US mortgages come mostly in three flavors: conventional, FHA and VA (plus a small slice of USDA/RHS rural loans). The 2023 HMDA data shows how the market splits and how that split shifts by state.
Informational only. This explains the programs and the published data; it is not lending advice. Eligibility and terms vary by lender and year — confirm with a licensed lender.
The national split
| Loan type | Share of originations | Backed by |
|---|---|---|
| Conventional | 79.6% | Private (often Fannie Mae / Freddie Mac) |
| FHA | 13.2% | Federal Housing Administration |
| VA | 6.6% | Dept. of Veterans Affairs |
| USDA / RHS | 0.6% | USDA Rural Housing Service |
Conventional dominates, but the government-backed programs matter most for the buyers who use them.
How they differ
- Conventional — no government insurance, usually 3–20% down, stricter credit. You pay PMI until you reach roughly 20% equity, then it can drop off.
- FHA — insured by the FHA, down payments as low as 3.5% and friendlier to lower credit scores, but with an upfront and an annual mortgage insurance premium (MIP) that often lasts the life of the loan.
- VA — guaranteed by the VA for eligible service members and veterans, frequently with no down payment and no monthly mortgage insurance, in exchange for a one-time funding fee.
For a fuller breakdown see FHA vs VA vs conventional explained.
Where each is most common
The mix is far from uniform. VA loans concentrate where the military does — Alaska (about 23% of originations), Virginia (14%) and Hawaii. FHA loans are heaviest in states with more first-time and lower-down-payment buyers — Louisiana (19.4%), New Mexico and Georgia. You can rank every state on the highest FHA + VA share page.
Which is right for you?
That depends on your credit, savings and eligibility — not on which is most popular. A VA loan is usually the cheapest option if you qualify; FHA can open the door with a small down payment; conventional wins once you have strong credit and 20% down. Run the numbers on the mortgage calculator and check current rates.
Sources
Figures are from the HMDA Data Browser (2023 reporting year, public domain). Shares are over loans with a reported type. See our methodology.