMI if you are putting less than 20% down on a home.  This is a good loan for first time home buyers who do not have a lot of money to put down on the home.

Conventional Loans:

A conventional loan is basically any kind of lender agreement that's not backed in full by the Veterans Administration or protected by the FHA (the Federal Housing Administration). Instead conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac.  There are many type of loan programs that fall under the conventional category.