Purchase Loans

Financing to help you buy your next home.

Whether buying a first home, upgrading to a larger space, or purchasing an investment property, a purchase loan can provide the financing needed to secure the right property.

Freddie Mac’s BorrowSmart AccessSM mortgage aims to assist borrowers by providing built-in down payment/closing cost assistance.
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Purchase Loan

Features

Program Benefits

Purchase loans come with flexible options tailored to homebuyers' needs.
01

Variety of Loan Programs

Options range from conventional, FHA, VA, and USDA loans, catering to different financial situations and eligibility.

02

Down Payment Options

Depending on the loan type, down payment requirements can vary, with some options requiring as little as 3% down.

03

Fixed and Adjustable Rates

Choose what works best for your budget and goals.

04

Loan Term Flexibility

Purchase loans offer a range of repayment terms, from short-term to longer 30-year options.

05

Loan Term Flexibility

Purchase loans offer a range of repayment terms, from short-term to longer 30-year options.

06

Loan Term Flexibility

Purchase loans offer a range of repayment terms, from short-term to longer 30-year options.

Benefits of a

Benefits of an

Purchase Loan

Freddie Mac BorrowSmart SM

Benefits of

Purchase Loan

Freddie Mac BorrowSmart SM

Stability Over Renting

Buying a home offers long-term stability and security, eliminating the uncertainty of rising rent costs.

Build Equity Over Time

As you pay down your mortgage, you gradually build equity. This equity can be leveraged for future financial needs, including retirement planning.

Personalize Your Living Space

Enjoy greater freedom to customize and renovate your home to fit your lifestyle.

Tax Benefits

In many cases, homeowners can take advantage of tax deductions on mortgage interest, potentially reducing tax liability.

Expert guidance for homeownership

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Let A and N Mortgage guide you through the home-buying process with personalized support and years of experience.

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Loan Program
Frequently Asked Questions

What types of purchase loans are available?

There are several purchase loan options, each designed to meet different financial needs:

  • Conventional Loans: Popular for buyers with strong credit, offering flexible terms and competitive rates.
  • FHA Loans: Ideal for first-time buyers or those with lower credit scores, featuring low down payment options.
  • VA Loans: Exclusive to veterans and active-duty military, VA loans offer zero-down payment and no private mortgage insurance (PMI).
  • USDA Loans: Tailored for buyers in rural areas, offering no down payment and low mortgage insurance.

How do I get pre-approved for a purchase loan?

Getting pre-approved for a purchase loan is a critical first step in the homebuying process. Here’s how it works:

  • You’ll start by providing some basic financial details, such as your income, debts, and credit score.
  • We will take a look at the information and assess how much financing you may qualify for. This step gives you a clearer idea of your budget, so you’re not guessing when it’s time to shop for homes.
  • If everything looks good, you’ll get a pre-approval letter that shows sellers you’re serious and financially ready to make an offer.
  • With your pre-approval in hand, you can search for homes knowing exactly what you can afford. It also shows sellers you’re a strong buyer, which could give you an edge in competitive markets.

Pre-approval shows sellers you're serious and financially prepared to purchase, making your offer more attractive in competitive markets.

How much do I need for a down payment?

Down payment requirements vary by loan type. Conventional loans may require as little as 3%, while VA and USDA loans can offer zero-down payment options.

What credit score is needed for a purchase loan?

Credit score requirements depend on the loan type. Conventional loans typically require a score of 620 or higher, while FHA loans are more lenient, accepting scores as low as 580.

‍Can I qualify for a mortgage as a first-time homebuyer?

Yes, first-time homebuyers have access to a variety of programs designed to make homeownership more accessible. Here’s what you can expect:

  • Low Down Payment Options: Programs like FHA loans require as little as 3.5% down, and some conventional loans offer down payments as low as 3%.
  • Down Payment Assistance: Many local and state programs offer grants or low-interest loans to help first-time buyers cover down payment and closing costs.
  • Special Loan Programs: VA loans (for veterans) and USDA loans (for rural properties) offer zero-down payment options for those who qualify.
  • Credit Flexibility: Some first-time buyer programs are more lenient on credit score requirements, making it easier for people with less-than-perfect credit to qualify.

If you’re a first-time buyer, these programs can make homeownership more affordable and achievable. We would love to helo guide you through the process.

How long does the purchase loan process take?

The loan process typically takes 30 to 45 days, but it can vary depending on the loan type and property conditions.

What costs are involved in getting a mortgage?

Closing costs usually range from 2% to 5% of the purchase price and can include fees like title insurance, appraisal fees, and other related expenses.

Can I include closing costs in the loan amount?

In some cases, borrowers may be able to roll closing costs into the loan, especially with specific loan programs like VA or USDA loans.

What is the difference between fixed-rate and adjustable-rate loans?

A fixed-rate loan maintains the same interest rate and payments throughout the loan term, while an adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market conditions.

What is private mortgage insurance (PMI), and when is it required?

PMI is required for conventional loans with less than 20% down. It can be removed once sufficient equity is built.

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Get Pre-Approved Fast!

Welcome to a better mortgage experience! In just few minutes you can find out what you qualify for and explore multiple loan options and interest rates. Complete our short and intuitive pre-approval interview to get started.

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Let's Crunch Some Numbers

Use our calculators to discover your potential path to homeownership..