Purchase Loans

What Is a Purchase Loan?

 Types of Purchase Loans

• Conventional Loans
  • Not insured by the government.
  • Typically require 620+ credit score.
  • Minimum 3–5% down payment.
  • Better rates for borrowers with strong credit and income.
• FHA Loans (Federal Housing Administration)
  • Government-backed loan.
  • Low down payment (as low as 3.5%).
  • Easier qualification, ideal for first-time buyers.
  • Mortgage Insurance Premium (MIP) required.
• VA Loans (U.S. Department of Veterans Affairs)
  • For eligible veterans, active-duty service members, and some military spouses.
  • No down payment or PMI.
  • Competitive interest rates.
  • Funding fee may apply.
• USDA Loans (U.S. Department of Agriculture)
  • For rural and some suburban homebuyers.
  • No down payment.
  • Income limits apply.
• Jumbo Loans
  • For homes that exceed conforming loan limits (e.g., over $766,550 in most areas for 2025).
  • Requires strong credit and higher income.
  • Larger down payment often needed.
     

The Home Purchase Loan Process

• Pre-Approval
  • Get pre-approved by a lender to understand your budget and show sellers you're serious.
• Loan Application
  • Submit an official application with documents (W-2s, bank statements, etc.).
• Home Shopping
  • Work with a real estate agent to find a home within your budget.
• Loan Processing & Underwriting
  • Lender verifies all information and assesses your risk.
• Appraisal & Inspection
  • Property is appraised to ensure it's worth the loan amount. Inspections check for issues.
• Loan Approval & Closing Disclosure
  • Receive final terms of your loan. Review them carefully.
• Closing Day
  • Sign paperwork, pay closing costs/down payment, and get your keys!

Why Pre-Qualify with Us?