Your guide to financing a new home with confidence
At-a-Glance
- Purpose: Finance the purchase of a primary home, vacation property, or investment real estate
- Typical Terms: 15–30 year fixed, or 5/6/7/10-year ARM options
- Down Payments: As low as 0% (VA/USDA), 3% (Conventional), or 3.5% (FHA)
- Who It Helps: First-time buyers, move-up homeowners, military families, rural purchasers, and high-net-worth borrowers seeking jumbo financing
Why Choose a Purchase Loan?
Buying a home is often the largest financial decision you’ll make. A well-structured purchase mortgage can:
- Lock in Today’s Rate – Protect yourself from future interest-rate swings.
- Leverage Affordable Down-Payment Options – Keep more cash on hand for closing costs or renovations.
- Build Equity from Day One – Monthly payments turn into long-term wealth instead of rent.
- Unlock Tax Advantages – Potential mortgage-interest and property-tax deductions.*
- Support Financial Goals – Choose fixed or adjustable terms to match your timeline and risk tolerance.
*Consult a licensed tax professional for personalized advice.
Popular Purchase-Loan Programs
| Loan Type | Ideal Borrower | Minimum Down | Notable Features |
|---|---|---|---|
| Conventional (Fannie/Freddie) | Buyers with good credit (≥620) | 3%* | Cancel PMI at 80% LTV; flexible property types |
| FHA | First-timers & credit-challenged (≥580) | 3.5% | Lenient underwriting; assumable loan |
| VA | Eligible veterans & active-duty | 0% | No PMI; limited closing costs; assumable |
| USDA | Rural & suburban buyers | 0% | Income-capped; property location restrictions |
| Jumbo | High-value homes above conforming limits | 10–20% | Custom underwriting; interest-only options |
| Down-Payment Assistance (DPA) | Qualified low-to-moderate-income buyers | Varies | Grants or forgivable seconds lower out-of-pocket costs |
*3% requires HomeReady / Home Possible or first-time buyer status.
The MortgageInsights.org Advantage
- Rate Watch & Alerts: Real-time rate tracker with email/text notifications
- Transparent Fees: Up-front Loan Estimates so there are no surprises at closing
- Expert Content: Guides, videos, and our A–Z Mortgage Glossary demystify every step
- Veteran Focus: Dedicated VA specialists for military families
- Tech-Enabled Speed: Secure digital portal for docs, e-signatures, and milestone updates
Your Path to Homeownership
- Pre-Approval (24 hrs) – Verify income, credit, and buying power.
- Home Shopping – Make stronger offers with an approval letter in hand.
- Offer Accepted – Order appraisal, title search, and lock your rate.
- Underwriting & Conditions – Upload remaining documents in our portal.
- Clear to Close – Review Closing Disclosure, schedule closing time.
- Sign & Fund – Get the keys and celebrate becoming a homeowner!
Average contract-to-close: 21 days; rush options available.
Tools & Resources
- Payment Calculator – Estimate monthly PITI in seconds
- Affordability Calculator – Find your maximum purchase price
- First-Time Buyer Playbook – Step-by-step roadmap (downloadable PDF)
- Glossary – Confused by LTV or DTI? Check our comprehensive terms list
- Rate Trend Blog – Weekly commentary on macro data and mortgage pricing
Frequently Asked Questions
How much home can I afford?
Lenders evaluate your Debt-to-Income (DTI) Ratio—generally 43% or lower for most programs.
Will I need mortgage insurance?
Yes if your down payment is <20% on a conventional loan (PMI) or anytime you use FHA (MIP). VA and USDA loans do not require monthly MI.
Can I use gift funds?
Absolutely—most programs allow gifts from relatives for down payment and closing costs, subject to documentation.
What credit score do I need?
620+ for standard conventional; FHA may approve at 580; VA has no formal minimum but lender overlays apply.
How long is a pre-approval good for?
Typically 60–90 days. Updating is quick—just provide recent pay stubs and bank statements.
Ready to Start?
Get personalized rates in minutes—no commitment, no credit impact.*
[Get Pre-Approved] →
*Soft-pull credit option available for rate quotes; full underwritten approval requires a hard inquiry.