The standard mortgage for buyers with solid credit and verifiable W-2 income.
- ›Down payment as low as 3%, though 20% eliminates Private Mortgage Insurance (PMI)
- ›Loan amounts up to the conforming limit (updated annually by FHFA — check with your lender for current figures)
- ›Credit score: 680+ for competitive rates; 740+ for the most favorable rates
- ›Fixed (15 or 30-year) and adjustable-rate (ARM) options available
- ›PMI is cancelable once you reach 20% equity — unlike FHA mortgage insurance
Commonly used by: Buyers with 20%+ down payment, stable employment, and strong credit.
Backed by the Federal Housing Administration — designed for buyers with limited down payment or lower credit scores.
- ›Down payment as low as 3.5% with a 580+ credit score
- ›10% down required if credit score is 500–579
- ›Mortgage Insurance Premium (MIP) required for the life of the loan if <10% down
- ›Loan limits vary by county and are updated annually — check with your lender for current limits in Sarasota/Manatee
- ›Property must meet FHA condition standards — some sellers resist FHA offers
Commonly used by: First-time buyers or those with limited savings or credit scores below 700.
Guaranteed by the Department of Veterans Affairs — one of the most powerful loan products available to those who qualify.
- ›Zero down payment required — no PMI
- ›Competitive interest rates, often lower than conventional
- ›Available to eligible veterans, active duty, National Guard, reservists, and surviving spouses
- ›One-time VA Funding Fee (can be financed into the loan)
- ›No loan limit for eligible borrowers with full entitlement
Commonly used by: Veterans and active-duty military who qualify — widely considered one of the most advantageous loan programs available.
For self-employed buyers whose tax returns show lower income due to business deductions — lender qualifies based on actual cash flow, not taxable income.
- ›12–24 months of personal or business bank statements used to calculate income
- ›No tax returns, no W-2s, no pay stubs required
- ›Down payment typically 10–20%
- ›Rates slightly higher than conventional — tradeoff for flexible income documentation
- ›Available for primary residences, second homes, and investment properties
Commonly used by: Business owners, freelancers, contractors, and self-employed buyers who show significant write-offs.
Debt Service Coverage Ratio loans qualify based on the investment property's rental income — not the borrower's personal income.
- ›No personal income verification, no tax returns, no employment documentation
- ›Qualification is based on whether rent covers the mortgage payment (DSCR ≥ 1.0–1.25)
- ›Typically 20–25% down payment required
- ›Works for long-term rentals, short-term rentals (Airbnb/VRBO), and mixed-use
- ›Can be used to build a rental portfolio without income limits holding you back
Commonly used by: Investors purchasing rental properties who want to qualify on the property's cash flow.
For loan amounts above the conforming limit — required for many mid-range to luxury purchases in Southwest Florida.
- ›Kicks in above the current conforming limit (updated annually by FHFA)
- ›Typically requires 10–20%+ down payment and strong cash reserves
- ›Minimum credit score usually 720–740+
- ›Rates are often competitive — sometimes lower than conventional on large balances
- ›Stricter debt-to-income requirements; lender may require significant reserves
Commonly used by: Buyers of homes priced above ~$950K or needing loan amounts above the conforming limit.
Short-term financing to buy your next home before your current one sells — lets you make a clean, non-contingent offer.
- ›Typically 6–12 month term; paid off when current home sells
- ›Secured against your existing home's equity
- ›Higher interest rate than long-term loans — designed for speed, not permanence
- ›Eliminates the need for a home sale contingency in your offer
- ›Availability and terms vary significantly by lender
Commonly used by: Buyers who need to act quickly and can't wait for their current home to sell first.
Backed by the U.S. Department of Agriculture — zero down payment for eligible properties in qualifying areas.
- ›Zero down payment required
- ›Income limits apply (based on household size and county median income)
- ›Property must be in a USDA-eligible area — parts of Sarasota/Manatee counties qualify
- ›Upfront and annual guarantee fees replace PMI (generally lower than FHA MIP)
- ›Primary residence only; must meet property condition requirements
Commonly used by: Buyers looking at properties outside urban cores who meet income requirements — worth checking.
⚡Hard Money / Asset-Based
Investors · Fast CloseShort-term, asset-based financing for investors who need to close fast or don't qualify for traditional loans.
- ›Qualification based on the property's value, not borrower income or credit
- ›Closing in days, not weeks — critical for time-sensitive deals
- ›High interest rates (8–15%+) and origination fees
- ›Short loan terms (6–24 months) — requires a clear exit strategy (sell or refinance)
- ›Common in fix-and-flip, distressed property, or non-warrantable condo purchases
Commonly used by: Experienced investors who need speed or are buying properties that don't qualify for conventional financing.