US Mortgage Loan Options Compared: USDA, VA, Bridge & Traditional

USDA loans are zero‑down mortgages for eligible buyers in designated rural or suburban areas. Applicants must have a credit score of at least 640 and meet income limits set at 115 % of the local median. The loan carries a one‑time guarantee fee at closing and an annual fee added to the monthly payment, but it does not require private mortgage insurance.

VA loans also offer zero‑down financing but are limited to veterans and active‑duty service members. They have no income caps or geographic restrictions, and they are backed by the U.S. Department of Veterans Affairs, which allows more flexible underwriting and, for fully entitled borrowers, no statutory loan limit.

Bridge loans are short‑term financing tools that “bridge” the gap between buying a new property and selling an existing one or obtaining long‑term funding. They typically close within days to weeks, last six months to three years, and carry higher interest rates. Lenders require a clear exit strategy, such as refinancing or property sale.

Traditional mortgages are long‑term loans (15–30 years) offered by banks and credit unions. They feature lower interest rates than bridge loans, but the approval process can take 30–60 days as lenders assess income, credit, debt and the property. These loans suit buyers who plan to hold the property for many years, providing predictable payments and lower overall cost.