WhaWhat Is a Purchase Loan?
A purchase loan is a mortgage used to finance the acquisition of a primary residence, second home, or investment property. Buyers in Lincoln, Omaha, and throughout Nebraska use purchase loans to secure long-term financing while spreading the cost of homeownership over time.
Purchase loans are available through a variety of mortgage programs, each designed to serve different borrower profiles. Some programs focus on low down payment options, others prioritize flexible credit guidelines, and some are designed specifically for veterans, rural buyers, or higher-value properties.
The right purchase loan depends on factors such as income, credit profile, down payment strategy, property type, and long-term plans. Because no two buyers are the same, purchase loans are best evaluated by comparing multiple programs rather than defaulting to a single option.
Whether you are buying your first home or upgrading to your next one, a purchase loan provides the structure needed to turn a signed contract into successful homeownership.
Potential Benefits of a Purchase Loan
Purchase loans offer flexibility and structure to support a wide range of homebuyers.
Wide Range of Loan Programs
Buyers can choose from conventional, FHA, VA, USDA, and specialty loan options depending on eligibility and goals.
Flexible Down Payment Options
Many purchase loans offer low down payment or no down payment options, helping reduce upfront costs.
Competitive Interest Rates
Mortgage rates are typically lower than other forms of long-term borrowing, supporting affordability over time.
Long-Term Financing Stability
Purchase loans provide predictable payment structures designed for long-term homeownership.
Who Might Consider a Purchase Loan?
A purchase loan may be a good option if you fit one or more of the following profiles:
- First-time homebuyers entering the market
- Repeat buyers purchasing a new primary residence
- Buyers relocating within Nebraska
- Homebuyers using specialized loan programs
Things to Consider
While purchase loans offer many advantages, there are important factors to review:
- Down payment and closing cost requirements
- Credit and income qualification standards
- Property type and occupancy rules
- Long-term affordability and payment comfort
- Eligibility for loan programs depends on your specific financial situation, credit profile, and property details. This information is for educational purposes only and does not constitute a commitment to lend.
Loan Products Offering Cash-Out Refinances
Conventional Loans
A conventional cash-out refinance allows qualified homeowners to tap into their home’s equity for expenses such as debt consolidation, renovations, or investments while maintaining competitive interest rates.
FHA Loans
An FHA cash-out refinance provides access to home equity with more flexible credit guidelines, making it a popular option for homeowners who may not qualify for conventional financing.
VA Loans
A VA cash-out refinance allows eligible veterans and service members to access their home equity, often with higher allowable loan-to-value limits and no monthly mortgage insurance.
Reverse Mortgage
A reverse mortgage cash-out refinance lets homeowners age 62 and older convert home equity into available funds without required monthly mortgage payments, helping support retirement income or large expenses.
Non-QM
A Non-QM cash-out refinance is designed for borrowers with unique income situations or credit profiles, offering flexible qualification options beyond traditional lending guidelines.
Jumbo Loans
A jumbo cash-out refinance is ideal for higher-value properties, allowing homeowners to access substantial equity while staying within loan structures designed for larger balances.
Purchase Loan FAQs
What types of homes can I buy with a purchase loan?
Purchase loans can be used for a wide range of property types, including single-family homes, townhomes, approved condominiums, and certain modular homes. Property eligibility depends on the loan program and occupancy type.
Can I use down payment assistance with a purchase loan?
Mortgage proceeds are generally not taxable. Consult a tax professional.
How much do I need for a down payment?
Down payment requirements vary by loan program. Some programs allow low down payments or no down payment at all, while others require higher amounts depending on credit profile and property type.
Do I need to be a first-time buyer to qualify for a purchase loan?
No. Purchase loans are available to both first-time and repeat buyers. Eligibility is based on financial qualifications and loan program guidelines, not buyer history alone.