LOAN PRODUCTS
Find Your Perfect
Financing Solution
Understanding your options is the first step to smart financing. We'll help you navigate the options and find the loan that fits your situation—not the other way around.
Compare Loan Types at a Glance
Each loan type has different requirements and benefits. Here's how they stack up.
Conventional
Traditional financing
- Min Credit Score
- 620
- Min Down Payment
- 3%
- Max DTI
- 45-50%
- PMI Required
- If < 20% down
FHA
Government-backed flexibility
- Min Credit Score
- 580
- Min Down Payment
- 3.5%
- Max DTI
- 57%
- MIP Required
- Yes (lifetime)
VA
For veterans & service members
- Min Credit Score
- 620 typical
- Min Down Payment
- 0%
- Max DTI
- Flexible
- Funding Fee
- 0.5-3.3%
USDA
Rural area financing
- Min Credit Score
- 640
- Min Down Payment
- 0%
- Max DTI
- 46%
- Location
- Rural areas only
Construction
Build your dream home
- Min Credit Score
- 680-720
- Min Down Payment
- 10-20%
- Max DTI
- 45%
- Type
- Single-close
DSCR
Investment property loans
- Min Credit Score
- 660-680
- Min Down Payment
- 20-25%
- Income Verified
- No
- DSCR Required
- 1.0-1.25+
Understanding Your Options
Plain-English explanations of each loan type, who they're best for, and what to expect.
Conventional Loans
The most common type of mortgage. Not backed by the government, so lenders take on more risk and typically require higher credit scores.
In Plain English
Think of it like a traditional car loan, but for a house. The bank trusts you to pay it back based on your credit history and income. If you have good credit and can put money down, this is often your best bet for the lowest long-term costs.
Best For
- Buyers with credit scores 740+
- Those who can put 20% down to avoid PMI
- Primary residences and investment properties
- Anyone who wants to remove mortgage insurance later
FHA Loans
Backed by the Federal Housing Administration. The government insures these loans, making lenders more willing to work with buyers who have lower credit scores.
In Plain English
The government has your back on this one. They guarantee a portion of the loan, so lenders are more willing to work with buyers who might not have perfect credit or a large down payment. The trade-off? You'll pay mortgage insurance for the life of the loan (unless you put 10%+ down).
Best For
- First-time homebuyers
- Buyers with credit scores 580-619
- Those who can only put 3.5% down
- People rebuilding their credit
VA Loans
Guaranteed by the Department of Veterans Affairs. Available only to eligible veterans, active-duty service members, and surviving spouses.
In Plain English
This is the nation's way of saying thank you for your service. You can buy a home with no down payment and no monthly mortgage insurance. There's a funding fee (which can be financed into the loan), but disabled veterans may be exempt.
Best For
- Active duty military
- Veterans with qualifying service
- National Guard and Reserve members
- Surviving spouses of veterans
Construction Loans
Finances the construction of a new home. A construction-to-permanent loan combines the construction loan and mortgage into one, converting automatically when building is complete.
In Plain English
Instead of getting two separate loans (one to build, one for the mortgage), this combines everything into one. You lock in your rate before construction even starts. During building, you only pay interest on what's been drawn. When the home is complete, it converts to a regular mortgage.
Best For
- Building a custom home
- Landowners who want to build
- Investors building new properties
- Major renovations (essentially rebuilding)
DSCR Loans
Debt Service Coverage Ratio loans qualify based on property rental income rather than personal income. Perfect for real estate investors.
In Plain English
The property pays its own way. If the rent covers the mortgage payment (and then some), you qualify. Your personal income and job don't matter. Rates are typically 1-2% higher than conventional, but the flexible qualification can be worth it for serious investors.
Best For
- Real estate investors
- Self-employed with complex tax returns
- Building a rental portfolio
- Those who want to preserve conventional loan limits
Commercial Loans
Financing for multi-family (5+ units), retail, office, mixed-use, and other commercial properties. Different qualification standards than residential.
In Plain English
Commercial lending is a different world. Lenders focus more on the property's income potential (cap rate, NOI) than your personal finances. Expect higher down payments, shorter terms, and more documentation—but access to much larger deals.
Best For
- Multi-family investors (5+ units)
- Retail/office property buyers
- Mixed-use property investors
- Land developers
Key Terms You Should Know
Debt-to-Income Ratio (DTI)
Your monthly debt payments divided by your gross monthly income. Lenders use this to determine how much you can afford to borrow.
Example: If you earn $6,000/month and have $1,500 in monthly debts (including your new mortgage), your DTI is 25%.
Loan-to-Value Ratio (LTV)
The loan amount divided by the property value. A higher down payment means a lower LTV, which often means better rates.
Example: Buying a $400,000 home with $80,000 down (20%) gives you an LTV of 80%.
Private Mortgage Insurance (PMI)
Insurance that protects the lender (not you) if you default. Required on conventional loans with less than 20% down.
Example: PMI typically costs 0.5-1% of the loan amount annually, added to your monthly payment.
Closing Costs
Fees and expenses paid at closing beyond the down payment. Includes lender fees, title insurance, appraisal, prepaid taxes/insurance.
Example: Expect 2-5% of the loan amount. On a $300,000 loan, that's $6,000-$15,000.
Common Questions About Loan Products
Get clear answers to the questions we hear most often.
It depends on the loan type. FHA loans accept scores as low as 580 (or 500 with 10% down). Conventional loans typically require 620+, but you'll get the best rates with 740+. VA loans have no official minimum, but most lenders want 620+. The higher your score, the better your rate—and even a small rate difference can mean thousands over the life of your loan.
There's no one-size-fits-all answer. Putting 20% down avoids PMI on conventional loans, but that's not always realistic. FHA requires just 3.5%, VA and USDA offer 0% down. Consider your savings, monthly budget comfort, and opportunity cost. Sometimes it makes sense to put less down and keep reserves, other times maximizing down payment reduces long-term costs.
Interest rate is what the lender charges you to borrow the money. APR (Annual Percentage Rate) includes the interest rate PLUS other costs like origination fees, mortgage insurance, and discount points—giving you a more complete picture of borrowing costs. Always compare APRs when shopping lenders, not just interest rates.
Yes! Student loans count in your debt-to-income ratio, but they don't disqualify you. Lenders look at your monthly payment (not total balance). If you're on an income-driven repayment plan, we can often use that lower payment. The key is managing your overall DTI—typically under 43-50% depending on the loan type.
Pre-approval can take 1-3 days. Full approval after you have a property under contract typically takes 30-45 days, though we often close faster. The timeline depends on how quickly you provide documents, appraisal scheduling, and any conditions that need to be cleared. Construction loans take longer due to additional requirements.
For most loans: 2 years of W-2s, recent pay stubs, 2 months of bank statements, tax returns (if self-employed), and ID. We'll also pull your credit. The exact requirements vary by loan type—VA loans need your Certificate of Eligibility, self-employed borrowers need more tax documentation. We'll give you a complete checklist upfront.
Absolutely. Pre-approval tells you exactly how much you can borrow, strengthens your offer in competitive markets, and identifies any issues early. It's free, typically valid for 60-90 days, and can be renewed. Shopping without pre-approval means you might fall in love with a home you can't afford—or lose out to pre-approved buyers.
Private Mortgage Insurance (PMI) protects the lender if you default. It's required on conventional loans with less than 20% down. The good news: you can remove it once you reach 20% equity. FHA loans have similar insurance (MIP) but it lasts the life of the loan unless you put 10%+ down. VA loans have no monthly mortgage insurance at all.
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Ready to Find Your Property?
Now that your financing is in place, our real estate team is ready to help you find the perfect home.