While the U.S. housing recovers, the mortgage market rebuilds. As a result, today's home buyers have more mortgage financing options than at any time in the last 5 years. With so much choice and brand-new rules, it can be tough to know which loan is best.

The "rules of thumb" from yesteryear no longer apply.

Flowchart : Find Your Best Mortgage Option

To help today's buyers make better mortgage choices, The Mortgage Reports presents this flowchart.

The graphic uses three specific loan traits as a starting point -- (1) Downpayment Amount, (2) Loan Size and (3) Credit Score -- then follows-up with specific questions to uncover a buyer's optimal mortgage program.

In addition to identifying conventional loan opportunities via Fannie Mae and Freddie Mac, the flowchart identifies loan possibilities via the Federal Housing Administration (FHA), via jumbo mortgage lenders, and via niche mortgage programs including the USDA Rural Housing loan, the Department of Veterans Affairs' VA loan, and the Fannie Mae Conventional 97 program.

Some of the questions asked include :

• What is your local loan limit?
• Are you borrowing more than your local loan limit?
• Do you plan to make a downpayment of 20% or more?
• Do you plan to make a downpayment of 5% of less?

Depending on a buyer's answers to the above questions, the flowchart may recommend a conforming loan; or a jumbo mortgage; or a something more suitable. Home buyers in less-densely populated areas may find the USDA Rural Housing program to be the best fit.

Furthermore, first-time buyers planning on a low- or no-downpayment mortgage may be routed to specific loan program depending on whether their downpayment is a gift, or is sourced from their own funds.