“Which mortgage can I use?” is the question that organizes everything else — down payment, rate, insurance and even the type of property you're allowed to buy. There are three main families, and the difference between them starts with the paperwork, not the wallet.

Conventional — the market standard

It's the most common one. There is no government participation: it's a direct relationship between the buyer and the bank (in practice, following the criteria of the agencies that buy these loans on the secondary market).

• Down payment: the traditional figure is 20%, but products starting at 3% exist for certain profiles, especially first-time buyers.
• Below 20% down: PMI comes in, the mortgage insurance — which can be removed later (the subject of another article from this episode).
• Works for a primary residence, a second home and an investment property.
• Requires a compatible credit score and proof of income; score criteria tend to be stricter than under FHA.

FHA — government backing, with conditions

FHA stands for Federal Housing Administration, the federal housing agency. The FHA isn't the one lending the money: it insures the loan the bank makes, which allows more flexible terms for people with a smaller down payment or a weaker credit history.

• Down payment starting at 3.5% for those who hit the minimum required score.
• Requires American documentation — a Social Security number and eligible residency status. That's the point confirmed on the episode: without a green card or citizenship, the product doesn't apply.
• Only for the home you're going to live in. It doesn't work for investment or for a second home. It's also not the route for someone who wants to buy a second property to rent out.
• Watch the insurance: FHA's insurance (called MIP) follows different rules from the conventional's PMI. In most cases with less than 10% down, it stays with the loan until the end — it doesn't fall off on its own once you reach 20% equity. Getting rid of it usually means refinancing into a conventional.

VA — for those who served

The VA loan is run by the Department of Veterans Affairs and is meant for active-duty service members, veterans and, in certain situations, surviving spouses. It's the most advantageous product on the American market for those who qualify: it usually waives the down payment and charges no monthly mortgage insurance, though it does carry its own fee at closing (funding fee).

It requires a certificate of eligibility and is meant, here too, for the home the person is going to live in.

And what about someone with only an ITIN?

The ITIN is the tax identification number issued by the IRS for people who need to file taxes and don't have a Social Security number. It serves to pay taxes — it isn't an immigration document and doesn't open the door to government programs. That's why FHA and VA are off the table.

There are, however, banks and lenders that work with ITIN loans: their own products, outside the agency standard, with a larger down payment and a higher rate. It's a smaller market, served by specific institutions — and it's exactly the kind of case where a broker with access to many banks makes a difference.

Anyone in that situation should ask directly: “do you work with ITIN?”. The answer quickly separates who can help from who can't.

How to decide

The practical order is simple. First look at what you can use: do you have American documentation? did you serve in the armed forces? is the property to live in or to earn income? That alone eliminates most of the options. Only then compare down payment, rate and insurance among the products that are left — always using the Loan Estimate, the standardized document that allows a side-by-side comparison.

This text is informational and does not replace legal, accounting or licensed mortgage professional advice. Rules, figures and rates change; confirm the current version before any decision.

Sources and verification

• Cadê Moradia episode with Rafael Na (June 2026) — presentation of the three loan types and of FHA's restriction to those with American documentation and to a primary residence.
• Federal Housing Administration (FHA) — federal housing loan insurance program; minimum down payment and MIP insurance rules.
• Department of Veterans Affairs (VA) — eligibility of service members, veterans and spouses; down payment waiver and funding fee.
• ITIN (Individual Taxpayer Identification Number) — tax number issued by the IRS, with no immigration effect; specific credit products offered by private lenders.

Watch this part of the episode:

Types of mortgage: Conventional, FHA and VA — starting at 14:55 · CADÊ BRAZIL