Financing Options

There are a multitude of loan options available for home buyers seeking a mortgage. We can recommend fantastic lenders to work with if you don’t already have your own.

Explore the specifics of each loan by clicking on each type below:

A conventional loan is a type of mortgage that is not government-insured or guaranteed. It is instead backed by private lenders such as banks and mortgage companies and adheres to underwriting guidelines established by government-sponsored entities such as Fannie Mae and Freddie Mac. Conventional loans are available in a variety of terms, such as fixed-rate or adjustable-rate, and can be used to purchase a home or refinance an existing mortgage. They usually require a higher credit score than government-backed loans, but they may have lower interest rates and more flexible underwriting criteria.

Loan Maximum: In metro Atlanta it is $726,200. Jumbo loans allow you to stretch beyond this limit.

Did You Know? Conventional loans are the most common type of mortgage. While they have more stringent requirements, they also offer more flexibility in loan terms and property type.

To qualify for a conventional loan, you’ll typically need:

Down payment: At least 3% of the purchase price, although 20% is preferred to avoid PMI.
Credit score: At least 620 or higher.
Credit history: No recent bankruptcies, foreclosures, or serious delinquencies.
Debt-to-income ratio: 45% or lower but some lenders may bump it to 50% with higher credit scores.
Stable employment: A minimum of two years on the job.
Proof of income: Pay stubs, tax returns and bank statements. More if you're self-employed.
Property condition: Property that meets the lender’s minimum property standards.

These are general guidelines and specific requirements may vary by lender. If you have any concerns about your eligibility, it’s a good idea to talk to a loan officer to review your individual financial situation.

An FHA loan is a mortgage that is insured by the Federal Housing Administration. FHA loans are for primary residences only. It has lower down payment requirements and less stringent credit score requirements to help low-income and first-time home buyers qualify. The FHA insures the lender, but the borrower is responsible for mortgage insurance premiums (MIP) for the life of the loan. Because this insurance can raise your monthly mortgage payment, you should carefully consider your financial situation before deciding whether an FHA loan is right for you.

Loan Maximum: In metro Atlanta it is $592,250. In the counties outside of the metro area, the loan limit is $472,030. Here’s a link with each county’s limit.

Did You Know? Since 2013, FHA loans with a down payment of 3.5% can no longer remove mortgage insurance premiums (MIP) when they reach 78% loan-to-value ratio (LTV). However, MIP *CAN* be removed if you put 10% down, make payments for at least 5 years and reach 78% loan-to-value ratio (LTV).

To qualify for an FHA loan, you’ll typically need:

Primary residence: The property must be the borrower's primary residence and sole current FHA loan.
Down payment: At least 3.5% of the purchase price.
Credit score: At least 580 or higher.
Credit: history: A clean credit history, without recent bankruptcies, foreclosures, or serious delinquencies.
Debt-to-income ratio: 43% or lower.
Stable employment: A minimum of two years on the job.
Proof of income: Pay stubs, tax returns and bank statements. More if self-employed.
Property condition: A property that meets the lender’s minimum property standards.
Mortgage Insurance: Payment of an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP).

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs to help eligible military veterans, active-duty personnel, and surviving spouses buy a home with no down payment and favorable loan terms. VA loans are issued by private lenders and backed by the VA, allowing for lower interest rates and no PMI. Eligibility requires meeting specific VA requirements and obtaining a certificate of eligibility, with some restrictions on property type and loan amount. Loan Maximum: If you have full entitlement, you don’t have a loan limit. If you have remaining entitlement, you do have a loan limit. If you meet at least one of the following requirements, you have full entitlement: 1. You have never used your home loan benefit; or 2. You have paid off a previous VA loan in full and sold the property; or 3. You have used your home loan benefit but had a foreclosure or compromise claim (also known as a short sale) and repaid the VA in full.

Did You Know? VA loans are eligible for the VA Interest Rate Reduction Refinance Loan (IRRRL) program, which allows homeowners to refinance their existing VA loans to take advantage of lower interest rates. This can result in significant monthly savings and a quicker pay-off of the mortgage.

To qualify for a VA loan, you’ll typically need:

Proof of military service: Active duty, veteran or a surviving spouse.
Certificate of Eligibility: You must obtain your Certificate of Eligibility (COE) from the VA.
Primary residence: The property must be the borrower's primary residence.
Credit score: Th VA doesn't require a minimum credit score but individual lenders may require 620 or higher.
Credit history: no recent bankruptcies, foreclosures, or serious delinquencies.
Debt-to-income ratio: 41% or lower.
Stable employment: A minimum of two years on the job.
Proof of income: Pay stubs, tax returns and bank statements. More if you're self-employed.
Property condition: The property must meet the VA's minimum property standards.

These are general guidelines and specific requirements may vary by lender. If you have any concerns about your eligibility, it’s a good idea to talk to a loan officer that specializes in VA loans to review your individual financial situation.

A USDA home loan, also known as a USDA Rural Development Loan, is a government-backed mortgage program offered by the U.S. Department of Agriculture (USDA). It is designed to provide affordable financing to low- and moderate-income households in rural areas to purchase, build, or improve a home. A USDA home loan has several advantages over traditional mortgage options, including: 1. No down payment required. 2. Lower interest rates. 3. Flexible credit requirements.

Loan Maximum: It varies by eligible county. In eligible areas in Bartow, Carroll, Cherokee, Douglas and Paulding counties for instance, it’s $377,200. For counties a bit further out like Floyd and Polk, it’s $336,500. Whereas Cobb, Dekalb and Fulton are not eligible. Here’s a link to the USDA’s Loan Limit Map

How do I know if an address is eligible? Use the USDA’s address verification tool, click here.

Did You Know? The USDA's home loan program was first offered in the United States in 1949. The program was created to help increase homeownership and improve the quality of life in rural areas by making financing more accessible to low- to moderate-income home buyers.

To qualify for a USDA loan, you’ll typically need:

Property location: The property must be in an eligibile USDA area.
Credit score: Most lenders will typically require a score of 620 or higher.
Debt-to-income ratio: Most lenders will require 41% or lower.
Income limits: You must meet the income limits for the area based on location and household size.
Stable income: Proof of income, including pay stubs and W-2 forms. More if you're self-employed.
Credit history: A clean credit history, without recent bankruptcies, foreclosures, or serious delinquencies.
Home ownership: If you've owned a home in the past, there may be restrictions on your eligibility.
Property condition: A property that meets the lender’s minimum property standards.

Jumbo loans are used when a regular conventional loan won’t be enough to cover the purchase of a high value home due to the conventional loan’s limit of $726,200. Jumbos stretch beyond this limit. They come at a cost of requiring a higher credit score, income and down payment and often carry a higher interest rate.

Loan Maximum: Maximums can vary widely depending on the lender. Some lenders cap the size of the loan at $2-4 Million, while others will let you borrow significantly more, such as $5-10 Million or more.

Did You Know? Jumbo loans can be used for a variety of purposes, including purchasing a primary residence, a second home, or investment property.

To qualify for a Jumbo loan, you’ll typically need:

Down payment: From 10-25% depending on the lender.
Credit score: A credit score of at least 700 or higher.
Credit History: A clean credit history, without recent bankruptcies, foreclosures, or serious delinquencies.
Debt-to-income ratio: of 43% or lower.
Stable employment: A stable employment history, with a minimum of two years on the job.
Proof of income: Pay stubs, bank statements and tax returns. More if self-employed.
Cash reserves: Enough cash and assets in reserve to cover 6-12 months of mortgage payments.
Property condition: A property that meets the lender’s minimum property standards.

A Physician Loan, also known as a Doctor Loan, is a type of mortgage loan specifically designed for physicians, dentists, veterinarians and other medical professionals. These loans often offer special benefits, such as low down payment requirements, no mortgage insurance and flexible qualification criteria.

For instance, some physician loans may require as little as 0-5% down. Furthermore, some loans take into account your high levels of student loan debt and offer flexible qualification criteria that allow you to still qualify for a loan. Physician loans aren’t usually offered with a fixed rate, though some lenders do have them.

Loan Maximum: Similar to Jumbo loans, it varies wildly from lender to lender. Many have a sliding cap, so $1 Million at 0% down, $2 Million at 10% down and so forth.

Did You Know? Physician loans are specifically designed for the unique financial situation of medical professionals, taking into account factors like student loan debt, irregular income, and limited work history. This allows medical professionals to obtain the financing they need to purchase a home and build wealth.

To qualify for a Physician loan, you’ll typically need:

Primary residence: The property must be the physician's primary residence.
Down payment: Many physician loans are offered at 0% down.
Credit score: It varies, some lenders may not require a higher score.
Credit history: A clean credit history, without recent bankruptcies, foreclosures, or serious delinquencies.
Debt-to-income ratio: Lenders will often allow a DTI ratio higher than 50%.
Proof of employment: Proof of employment as a physician, such as a contract or letter from your employer.

It is important to check with a lender for their specific requirements for a physician home loan and to compare offers from multiple lenders to ensure you are getting the best deal for your needs.

In addition to the other loans outlined above, there are some options that allow for creative financing when and where applicable. The following loan types also carry varying degrees of risk. Please make sure you understand the risks by discussing the pros and cons with your agent and with a qualified loan officer that specializes in the type of creative financing you’re interested in.

Other types of mortgage financing options:

Adjustable-Rate Mortgages (ARMs): A mortgage with an interest rate that changes over time based on a specified index.
Balloon Mortgages: Typically 5-7 years with interest-only payments and followed by a lump sum payment to pay off the balance.
Interest-Only Mortgages: Make interest-only payments for 5-10 years until interest and principal payments are required.
Reverse Mortgages: A loan for senior citizens, allowing them to convert the equity in their home into cash.
Fixed-Rate Mortgages: A mortgage with an interest rate that remains fixed for the life of the loan.
Bridging Loans: A short-term loan used to "bridge the gap" between buying a new home and selling an existing one.

Financing Options