When financing a home, most buyers are already familiar with conventional loans, FHA loans, and jumbo mortgages. However, there are other financing options that may be a better fit depending on your situation.
Let’s talk about some lesser-known home loan programs that could help you purchase your next property:
Physician loans
Designed for doctors and medical professionals, these loans offer little to no down payment and do not require private mortgage insurance (PMI).
Bridge loans
A bridge loan is a short-term loan that helps buyers purchase a new home before selling their current one. It provides immediate cash flow by using the equity in your existing home, allowing for a smooth transition without waiting for the sale to close.
Energy-efficient mortgages
This type of loan allows buyers to roll the cost of energy-efficient upgrades into their mortgage. It is ideal for those purchasing homes that need improvements like solar panels, new windows, or upgraded insulation, as it finances the upgrades without requiring additional out-of-pocket expenses.
Bank statement loans
For self-employed individuals or those with non-traditional income, bank statement loans provide an alternative to standard income verification. Instead of tax returns or pay stubs, lenders review 12 to 24 months of bank statements to determine loan eligibility.
Asset depletion loans
This type of loan is ideal for high-net-worth individuals who may not have a traditional income but have substantial assets. Lenders calculate an applicant's ability to repay the loan by assessing their liquid assets rather than income.
USDA construction-to-permanent loans
Most people are familiar with USDA loans for rural properties, but did you know about the construction-to-permanent option? It allows buyers to finance land, construction costs, and the final mortgage in one loan. It is ideal for those looking to build a custom home in eligible rural areas.
Delayed financing
For buyers purchasing a home with cash, delayed financing allows them to refinance immediately after closing to recover their liquid funds. This strategy is beneficial for investors or those who want to stay competitive in a strong market while maintaining financial flexibility.
Finding the right loan
Did any of these resonated with you? Consulting with a knowledgeable real estate agent and a mortgage professional can help you access the best option for your needs.
Kelli Eggen
