Starting Your Homebuying Journey
Thinking about buying a home? That’s really exciting! Whether you're just starting to daydream or you're ready to get started, the home buying process can feel like a lot. Don’t worry—you’re not alone. We can help take the intimidation out of it. From figuring out what you can afford to exploring different types of home loans (like conventional, FHA, USDA, or VA), there’s a clear path forward once you know the basics. Here’s some information to help you start your home buying journey with confidence. To start with, the loan process has a few important steps. Check out the graphic below:
When it comes to buying a home, one of the biggest pieces of the puzzle is figuring out how you're going to pay for it—and that usually means getting a mortgage. The good news? There are several types of home loans out there, and each one is designed to fit different situations and needs. You've probably heard of conventional loans, which are the most common, but there are also government-backed options like FHA loans (great for first-time buyers), VA loans (for eligible veterans and active-duty military), and USDA loans (for homes in certain rural areas). Each loan type has its own perks, requirements, and down payment options, so it's all about finding the one that makes the most sense for you and your financial situation. See a better description of the most popular loan types here:
TYPES OF LOANS
CONVENTIONAL
Your standard traditional mortgage
Not insured or guaranteed by the government like FHA, VA, & USDA loans
All occupancy types accepted
Stricter credit standards in general
No mortgage insurance is required with a 20% or more down payment
Interest rates may vary, depending largely on credit score and down payment
FHA
Minimum property standards
Requires you to get mortgage insurance, which protects the lender from a loss
Low down payment requirement (as low as 3.5%)
Requires a minimum credit score of 580
Two mortgage premiums required (1.75% up front and 0.55% annually)
Much easier to qualify for than Conventional loans
USDA
Primary residence that must be located in a USDA eligible (rural) area
No down payment
2 mortgage premiums required (1% upfront and .35% monthly)
Allowable expenses may be deducted from your annual income to keep you under the limit
Closing costs can be rolled into the loan
Annual household income limits apply
Requires a minimum credit score of 580
VA
Similar property standards as FHA and USDA
No down payment
Private mortgage insurance (PMI) NOT required
Available to active or retired military or unmarried surviving spouse of a veteran
Charges a VA funding fee which can be financed into the loan (waived for disabled veterans)
Can be used to buy or build a home, refinance a loan, or improve an existing home
Requires a minimum credit score of 580
COMMUNITY CHAMPIONS
Serving Those Who Serve Us
A Flat Branch exclusive program for EMTs, fire department staff, police department staff, 911 staff, school staff, or active-duty military that credits up to $900 of closing costs as well as free appraisal (up to $500) for eligible loans
Buying a home is a big step, but it doesn’t have to be a stressful one. Once you understand the process and the different types of loans available, you’ll be in a much better position to make smart, confident decisions. Whether you go with a conventional loan or explore one of the government-backed options like FHA, VA, or USDA, the right fit is out there for you. Just take it one step at a time, and know that we’re here to help. Don’t be afraid to ask questions along the way. Before you know it, you’ll be unlocking the door to your new home.
