Financing Options
Conventional Loan
Conventional loans are the most common type of mortgage loan. According to the National Association of Home Builders, conventional loans accounted for 78.5% of new home sales in the first quarter of 2022. This loan is not backed by a government agency. Generally, a credit score of 660+ is required for this loan and minimum of 3% down payment.
FHA Loan
A FHA loan is a government-backed mortgage with less financial requirements than a conventional loan. It requires a minimum 500 credit score if you have 10% down payment, or 580 credit score if you have a 3.5% down payment.
USDA Loan
USDA loans have no down payment requirement and can help low- to moderate-income homebuyers who want to purchase a home in an eligible rural area.
VA Loan
A VA loan is only granted for active military and veterans, their spouses and other beneficiaries. This loan does not require a down payment or mortgage insurance.
Construction Loan
A construction loan is used to cover the costs associated with building a house, from start to finish. Construction loans may cover the costs of buying land, drafting blueprints, securing permits and paying for labor and materials. These are short-term loans that are granted as the project progresses and not at one time.
