Loan Options: Finding the Right Loan for You

Buying a home is one of the biggest financial decisions you’ll make, and the right loan program can make all the difference. At Clear Home Loans, we believe in making the process simple and transparent. That’s why we offer a range of mortgage options—whether you’re a first-time buyer, a military veteran, or looking to upgrade your forever home. Each program comes with unique benefits designed to fit different financial goals and situations. Explore your options below and discover which path will help you achieve your dream of homeownership with confidence.

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Our Loan Options

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Conventional Loans

Conventional loans are one of the most popular options for homebuyers. Backed by Fannie Mae and Freddie Mac, these loans typically require good credit and a minimum down payment starting at 3%. They’re flexible, available for primary homes, second homes, or investment properties, and often allow you to avoid mortgage insurance once you reach 20% equity.

FHA Loans

FHA loans are designed to make homeownership more accessible, especially for first-time buyers. With down payments as low as 3.5% and more flexible credit requirements, FHA loans can be a great option if you’re just starting out or working to rebuild your credit. These loans are insured by the Federal Housing Administration, offering peace of mind for both lenders and borrowers.

VA Loans

Available exclusively to veterans, active-duty service members, and eligible surviving spouses, VA loans offer unmatched benefits. With no down payment, no private mortgage insurance, and competitive interest rates, VA loans make it easier for those who have served to achieve homeownership. It’s one of the best ways to thank our military families for their service.

USDA Loans

USDA loans are designed to help buyers in eligible rural and suburban areas. With no down payment required and reduced mortgage insurance costs, these loans are perfect for families who want to enjoy homeownership outside of busy city centers. Income limits apply, but many buyers are surprised to find they qualify.

Jumbo Loans

If you’re buying a high-priced home that exceeds conventional loan limits, a jumbo loan might be right for you. Jumbo loans are designed for luxury or higher-value properties and typically require stronger credit and higher down payments. They allow you to finance the home you love without splitting the mortgage into multiple loans.

Adjustable- Rate Mortgages

An ARM offers a lower initial interest rate that adjusts after a set period of time. This can be a smart option if you plan to sell or refinance before the rate changes, giving you savings upfront. ARMs provide flexibility for buyers who don’t plan on staying in their home long-term.

Fixed-Rate Mortgages

The most straightforward option, a fixed-rate mortgage locks in your interest rate for the entire life of the loan. This means predictable monthly payments and long-term stability, making it one of the most popular choices for homeowners who plan to stay in their homes for many years.

Reverse Mortgages

A reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into cash without selling their home or taking on a new monthly mortgage payment. Instead, repayment happens when the borrower sells the home, moves out, or passes away. This program can provide supplemental income in retirement, help cover medical expenses, or fund lifestyle needs, all while allowing you to stay in the home you love.

Bank Statement Loans

Perfect for self-employed borrowers, bank statement loans use your personal or business bank deposits to verify income rather than tax returns. This program helps entrepreneurs, business owners, and contractors who may show lower income on paper but have strong cash flow.

Asset Depletion Loans

Asset depletion programs let you qualify based on liquid assets instead of traditional income. Lenders calculate an income stream from your savings, retirement funds, or investments. This can be a great solution for retirees or high-net-worth borrowers who have strong assets but limited documented income.

HELOCs

A Home Equity Line of Credit, or HELOC, lets you tap into the equity you’ve built in your home and use it as a revolving line of credit—similar to a credit card, but with much lower rates. You can borrow as needed for things like home improvements, debt consolidation, education, or unexpected expenses, and you only pay interest on the amount you use. HELOCs offer flexibility and can be a smart way to put your home’s value to work for you.

DSCR Loans

DSCR loans are designed for real estate investors. Instead of relying on personal income, these loans qualify based on the rental income the property generates compared to the expenses. This makes them an excellent choice for borrowers who want to build their rental portfolio without traditional income documentation.

Frequently Asked Questions

1. How much do I need for a down payment?

Many buyers believe they need 20% down, but that’s not always the case. Conventional loans can start as low as 3%, FHA requires 3.5%, and VA or USDA loans may allow zero down. The right option depends on your credit, income, and the loan program that best fits your needs.

2. What credit score do I need to qualify?

Generally, a score of 620 is the baseline for conventional loans, while FHA loans may allow scores as low as 580 with 3.5% down. VA and USDA loans are more flexible and often don’t have strict minimums. That said, higher credit scores can mean better interest rates and terms.

3. How much house can I afford?

Affordability depends on your income, debts, down payment, and current interest rates. Lenders usually look at your debt-to-income (DTI) ratio to determine a comfortable payment. Getting pre-approved is the best way to know exactly how much home you can afford before you start shopping.

4. What are closing costs, and how much will they be?

Closing costs typically range from 2%–5% of the home’s purchase price. They include items like appraisal fees, title insurance, taxes, and lender fees. Sometimes, sellers can help cover part of these costs, and there are also loan programs that offer assistance.