Real Estate Financing Options

A Federal Housing Administration (FHA) loan is a government-backed mortgage designed for low-to-moderate-income borrowers. It offers lower down payment requirements and flexible credit standards, making it an accessible option for first-time homebuyers. 

A conventional loan is not government-backed and typically follows guidelines set by Fannie Mae and Freddie Mac. It offers a range of down payment options and is ideal for borrowers with strong credit and financial stability. 

A United States Department of Agriculture (USDA) loan is intended for rural and suburban homebuyers with limited income. It offers competitive rates and zero down payment, promoting homeownership in eligible areas. 

A Veterans Affairs (VA) loan is exclusively available to eligible veterans, active-duty service members, and certain military spouses. It provides favorable terms, including zero down payment and no private mortgage insurance (PMI) requirement. 

A Debt Service Coverage Ratio (DSCR) loan is common in commercial real estate. Lenders assess the property's cash flow to ensure it generates enough income to cover loan payments, helping mitigate risks for investors. 

A hard money loan is a short-term, high-interest loan typically used by real estate investors for quick financing. These loans are secured by the property itself and are based on its value rather than the borrower's creditworthiness.