Home Loan Options

Conventional financing refers to home loans that are not insured or guaranteed by the government, making them a popular choice for borrowers with strong credit and stable income. These loans typically require a down payment of at least 3–5% for qualified buyers, with 20% needed to avoid private mortgage insurance (PMI). They come in two main types: conforming loans, which meet Fannie Mae and Freddie Mac guidelines, and non-conforming loans, such as jumbo loans for higher-priced properties. Conventional loans offer flexible terms, competitive interest rates, and fewer restrictions compared to government-backed loans, making them ideal for many homebuyers.

​FHA stands for the Federal Housing Administration. It is a government agency that insures mortgages issued by approved lenders, making home loans more accessible to buyers with lower credit scores or smaller down payments. FHA loans are popular among first-time homebuyers due to their lower down payment requirements (as low as 3.5%) and more flexible credit and debt to income guidelines.

​VA loans are mortgage loans backed by the U.S. Department of Veterans Affairs (VA), designed to help eligible veterans, active-duty service members, and some surviving spouses buy homes with favorable terms. These loans require no down payment, no private mortgage insurance (PMI), and offer competitive interest rates. VA loans also have more flexible credit requirements and allow for higher debt-to-income ratios compared to conventional loans. They can be used for purchasing, refinancing, or renovating a home, making them a valuable benefit for those who have served in the military.

A bank statement loan is a type of mortgage that allows borrowers to qualify based on their bank statements rather than traditional income documentation, like pay stubs or tax returns. This type of loan is ideal for self-employed individuals, freelancers, or others with non-traditional income sources who may not have consistent documentation. Lenders typically review the borrower’s bank statements (usually 12–24 months) to assess their cash flow and ability to repay the loan. While bank statement loans offer flexibility, they may come with higher interest rates and stricter requirements compared to conventional loans.

A USDA loan is a government-backed mortgage designed to help low-to-moderate-income buyers purchase homes in eligible rural and suburban areas. These loans are backed by the U.S. Department of Agriculture (USDA) and offer 100% financing, meaning no down payment is required. They also feature low interest rates and reduced mortgage insurance costs compared to conventional loans. To qualify, borrowers must meet income limits and the home must be located in a USDA-designated area. This loan program makes homeownership more affordable for buyers in rural communities.

​A DSCR (Debt Service Coverage Ratio) loan is a type of mortgage primarily used for investment properties. The focus of this loan is on the property’s ability to generate enough income to cover its expenses, rather than the borrower’s personal income. The DSCR is a ratio that compares the property’s net operating income (NOI) to its debt payments. A ratio greater than 1 means the property generates enough income to cover the debt, while a ratio below 1 indicates it doesn’t. DSCR loans are popular with real estate investors because they allow for more flexibility in qualifying, as they don’t require personal income verification or tax returns.