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FHA loans are loans issued by a bank, but backed by the federal government. They are intended for people can not qualify for a typical bank loan.
As of 2021, FHA loans are only available for loans less than $822,375.
Conventional loans are those offered by a bank which might have a variety of terms and rates depending on the amount down and factors such as credit score, debt, and income.
For conventional loans, it is standard to make a down payment of 20%. For a $1,600,000 house, this would be $320,000.
However, some loans offer down payments as low as 3% to buyers with excellent credit, high income, and large assets.
Buyers who can't put at least 20% down are often required to pay PMI. For a $1,600,000 loan, this could be as high as $2,000 a month. Over time, if the buyer builds up equity in the house, PMI will no longer be required.