What a Purchase Home Loan Actually Is, and How Ours Are Different in 2026

A purchase home loan is a mortgage used to finance the purchase of a residential property. That definition is the floor. At BuildBuyRefi.com in 2026, a purchase loan includes a structural option most banks do not offer: the ability to pair the mortgage with up to *$50,000 in optional unsecured Consumer Loan funds, available before, at, or after closing, for qualified borrowers.

That pairing is the reason this guide exists as a pillar resource. If you can read only one section before you talk with a banker, read this one and Section 2.

Where BuildBuyRefi.com Goes Further Than a Standard Mortgage

Most lenders solve half of the home-buying picture. They lend you money to buy the house. They walk away when you do not have enough cash left to furnish it, move into it, or maintain a reserve cushion after closing.

BuildBuyRefi.com is a division of The Federal Savings Bank, a federally chartered, FDIC-insured, veteran-owned institution that originates, underwrites, funds, and services residential mortgages in all 50 states. Because we are a chartered bank, we hold programs in-house that brokers cannot offer. The most consequential for purchase borrowers is the in-house Consumer Loan.

For qualifying mortgage clients of our bank, the Consumer Loan provides up to *$50,000 in optional unsecured funds, drawn before, at, or after closing. Common uses include furnishings, moving costs, debt consolidation, post-closing improvements, reserves, and liquidity. The Consumer Loan is underwritten in-house when the borrower requests it. Not all consumers qualify. Subject to credit approval. Consumer loan proceeds may not be used for down payment.

We describe this combined structure as Purchase Plus Extra Cash. The mortgage finances the house. The Consumer Loan, if you qualify and want it, finances the rest of the move.

Why the In-House Pairing Changes the Cash-to-Close Math

At most lenders, every dollar you bring to closing has to come from savings, a gift, seller concessions, or an assistance program. The total can reach 5 to 10 percent of the purchase price before you have furnished the home or paid the movers.

The *$50,000 Consumer Loan does not change the cash you bring to the closing table for the down payment, because consumer loan proceeds are prohibited from being used for down payment on every program. What it changes is what happens after the home is yours. Your savings cover what they have to cover at closing. The Consumer Loan, if you qualify for it, covers what comes next. That is the practical meaning of buying the home without draining your savings.

Direct Lender Versus Broker, and Why That Matters

BuildBuyRefi.com is a direct lender. The same institution that approves your loan funds it and services it. There is no middleman moving your file between an origination shop and a wholesale lender you have never spoken to.

That structure matters when something on your file is unusual, timing is tight, a property type is uncommon, or your income looks different from a standard W-2. A broker has to ask permission from the wholesale lender at every decision point. A direct lender can make the call. The Consumer Loan pairing is possible only because we are a direct lender; brokers do not hold the consumer lending charter or the in-house underwriting capacity the program requires.

How Up to *$50,000 in Extra Cash at Closing Works With Your Purchase Loan

The Purchase Plus Extra Cash structure is the single most important thing that distinguishes a purchase loan at BuildBuyRefi.com from a purchase loan at a conventional retail lender. This section answers every question the program generates.

What the *$50,000 Consumer Loan Is, In Plain English

The Consumer Loan is an unsecured personal loan underwritten in-house by The Federal Savings Bank, available to qualifying mortgage customers of our bank. The maximum loan amount is *$50,000. Terms, rates, and conditions are confirmed during prequalification with your loan officer. Not all consumers will qualify. Subject to credit approval. See the Client Consumer Loan page for full program details.

The Consumer Loan is structurally separate from the mortgage. It is not a second mortgage, not a HELOC, not a piggyback loan, and not a closing-cost credit. It is a stand-alone unsecured installment loan that carries its own underwriting decision, its own note, and its own monthly payment.

Before, At, or After Closing: Why the Timing Flexibility Matters

The Consumer Loan can be drawn before the mortgage closes, at the mortgage closing, or after the mortgage closing. Most consumer credit products at most banks have a single funding window. Ours does not. The flexibility exists because the Consumer Loan is underwritten in-house and timed to what the borrower actually needs.

If you need to fund inspections, earnest money, or pre-closing repair credits and your savings are tied up, drawing before closing may make sense. If your goal is liquidity and reserves, drawing at closing may be right. If you want to wait until you have moved in and have a clear picture of post-closing expenses, drawing after closing is supported. The path is yours to choose, subject to qualification.

What You Can Use the Money For

Our In-House Consumer Loan is general-purpose unsecured credit. Common uses include:

• Furnishing a new home, from major appliances to bedroom sets

• Paying for movers, storage, or temporary housing during transition

• Paying off high-interest credit card or auto debt to consolidate at a fixed installment payment

• Funding post-closing improvements that did not make the inspection-and-repair budget

• Building a backyard, deck, patio, or fence

• Covering closing-adjacent expenses such as new homeowner insurance deposits, escrow surpluses, or property tax catch-ups

• Funding emergency reserves so the new home does not start with a depleted savings account

Borrowers do not need to declare a specific purpose to qualify. The funds are unsecured installment proceeds and behave the way any installment loan would.

What You Cannot Use the Money For, Including Down Payment on Any Program

The most important limit protects you and protects the program. Consumer Loan proceeds may not be used for down payment on any mortgage program at any time, under any circumstances.

This applies to every loan program at BuildBuyRefi.com without exception, including FHA, USDA, VA, Conventional, ITIN, Jumbo, Portfolio, Investor, and Non-QM. The down payment must come from an acceptable source defined by the program: borrower savings, retirement assets, gift funds with proper documentation, or other approved sources. Unsecured consumer credit is not an acceptable down-payment source under any agency or portfolio program.

If you are short on the down payment, the answer is not the Consumer Loan. The answer may be our Down Payment Assistance program, gift funds, seller concessions, or saving longer. Section 16 covers down payment sources in detail.

How the In-House Underwrite Works, and Why Mortgage Approval Does Not Guarantee Consumer Loan Approval

The Consumer Loan is underwritten in-house when the borrower is ready to move forward on it, commonly alongside the mortgage but also supported after the mortgage closes. The underwrite considers credit profile, income, existing debt obligations, and the additional payment burden the loan would carry. The Consumer Loan is a separate credit product with its own qualification standards, and the underwriting team that reviews it is part of the same institution that underwrites the mortgage.

Mortgage approval does not guarantee Consumer Loan approval. Both products are underwritten independently. A borrower may qualify for one and not the other. If the Consumer Loan is part of how you envision your post-closing financial picture, talk with your banker early about whether your file profile is likely to qualify for both products before you commit to a closing date that depends on Consumer Loan funding.

Available in All 50 States to Qualifying Mortgage Customers

The Consumer Loan program is available in all 50 states. It is offered to mortgage customers of The Federal Savings Bank who request it. There are no state-specific restrictions beyond the standing requirement of being a qualifying mortgage customer.

The program is not available as a stand-alone consumer loan to borrowers who are not closing a mortgage with us. The pairing structure is what makes the in-house pricing and timing flexibility possible.

Which Purchase Loan Program Fits You

The right purchase loan program depends on a small number of practical questions. Are you a Veteran or active-duty service member? Is the home in a USDA-eligible rural area? How much do you have saved? What does your credit profile look like? Does your income arrive as a W-2 or in a less linear pattern? Do you file taxes under a Social Security number or an Individual Taxpayer Identification Number?

We walk through each question below. The point is to give you a clear map so by the time you finish this section, you know which program section to read first.

Start With Your Eligibility, Not Your Down Payment

The most common mistake new borrowers make is asking "how much do I need to put down?" before asking "what programs am I eligible for?" Eligibility comes first because it determines which down payment minimums apply. A Veteran has a zero-down option a non-Veteran does not. A buyer in a USDA-eligible area has a zero-down option a buyer outside one does not. A buyer with an ITIN has a different path entirely.

Take eligibility first, then down payment, then the loan structure that best fits your goals.

If You Are a Veteran or Active-Duty Service Member, Start Here

If you have VA loan eligibility, the VA purchase loan is almost always your strongest starting point. Zero down payment on qualifying transactions. No monthly mortgage insurance. Competitive terms. Surviving spouse eligibility may extend the benefit. Section 7 covers the VA path in depth. The full VA program guide also lives at the VA Home Loan Programs for Veterans page.

If the Home Is in a USDA-Eligible Rural Area, Read This First

USDA Rural Development financing provides 100 percent financing with no down payment for eligible buyers purchasing in USDA-designated rural and suburban areas. The program has household income limits by county and household size. If you live in or are buying in an area that may be USDA-eligible, check eligibility before assuming you need FHA or Conventional. Section 6 walks through the USDA program. The full USDA program guide is at USDA Rural Development Home Loan Programs.

If You Have 3.5 Percent Saved and Average Credit, Look at FHA

FHA financing is the most common entry path for first-time buyers and for buyers whose credit profile is solid but not at the top of the range. The minimum down payment is 3.5 percent. Credit standards accommodate a broader range than Conventional. Section 5 covers FHA in depth. Borrowers new to homeownership may also benefit from the First Time Home Buyer guide.

If You Have Stronger Credit and 3 to 5 Percent Down, Conventional May Be Better

Conventional financing through Fannie Mae and Freddie Mac may carry a lower monthly cost than FHA for borrowers with stronger credit profiles, particularly when private mortgage insurance can be eliminated through equity or loan-to-value position. Fannie Mae HomeReady and Freddie Mac Home Possible may offer 3 percent down for eligible buyers. Section 4 covers Conventional in depth.

If You Do Not Have a Social Security Number, ITIN Is the Path

Borrowers who file taxes under an Individual Taxpayer Identification Number rather than a Social Security number may qualify for home purchase financing on qualifying programs. ITIN purchase loans are available on qualifying properties in all 50 states. Section 8 covers the program overview. The full ITIN program guide is at ITIN Home Loans.

If the Price Exceeds the Conforming Limit, You Are Looking at Jumbo

A loan amount above the FHFA county conforming limit becomes a jumbo loan. The 2026 baseline conforming limit for one-unit properties in most counties is $832,750, with high-cost county limits reaching up to $1,249,125. Above those thresholds, the file is jumbo. Section 9 covers the jumbo overview. The full Jumbo program guide is at Jumbo Home Loan Programs.

If Your File Does Not Fit a Box, Portfolio or Non-QM Is Where We Look

Some files do not fit neatly into agency guidelines. The income is real but documented differently. The property type is unusual. The credit profile has a story behind it. The reserves are strong but the DTI is high. When a file does not fit a standard agency box, Portfolio and Non-QM are the paths we look at. Section 10 covers Portfolio. Section 12 covers Non-QM. Both are in-house decision processes built specifically for files that need a human reading of context, not just a checklist.

Conventional Purchase Loans for Most U.S. Buyers in 2026

Conventional purchase loans are mortgages that conform to the underwriting standards of Fannie Mae or Freddie Mac and are not insured or guaranteed by a federal government agency. Conventional financing is the most widely used program category in the United States and is the default starting point for buyers with stable credit, documented income, and a planned down payment.

Down Payment Starts at 3 Percent for Eligible Buyers, 5 Percent Standard

Conventional purchase loans accept down payments as low as 3 percent for eligible first-time buyers through Fannie Mae HomeReady and Freddie Mac Home Possible programs. The standard minimum for borrowers who do not qualify for those programs is 5 percent. Higher down payments are common when borrowers want to avoid private mortgage insurance or strengthen their offer competitively. A 20 percent down payment removes the PMI requirement entirely.

The down payment may come from the borrower's savings, retirement assets, documented gift funds, or other approved sources defined by Fannie Mae's Selling Guide. Consumer loan proceeds may not be used for down payment.

Credit Score and DTI Expectations on Conventional Programs

Conventional programs typically expect a middle credit score of 620 or above. Pricing improves at higher score tiers, with notable improvements at 680, 720, and 740. Debt-to-income ratio guidance is set within the automated underwriting decision rather than as a single fixed cap. Borrowers with strong compensating factors may receive an approval at higher DTI levels than borrowers without those factors.

Specific credit and DTI thresholds are confirmed during prequalification with your loan officer because they depend on the AUS findings for your file.

Private Mortgage Insurance and When It Drops Off

When a Conventional purchase loan is originated above 80 percent loan-to-value, private mortgage insurance is required. PMI is paid monthly as part of the mortgage payment until the loan-to-value reaches the threshold at which PMI may be removed.

Unlike FHA mortgage insurance, Conventional PMI may be terminated when the loan-to-value drops to 78 percent based on the original purchase price under the Homeowners Protection Act, and borrowers may request earlier termination at 80 percent loan-to-value subject to lender approval and program rules. PMI may also be removed through a new appraisal demonstrating the loan-to-value has dropped below the threshold based on current market value.

Fannie Mae HomeReady and Freddie Mac Home Possible for Moderate-Income Buyers

HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are Conventional programs designed for moderate-income borrowers. They accept down payments as low as 3 percent, offer reduced mortgage insurance coverage requirements, and consider non-borrower household income in some qualifying scenarios.

Income eligibility for these programs is tied to area median income limits, which vary by census tract. A first-time buyer is not required by either program, although first-time-buyer status may unlock additional flexibility. Borrowers who qualify for HomeReady or Home Possible typically find the program produces a lower monthly cost than standard 5 percent down Conventional financing.

Conventional for Second Homes and Investment Properties

Conventional financing is the primary path for second-home and investment-property purchases because FHA, USDA, and VA programs are generally restricted to owner-occupied primary residences. Second-home loans require occupancy as a vacation home or secondary residence rather than as a rental, with distance-from-primary and other occupancy rules outlined in the Fannie Mae and Freddie Mac selling guides. Investment property loans require larger down payments, typically 15 to 25 percent, and may price differently than primary residence loans.

Section 18 covers occupancy in depth.

Pairing a Conventional Purchase With the *$50,000 Consumer Loan

A Conventional purchase may be paired with up to *$50,000 in optional unsecured Consumer Loan funds for qualified borrowers. Common uses include refilling liquidity after a 20-percent-down close or funding modest post-closing improvements. Consumer Loan proceeds may not be used for down payment. Section 2 covers the full program.

FHA Purchase Loans for Borrowers With 3.5 Percent Down

FHA purchase loans are mortgages insured by the Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development. FHA insurance protects the lender against losses if the borrower defaults. The insurance is paid for through borrower-paid mortgage insurance premiums. The trade-off is that FHA underwriting accommodates a broader range of credit profiles and lower down payments than Conventional financing.

The 3.5 Percent Minimum Down Payment and Where the Cash Can Come From

FHA requires a minimum borrower investment of 3.5 percent of the purchase price for borrowers with a qualifying credit score. The 3.5 percent may come from the borrower's savings, retirement assets, documented gift funds from acceptable donors, or assistance program proceeds defined in the FHA Single Family Housing Policy Handbook. Documented gift funds are common on FHA purchases. The gift letter must specify that no repayment is expected.

Consumer Loan proceeds may not be used for the FHA minimum borrower investment.

FHA Credit Score Flexibility and What Underwriting Looks At

FHA allows financing at 96.5 percent loan-to-value for borrowers with credit scores at or above the FHA minimum credit floor. Borrowers below that floor may be eligible at a lower loan-to-value subject to program guidelines and lender overlays. We confirm the specific credit threshold during prequalification because it depends on current program and overlay positioning.

FHA underwriting looks at the full credit picture, not only the score. Payment history, collection accounts, judgments, prior foreclosures or bankruptcies, and recent credit activity all factor into the decision. Compensating factors such as significant reserves, low payment shock, or a strong rental payment history may support a file that would otherwise be a closer call.

Upfront and Annual Mortgage Insurance Premiums Explained

FHA loans carry two mortgage insurance premiums. The upfront mortgage insurance premium (UFMIP) is paid at closing and may be financed into the loan amount. The annual mortgage insurance premium is paid monthly as part of the mortgage payment.

FHA mortgage insurance generally remains on the loan for the life of the loan when originated at typical 96.5 percent loan-to-value. The most common path to remove FHA mortgage insurance is to refinance into a Conventional loan once the borrower has reached the loan-to-value and credit profile that supports the conventional refinance.

FHA Loan Limits by County in 2026

FHA loan limits vary by county and are updated annually. The 2026 FHA loan limits reflect the FHFA conforming loan limit increases. The FHA floor and ceiling are set as percentages of the conforming limit, with high-cost counties carrying higher FHA limits than low-cost counties. Verify the FHA loan limit for your specific county at the county loan limits page.

A purchase price that exceeds the FHA loan limit in your county does not necessarily disqualify the FHA path. If the loan amount needed (after down payment) is at or below the FHA limit, FHA financing remains available. If the loan amount exceeds the limit, the file moves to Conventional, VA jumbo for eligible Veterans, or Jumbo Portfolio.

FHA for Two-to-Four Unit Owner-Occupied Properties

FHA financing is available for two-to-four unit properties when the borrower will occupy one of the units as a primary residence. This is a path commonly used by first-time buyers and house hackers who want to own the building they live in while renting out the additional units. The down payment minimum is 3.5 percent, the same as for single-family FHA financing.

FHA self-sufficiency rules may apply to three-and-four unit properties to confirm the property income can support the mortgage payment. Your loan officer can walk you through whether the property and rental income picture supports the FHA path.

Pairing an FHA Purchase With the *$50,000 Consumer Loan

An FHA purchase may be paired with up to *$50,000 in optional unsecured Consumer Loan funds for qualified borrowers. This pairing is common for first-time buyers who used the bulk of their savings on the down payment, upfront mortgage insurance premium, and closing costs, and want a reserve cushion after closing. Consumer Loan proceeds may not be used for the FHA minimum borrower investment or any portion of the down payment. Section 2 covers the program.

USDA Purchase Loans for 0 Percent Down in Eligible Areas

USDA purchase loans are mortgages guaranteed by the U.S. Department of Agriculture under the Section 502 Guaranteed Rural Housing program. The program provides 100 percent financing for eligible borrowers purchasing eligible properties in USDA-designated rural and suburban areas. USDA loans are not limited by household maximum loan amount in the way that FHA loans are limited by county loan caps, but they are limited by household income and by property location.

How USDA Property Eligibility and Geographic Boundaries Work

USDA eligibility is tied to the property location, not the borrower's current address. The USDA publishes geographic eligibility maps at the USDA Rural Development website. Many suburban areas qualify, particularly outside major metropolitan cores. Borrowers who assume USDA only applies to remote rural locations are often surprised to find that their target neighborhood is eligible.

The USDA eligibility map should be checked before assuming a property is or is not in an eligible area. Eligibility maps update periodically.

USDA Income Limits by County and Household Size

USDA imposes household income limits that vary by county and by household size. The income calculation includes all adult household members, even those not on the loan, with specific exclusions and adjustments outlined in USDA guidelines. The income limit is based on adjusted household income, not gross income, and certain deductions apply.

Household income limits are published by USDA Rural Development and are updated periodically. Your loan officer can confirm the specific limit for your county and household size during prequalification.

The USDA Guarantee Fee and Annual Fee Structure

USDA loans carry two fees that function similarly to mortgage insurance. The upfront guarantee fee is paid at closing and may be financed into the loan amount. The annual fee is paid monthly as part of the mortgage payment.

The USDA annual fee is generally lower than the comparable FHA annual mortgage insurance premium on equivalent loan-to-value transactions. That cost difference is one reason USDA financing is often the lowest-monthly-cost path for eligible buyers in eligible areas.

Why USDA Mortgage Insurance Is Often Lower Than FHA

USDA's annual fee structure is set by the agency to reflect the program's risk profile and to support the rural housing mission. For buyers who qualify for both USDA and FHA, the USDA path often produces a lower monthly payment because of the lower annual fee, even though both programs require 100 percent and 96.5 percent loan-to-value respectively.

If you qualify for USDA, USDA is usually the conversation to have first. FHA remains the backup path if USDA eligibility does not work out.

Why USDA Construction Is Currently Suspended and What to Use Instead

USDA's construction-to-permanent program is currently not being funded. Buyers who want to build in USDA-eligible areas have several alternative paths, including USDA Repair Escrow on an existing home, FHA construction, VA construction for eligible Veterans, or our in-house One-Time Close, Two-Time Close, or Hybrid construction programs with is a great alternative to the USDA Construction program. Construction financing in rural areas remains available; it just routes through a different program.

Pairing a USDA Purchase With the *$50,000 Consumer Loan

A USDA purchase may be paired with up to *$50,000 in optional unsecured Consumer Loan funds for qualified borrowers. Because USDA provides 100 percent financing, the borrower's cash at closing is typically limited to closing costs and prepaid items. Consumer Loan funds drawn before, at, or after closing may support move-in costs, post-closing improvements, or reserves. Consumer Loan proceeds may not be used for any down payment portion. Section 2 covers the program.

VA Purchase Loans for Eligible Veterans and Surviving Spouses

VA purchase loans are mortgages guaranteed by the U.S. Department of Veterans Affairs for eligible Veterans, active-duty service members, certain Reservists and National Guard members, and qualifying surviving spouses. The VA program is widely considered the strongest residential lending program available because of the combination of 0 percent down on qualifying transactions, no monthly mortgage insurance, competitive interest rate structure, and assumability.

Who Qualifies for VA Loan Benefits in 2026

VA loan eligibility depends on length of service, character of discharge, and service period. Veterans, active-duty service members, certain Reservists and National Guard members, and qualifying surviving spouses may be eligible. The Certificate of Eligibility issued by the VA confirms the borrower's entitlement and is the foundational document for any VA loan application.

The VA's eligibility framework is published at the U.S. Department of Veterans Affairs at va.gov/housing-assistance/home-loans. Our team helps Veterans obtain the COE as part of the prequalification process.

The VA Funding Fee, Exemptions, and Where It Goes

The VA funding fee is a one-time fee paid at closing that supports the VA loan guaranty program. The fee amount depends on the type of transaction, the down payment (if any), and whether the borrower has used VA financing previously. The funding fee may be financed into the loan amount.

Veterans with a service-connected disability rating may be exempt from the funding fee. Surviving spouses receiving Dependency and Indemnity Compensation are also exempt. The exemption status is confirmed by the VA during loan processing.

Why VA Loans Carry No Monthly Mortgage Insurance

VA loans do not require private mortgage insurance because the VA guaranty serves the same protective function for the lender. The absence of monthly mortgage insurance is one of the largest cost advantages of the VA program. A Veteran financing a home with 0 percent down on a VA loan typically pays a meaningfully lower monthly payment than a non-Veteran financing the same property with FHA at 3.5 percent down or Conventional at 5 percent down.

VA Entitlement, Second-Tier Entitlement, and Restoration

VA entitlement is the amount the VA guarantees on the borrower's behalf. A Veteran has a primary entitlement and may also have access to second-tier entitlement, which allows the Veteran to hold more than one VA loan at a time under specific circumstances. Entitlement restoration occurs when a previous VA loan is paid off and the property is sold, or in certain refinance scenarios.

Veterans who have used the VA benefit before should not assume they have used it up. A scenario review conversation can clarify exactly how much entitlement remains and how it may be applied to a new purchase.

VA Loan Limits for Borrowers Without Full Entitlement

Fully entitled Veterans have no VA loan limit. They may borrow whatever the lender will approve based on income, credit, and property. Borrowers who do not have full entitlement, such as those with an active prior VA loan, may be subject to county loan limit calculations on the new loan.

Most Veterans purchasing a single primary residence with no active prior VA loan fall into the fully entitled category and have no VA loan limit on the new purchase. Confirm your entitlement status with your loan officer.

Surviving Spouse Eligibility and the COE Process

Qualifying surviving spouses of Veterans may have access to VA loan benefits in their own right. Eligibility depends on the specific circumstances of the surviving spouse and is confirmed by the VA. Surviving spouses applying for a VA loan obtain a Certificate of Eligibility through the VA. Our team can help walk through the COE process.

Pairing a VA Purchase With the *$50,000 Consumer Loan

A VA purchase may be paired with up to *$50,000 in optional unsecured Consumer Loan funds for qualified Veterans. Because VA financing offers 0 percent down, the borrower's cash at closing is often limited to the funding fee (if not financed and not exempt) plus closing costs and prepaids. Consumer Loan funds may support furnishing the home, moving costs, post-closing improvements, or building reserves. Consumer Loan proceeds may not be used for any down payment or earnest money portion. Section 2 covers the program.

The full VA program guide lives at VA Home Loan Programs for Veterans. For VA jumbo purchases above the conforming limit, see Section 9 of this guide and the dedicated jumbo page.

ITIN Purchase Loans for Borrowers Without a Social Security Number

ITIN purchase loans provide a home purchase financing path for borrowers who file U.S. taxes under an Individual Taxpayer Identification Number rather than a Social Security number. The program is available on qualifying properties in all 50 states.

Who ITIN Purchase Loans Are Designed For

The ITIN purchase program is designed for borrowers who have established U.S. tax history under an ITIN, who have documented income that can be verified through tax returns and supporting documentation, and who are purchasing a property that meets the program's eligibility requirements. ITIN borrowers may purchase a primary residence, second home, or investment property under the program.

What Documentation Replaces a U.S. Credit File

Borrowers without a U.S. credit file may demonstrate creditworthiness through alternative credit documentation, including documented rent payment history, utility payment history, insurance payment history, and similar recurring obligations. The program is built to evaluate creditworthiness without requiring a traditional U.S. credit file, although borrowers who do have a credit file may use it.

Down Payment, Property Type, and Income Documentation Overview

Down payment requirements, property eligibility, and income documentation expectations for ITIN purchase loans are confirmed during prequalification. The program has its own underwriting overlays distinct from standard agency programs. The full ITIN purchase loan guide covers each element in depth.

Where to Get the Full ITIN Purchase Loan Guide

The dedicated ITIN Home Loans page covers the full program in depth: eligibility, documentation, down payment, property types, state availability, and the borrower experience. If ITIN is the path for you, that page is your next stop.

Jumbo Purchase Loans Up To $10 Million Through In-House Review

Jumbo purchase loans are mortgages with a loan amount that exceeds the FHFA county conforming limit. Jumbo financing is its own underwriting category with its own documentation standards, reserve expectations, and pricing. For luxury purchases, large-acreage primary residences, and high-cost-area homes, jumbo financing is often the only path.

When a Loan Becomes Jumbo: The 2026 Conforming Limit Trigger

For 2026, the FHFA baseline conforming loan limit for a one-unit property is $832,750 in most U.S. counties. High-cost counties carry a conforming limit of up to $1,249,125. Special statutory provisions apply in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the one-unit baseline is $1,249,125 and the ceiling is $1,873,675. A loan amount above your county's conforming limit becomes a jumbo loan. Verify the limit for your specific county at the county loan limits page.

Jumbo Down Payment, Credit, and Reserve Expectations Overview

Jumbo programs generally expect higher down payments, stronger credit profiles, and meaningful cash reserves after closing. The specifics vary by program tier within the jumbo category. The conventional portfolio jumbo path typically expects 10 percent down or more, depending on loan amount and property type. VA jumbo for eligible Veterans operates under VA entitlement rules and may not require a down payment for fully entitled Veterans. In-house portfolio jumbo accommodates files that fall outside conventional and VA structures, with loan amounts up to $10 million available through in-house committee review with appropriate compensating factors.

VA Jumbo for Eligible Veterans With No Published Loan Cap

VA jumbo financing for fully entitled Veterans does not carry a published VA-side loan cap. Loan amounts up to $4.5 million on the standard structure are common, with larger amounts up to $10 million available under in-house committee review with compensating factors. VA jumbo is one of the most underused Veteran benefits because many lenders are not equipped to handle the file. Our institution is.

Where to Get the Full Jumbo Purchase Loan Guide

The dedicated Jumbo Home Loan Programs guide covers every jumbo product in depth: purchase, cash-out refinance, rate-and-term refinance, jumbo construction in multiple structures, and jumbo renovation. If jumbo is the path for you, that page is your next stop.

Portfolio Purchase Loans for Files That Need a Human Reading

Portfolio purchase loans are mortgages that The Federal Savings Bank holds in our own portfolio rather than sold into the secondary market. Portfolio is not a product. Portfolio is a structure. It is the path we use when a file requires an in-house committee decision rather than an automated underwriting decision built around agency-standard guidelines.

What "Portfolio" Means at a Federally Chartered Direct Lender

Most residential mortgages originated in the United States are sold into the secondary market shortly after closing. Fannie Mae, Freddie Mac, and Ginnie Mae are the largest buyers. Loans sold into the secondary market must conform to the buying agency's underwriting guidelines. Portfolio loans are different. They are originated, funded, and retained by the bank. Because the bank holds the asset, the bank can decide what the underwriting standards are. That flexibility is the entire point of portfolio.

When Conventional Agency Guidelines Cannot Hold the File

A file that does not fit Fannie Mae or Freddie Mac guidelines does not automatically mean the borrower cannot be financed. It means the file may need a portfolio path. Common reasons a file may need portfolio review include unusual income structures, complex self-employment, multiple businesses, property types that are not standard, large acreage, non-warrantable condo projects, recent significant life events in the credit history that need narrative context, or asset structures that do not document cleanly under agency rules.

Property Types and Borrower Profiles Where Portfolio Is the Path

Portfolio purchase loans frequently serve borrowers with high net worth and complex documentation, ITIN and foreign national borrowers who may not fit agency overlays on certain property types, investors with multiple financed properties exceeding agency caps, and borrowers buying property types that agency programs do not finance. Section 12 covers Non-QM, which is closely related to but distinct from portfolio. Section 11 covers Investor, which is also frequently a portfolio path.

Physician Loans for Medical Professionals on Their First or Next Home

Physician Loans are a portfolio purchase path built for medical professionals who carry the credit, income trajectory, and student-debt profile that agency underwriting does not always read accurately. Doctors, dentists, residents, fellows, and other qualifying medical professionals frequently have signed employment contracts that have not yet started, deferred student loan payments that an agency engine treats as fully amortizing, and limited cash reserves relative to their long-term earning power. A standard Conventional or FHA underwrite often penalizes that profile despite the borrower being plainly creditworthy.

Our Physician Loan program addresses that gap. Low or zero down payment may be available on qualifying transactions. Private mortgage insurance is generally not required. Student loan debt is treated under program-specific calculation methods rather than the standard amortizing payment formula. Signed employment contracts may be used as a basis for qualifying income before the start date, subject to program rules. The program serves both first-time medical home buyers and established physicians moving into their next primary residence.

The full program guide, including eligible specialties, qualifying documentation, and the underwriting framework for residents, fellows, and attending physicians, lives at the Physician Mortgage Loans page. If you are a medical professional looking at a purchase in 2026, that page is your next stop.

How an In-House Committee Decision Differs From an AUS Approval

An Automated Underwriting System decision is produced by Fannie Mae's Desktop Underwriter or Freddie Mac's Loan Product Advisor based on data inputs against agency rules. The decision is rendered in seconds. It is mechanical. An in-house committee decision is rendered by experienced underwriters and senior officers reviewing the full context of a file. It takes longer. It accounts for compensating factors that an AUS engine cannot consider. It produces decisions on files that an AUS would simply decline because the file does not fit a box, even if the borrower is plainly creditworthy.

Portfolio purchase loan amounts at our institution reach up to $10 million through committee review with appropriate compensating factors, which positions the path for high-net-worth purchases, large-acreage primary residences, complex investor scenarios, and other files that need a credit decision built around the specifics of the borrower rather than a checklist.

If you have been declined by an AUS-driven lender on a file that you believe deserves a more thorough review, a portfolio path may be the right next conversation.

Investor Purchase Loans: Conventional, DSCR, and Portfolio Paths

Investor purchase loans finance the acquisition of residential property that the borrower will not occupy as a primary residence. The investor may rent the property to long-term tenants, operate it as a short-term rental, hold it for appreciation, or operate it as part of a larger portfolio of rental properties. BuildBuyRefi.com offers several investor purchase paths, each suited to different investor profiles and property types.

Conventional Investor Purchase: The Most Common Path

The most common investor purchase path is a Conventional investment-property loan through Fannie Mae or Freddie Mac. The borrower qualifies based on personal income, credit, and assets, with rental income from the subject property potentially factored into qualification at the underwriter's standard treatment. Down payments for investment-property purchases under Conventional financing typically begin at 15 to 25 percent depending on property type, number of units, and borrower profile.

Conventional investor loans carry separate pricing from primary-residence loans and typically require higher credit scores and reserves. The Conventional path is appropriate for investors with strong personal financial profiles who are buying single-family rentals or small multi-unit residential properties.

DSCR Loans for Rental Cash-Flow Qualification

DSCR loans, short for Debt Service Coverage Ratio, qualify the borrower based on the rental cash flow the property is expected to produce rather than the borrower's personal income. DSCR is a Non-QM product category and is widely used by professional investors who hold rental property in entities, who have personal income that does not document cleanly for Conventional qualification, or who simply prefer to qualify based on property economics rather than personal economics.

A DSCR loan looks at the projected rental income against the proposed mortgage payment, including taxes and insurance, and computes a ratio. The qualifying threshold and the program structure are confirmed during prequalification. DSCR is one of our most common Non-QM purchase paths for serious investors.

Portfolio Investor Loans for Files That Need Flexibility

Some investor files do not fit Conventional or DSCR cleanly. Examples include investors with more financed properties than Conventional caps allow, investors buying property types that agency programs do not finance, and investors with credit or income narratives that need an underwriter's reading of context. The portfolio path covered in Section 10 is the home for those files. Portfolio investor purchase loans are originated and held in-house by The Federal Savings Bank, with committee review of files that need a human decision.

Adding the *$50,000 Consumer Loan to an Investor Purchase

Investor purchase borrowers who are also qualifying mortgage customers of our bank may pair the mortgage with up to *$50,000 in optional unsecured Consumer Loan funds. Common post-closing uses include funding initial property repairs, paying for property management setup, building cash reserves for the rental, or consolidating debt to improve the borrower's overall qualifying picture for the next acquisition.

Consumer Loan proceeds may not be used for any portion of the investment-property down payment. Not all consumers qualify. Subject to credit approval.

Property Types and Number of Units We Finance for Investors

Investor purchase loans at BuildBuyRefi.com finance single-family rental properties, condos in approved projects, two-to-four unit multi-family residential properties, and certain specialty property types including manufactured homes on permanent foundations, modular homes, and barndominiums when the file structure supports the use case. Properties with five or more residential units fall outside residential lending and are handled separately.

Section 15 covers property types in depth.

Non-QM Purchase Loans for Bank Statement and Asset-Based Qualifying

Non-QM stands for non-qualified mortgage. Non-QM is not a single product. It is a regulatory category for residential mortgages that do not meet the specific qualified-mortgage criteria defined by the Consumer Financial Protection Bureau. Within the Non-QM category, several distinct products serve different borrower profiles.

What Non-QM Means and Why It Exists

The qualified-mortgage definition was established to provide lenders with a safe harbor for loans that meet specific consumer-protection criteria, including ability-to-repay verification through standard documentation methods. Non-QM loans do not fall within that safe harbor but remain legitimate residential mortgages, originated by regulated institutions, with their own underwriting standards. Non-QM exists because real borrowers have real income and real credit that does not always document cleanly under standard QM rules.

Bank Statement Programs for Self-Employed Borrowers

Bank statement programs qualify the borrower using business or personal bank statements rather than tax returns. The underwriter analyzes 12 to 24 months of statements to derive a qualifying income figure. Bank statement programs are widely used by self-employed borrowers whose tax returns understate their actual income because of legitimate business deductions, depreciation, and other accounting structures that reduce reportable income.

A self-employed borrower whose tax-return-based qualifying income produces a lower mortgage approval than a bank-statement analysis may find that the bank statement path produces a more accurate picture of qualifying capacity. The full self-employed and 1099 contractor program is covered at the Self-Employed and 1099 Contractor Home Loans guide.

Asset Utilization, Profit and Loss, and Other Documentation Paths

Non-QM also includes asset utilization programs, which qualify the borrower based on a calculated income figure derived from liquid assets. These programs are appropriate for borrowers with significant investment or retirement assets who may not have current employment income but who can demonstrate qualifying capacity through asset coverage.

Profit-and-loss programs qualify the borrower based on a CPA-prepared or independently verified profit-and-loss statement for self-employed borrowers in specific scenarios. Each program has its own documentation and overlay requirements.

Non-QM Down Payment, Credit, and Reserve Expectations Overview

Non-QM programs typically expect higher down payments than agency programs, with minimums frequently starting at 10 to 20 percent depending on the program and the borrower profile. Credit standards vary by program. Reserves are commonly required at meaningful levels because Non-QM lenders price for risk. The specific structure for your scenario is confirmed during prequalification.

Self-Employed and 1099 Contractor Purchase Loans

Self-employed borrowers, 1099 contractors, business owners, gig workers, and anyone whose income does not arrive on a standard W-2 schedule face a different qualification path than W-2 employees. The path is fully available and widely used at BuildBuyRefi.com, but the documentation, the income calculation, and the program selection all benefit from a knowledgeable conversation early in the process.

How Underwriting Reads Self-Employed Income

Self-employed income is documented through tax returns, K-1s, profit-and-loss statements, and business bank statements. The underwriter analyzes two years of tax returns, applies allowable add-backs for non-cash deductions such as depreciation and depletion, and derives a qualifying income figure. The way your accountant has structured your tax returns affects the qualifying income calculation. A borrower whose tax returns show low net income because of aggressive deductions may have a lower qualifying income than a borrower with the same gross revenue and more conservative tax structuring.

Why a Bank Statement Program May Beat a Standard Tax-Return Path

For borrowers whose tax returns understate their actual cash flow, a Non-QM bank statement program may produce a higher qualifying income figure and a corresponding higher loan amount approval. The trade-off is that Non-QM programs typically carry higher rates and higher down payment requirements than agency programs. Whether a tax-return path or a bank-statement path produces a better outcome depends on the specifics of your file.

Where to Get the Full Self-Employed and 1099 Purchase Guide

The dedicated Self-Employed and 1099 Contractor Home Loans page covers every element of the self-employed purchase path in depth: documentation, income calculation, add-back methodology, multiple-business scenarios, recent income growth, recent income decline, and the bank-statement path versus the tax-return path. If self-employment is a meaningful part of your qualifying picture, that page is your next stop.

How Up to 30 Percent in Real Estate Commission Savings Lowers Your Cash to Close

The Real Estate Commission Savings program offered through BuildBuyRefi.com is a structurally distinct way to lower your total cash to close, available in all 50 states through participating real estate brokerage firms. The program is not a discount on the mortgage. It is a negotiated reduction in the commission paid to the represented side of the transaction, structured through partnered brokerage firms, with the savings flowing to the consumer.

How the Commission Savings Program Works in All 50 States

When you work with a participating real estate brokerage firm on the purchase or sale of a home, you may be eligible for a rebate of up to 30 percent of the commission fee that brokerage would receive on the side of the transaction representing you. The savings are real, the structure is compliant, and the program is offered free to consumers. No remuneration is paid to The Federal Savings Bank or to any of our bankers for the commission savings program.

The program operates by negotiated agreement with participating brokerage firms. The consumer must contact us before signing a representation agreement with the brokerage in order to be enrolled in the program. After enrollment, the brokerage and the consumer execute the standard representation agreement, and the agreed savings are applied at closing or upfront, depending on the state.

Closing Credit, Upfront Reduction, or Rate Buydown: How Your State Decides

How the commission savings are applied depends on your state's real estate regulations. In most states, the savings appear at closing as a credit applied toward the consumer's allowable closing costs. In a smaller list of states identified below, the savings must be reflected directly in the representation agreement as a reduced commission upfront rather than as a closing credit.

Where the savings appear as a closing credit, the consumer may elect to use those savings to lower out-of-pocket cash to close, to pay discount points for a permanent rate reduction, or to fund a temporary interest rate buydown. The strategic choice depends on the consumer's goals and the time horizon of the loan. Your loan officer can model the trade-offs for your specific scenario.

Stacking Commission Savings With the *$50,000 Consumer Loan

The commission savings program and the *$50,000 Consumer Loan are entirely separate programs and may be used together by qualifying borrowers. The commission savings lower your cash to close at the closing table. The Consumer Loan, if approved, provides up to *$50,000 in optional unsecured funds available before, at, or after closing for purposes other than down payment.

The combined effect for a borrower who qualifies for both can be significant. A buyer who reduces cash to close through commission savings and then taps the Consumer Loan after closing for furnishing, moving, and reserves enters homeownership with less drawn from savings and a clearer post-closing financial picture.

The Ten States That Apply Savings as an Upfront Reduction

The following ten states condition or do not permit the granting of a rebate by real estate brokerage firms in the form of a closing credit, and in these states the savings appear as an upfront reduction in the commission rather than as a closing credit: Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee. The list is subject to change. In all other states, the standard closing credit application generally applies.

No Remuneration to the Bank, No Cost to the Consumer

The commission savings program is offered free to consumers. No remuneration is paid to The Federal Savings Bank or to any of our bankers. The program is one of several initiatives our institution offers to help consumers reduce the total cost of a home purchase or sale. Full program details are at the Real Estate Commission Savings page.

Property Types We Finance for Purchase: From Stick-Built to Barndominiums and 3D-Printed Homes

BuildBuyRefi.com is one of the broader direct lenders in the United States in terms of property-type eligibility. The list below is not theoretical. Each of these property types has been financed through our institution on qualifying programs.

Single-Family Stick-Built, Brick, and Frame Homes

Conventional, FHA, USDA, and VA programs all finance standard single-family stick-built, brick, and frame homes. This is the most common property type and the easiest to finance. Modular homes constructed off-site and assembled on a permanent foundation are treated under the same category as single-family homes and have the same financing flexibility.

Modular Homes and Why They Are Not the Same as Manufactured

Modular homes are constructed in a factory in sections, transported to the site, and assembled on a permanent foundation. They are built to local and state building codes and are titled and financed as real property in the same way as a site-built home. Modular is not the same as manufactured. The distinction matters at the appraisal and the title office.

Manufactured Homes on Permanent Foundation, 600 Square Feet and Above

Manufactured homes built after June 15, 1976, on a permanent foundation, titled as real property rather than as a vehicle, and measuring 600 square feet or larger are eligible for financing under qualifying FHA, USDA, VA, and Conventional programs. Single-wide, double-wide, and triple-wide manufactured homes are all eligible. Homes on rented or leased land, known as chattel scenarios, are not financed by our bank. The Manufactured Home Loan Programs guide covers the program in depth.

Barndominiums and Metal Homes

Barndominiums and metal-exterior homes are financed under qualifying programs when the property is constructed on a permanent foundation, meets local building codes, and appraises with comparable properties. Barndominiums are one of the more common specialty property types we finance, particularly for buyers in rural and semi-rural markets.

Log Cabin and Timber Frame Homes

Log cabin homes and timber frame homes are eligible for financing on qualifying programs. Both property types require comparable sales support at appraisal and adherence to standard property condition requirements for the program in question. Log cabins are common in the Southeast, Mountain West, and Northeast, and timber frame homes are increasingly common in custom-build markets nationwide.

SIP Panel and Insulated Concrete Form (ICF) Homes

Structural Insulated Panel (SIP) homes and Insulated Concrete Form (ICF) homes are eligible for financing on qualifying programs. Both construction methods produce highly energy-efficient homes that typically appraise well in markets where the construction method is established. Our underwriters have experience with both property types.

3D-Printed Homes

3D-printed residential homes are an emerging property type. Our institution finances 3D-printed homes on qualifying programs when the property meets local building codes, sits on a permanent foundation, and supports comparable-sales appraisal. As the property type becomes more established, the financing path is becoming more straightforward.

Condominiums in HUD, FHA, VA, Fannie, or Freddie Approved Projects

Condominium purchases require that the project be approved under the relevant program rules. FHA-approved projects support FHA condo financing. VA-approved projects support VA condo financing. Fannie Mae warrantable condo projects support Conventional condo financing. Non-warrantable condo projects may still be financeable through portfolio paths covered in Section 10.

Townhouses and Planned Unit Developments

Townhouses and homes within Planned Unit Developments (PUDs) are financed under qualifying agency and portfolio programs. PUD documentation requirements vary by program but are generally less restrictive than full condo project approval.

Two-to-Four Unit Properties for Primary Residence or Investment

Two-to-four unit residential properties are eligible for owner-occupied financing under FHA, VA, and Conventional when the borrower will occupy one of the units. They are eligible for investment-property financing when the borrower will not occupy. House hacking, the practice of buying a multi-unit property to live in one unit and rent the others, is a well-supported strategy under FHA's 3.5 percent owner-occupied multi-unit path.

Large Acreage and Unusual Lot Configurations

Properties with large acreage are financeable under qualifying programs, with VA and USDA generally accommodating more acreage than FHA and Conventional. Specific acreage limits and appraisal treatment vary by program and are confirmed during prequalification. If your target property is on more land than a standard suburban lot, a conversation with your loan officer early in the process helps confirm the program path.

Accessory Dwelling Units and Multi-Generational Configurations

Properties with Accessory Dwelling Units (ADUs) are increasingly common and are financeable on qualifying programs. ADU rental income may be considered in qualifying calculations on certain programs. The ADU Financing Guide covers ADU specifics in depth.

What We Do Not Finance: Chattel, Commercial, and a Short List of Exceptions

We do not finance manufactured homes on rented or leased land (chattel). We do not finance commercial property as a residential mortgage. We do not finance new dealer-manufactured homes in New York, although modular and site-built construction in New York is supported. We do not finance mixed-use property as residential. Five-or-more-unit residential properties fall outside residential lending. Properties under 600 square feet of finished living area generally fall outside agency program requirements.

How Much Down Payment You Actually Need by Program in 2026

Down payment is the single most common question new borrowers ask. The answer depends on the program. Here is the working framework.

The Minimum Down Payment Floor by Program at a Glance

• VA: 0 percent for eligible Veterans on qualifying transactions

• USDA: 0 percent for eligible borrowers on eligible properties

• FHA: 3.5 percent minimum borrower investment

• Conventional HomeReady or Home Possible: 3 percent for eligible buyers

• Conventional Standard: 5 percent

• Conventional Second Home: typically 10 percent

• Conventional Investment Property: typically 15 to 25 percent

• Jumbo: typically 10 percent or more, varies by program

• DSCR Investor: typically 20 to 25 percent

• ITIN and Non-QM: confirmed during prequalification, typically higher than agency programs

These are program floors. The actual down payment you bring to closing may be higher based on what your lender's automated underwriting decision requires, what your loan-to-value strategy is, or whether you want to put more down to strengthen the offer or to avoid mortgage insurance.

Where Your Down Payment Money Can Come From

The down payment must come from an acceptable source as defined by the program. Acceptable sources generally include borrower savings, retirement account distributions or withdrawals, documented gift funds, proceeds from the sale of another property or asset, and certain assistance program funds. Each program defines its own acceptable sources. Your loan officer confirms what applies to your file.

Gift Funds, Seller Concessions, and Interested-Party Contributions

Gift funds are common on FHA, USDA, VA, and Conventional purchases. The donor must be acceptable to the program, the funds must be documented with a gift letter, the transfer must be traced through bank statements, and no repayment may be expected. Specific gift fund rules vary by program.

Seller concessions are negotiated terms in the purchase contract by which the seller pays a portion of the buyer's closing costs. FHA allows seller concessions up to 6 percent of the purchase price for allowable closing costs. Conventional concession limits depend on loan-to-value and occupancy. USDA and VA each have their own concession rules. Seller concessions do not reduce the borrower's required down payment but do reduce the borrower's required cash to close.

Down Payment Assistance: When 0 to 3 Percent Becomes 0

Our in-house Down Payment Assistance program provides subordinate-lien financing that covers the required down payment for qualifying borrowers, allowing buyers who could not otherwise cover the down payment to enter homeownership. The structure layers a subordinate lien behind the primary mortgage and has its own qualification requirements. Full program details at Down Payment Assistance.

Why the *$50,000 Consumer Loan Cannot Be Used for Down Payment

Worth restating in this section because the question comes up often: Consumer Loan proceeds may not be used for any portion of the down payment on any program. The Consumer Loan exists to support post-closing financial picture, not to fund the cash you bring to the closing table for the down payment. If down payment is your obstacle, the answer is Down Payment Assistance, gift funds, seller concessions, or saving longer, not the Consumer Loan.

Credit Score, Income, and DTI: What Underwriting Actually Reviews

Underwriting is the process by which the lender determines whether the borrower has the credit profile, the income, and the financial capacity to repay the loan. Three elements matter most: credit score, income, and debt-to-income ratio. The way each is evaluated varies by program.

The Middle of the Three Credit Scores and Why It Matters

Mortgage lending uses the middle of the three FICO scores reported by Equifax, Experian, and TransUnion. The middle score for a single borrower is the one used for qualifying. When two borrowers are on the loan, the lower of the two middle scores is typically the qualifying score. The number that matters is not always the highest score you see when you check your credit; it is the middle score from the three bureaus that the mortgage industry uses.

How Low Can Your Score Go and Still Have a Path

The lowest acceptable middle credit score depends on the program, the loan-to-value, the property type, and current overlays. FHA generally accommodates lower scores than Conventional. Portfolio paths covered in Section 10 may accommodate files that fall outside standard agency credit floors when compensating factors exist. We have closed loans for borrowers in the 550 range under specific scenarios, although these are not standard cases and they require strong compensating factors. The right path for a lower-credit-score file is identified during prequalification.

The Six Income Types Underwriting Will Accept

Underwriting accepts six broad categories of income:

1. W-2 full-time and part-time employment income, documented through W-2s, paystubs, and verification of employment

2. Self-employed or 1099 contractor income, documented through tax returns, K-1s, and profit-and-loss statements

3. Active military income, documented through Leave and Earnings Statements

4. Retirement, pension, and 401(k) regular disbursement income, documented through award letters and distribution records

5. Social Security and disability income, documented through award letters

6. 12 to 24 months of personal or business bank statements under Non-QM bank statement programs

Why Stated Income Is Not a Path We Offer

Stated income loans, in which the borrower's income is not documented or verified, are not offered by our bank on any program. Every loan we close is supported by documented and verified income. The Non-QM bank statement path is a documented-income path; it simply uses bank statements rather than tax returns to derive the qualifying figure.

How Debt-to-Income Ratio Is Calculated

Debt-to-income ratio (DTI) is the sum of the borrower's monthly debt obligations divided by the borrower's gross monthly qualifying income, expressed as a percentage. The monthly debt obligations include the proposed mortgage payment with taxes and insurance, plus minimum payments on all credit obligations that appear on the credit report.

DTI ceilings vary by program and are typically determined by the AUS decision rather than a single fixed cap. Compensating factors may support a higher DTI on a file with strong reserves, low loan-to-value, or other strength indicators.

Why Changing Jobs Mid-Loan Is the Fastest Way to Lose a Closing

A change in employment between loan application and loan closing can require the underwriter to re-verify income, re-document the new position, and re-evaluate the qualifying picture. In many cases this is manageable. In some cases it produces a delay, a re-underwrite, or a decline. The safest path is to avoid voluntary employment changes during the loan process and to disclose any involuntary changes immediately to your loan officer.

Purchase Loans by Occupancy: Primary, Second Home, or Investment

The occupancy type for the property you are purchasing determines which programs are available, what down payment minimums apply, and what pricing structure your loan carries. Occupancy is one of the foundational decisions on any purchase loan.

Primary Residence: What Owner-Occupancy Actually Means

A primary residence is the property the borrower will occupy as their main home for the majority of the year. The borrower typically must move into the property within a defined time window after closing, usually 60 days, and must occupy it for a minimum period as defined by the program. Primary residence loans carry the most favorable pricing and the broadest program availability, including FHA, USDA, VA, and Conventional.

Second Home: Vacation, Snowbird, and Distance Requirements

A second home is a property the borrower will occupy as a secondary residence and not rent out as the primary use. The Fannie Mae and Freddie Mac Selling Guides outline occupancy expectations for second homes, including distance from the primary residence and limitations on rental use. Second homes are financed under Conventional programs primarily. FHA, USDA, and VA programs generally restrict to owner-occupied primary residences.

Investment Property: One Unit, Two-to-Four Unit, and Cash-Flow Qualification

An investment property is a property the borrower will not occupy and will operate as a rental, a hold, or another non-occupant use. Investment property loans are financed under Conventional, DSCR, and portfolio paths. Section 11 covers investor purchases in depth.

Why Occupancy Type Changes Your Rate, Down Payment, and Reserves

Occupancy type affects pricing because lenders and the secondary-market buyers behind the loan price risk based on owner-occupancy. A homeowner-occupant has a stronger statistical record of payment behavior than an investor-owned rental occupant. The occupancy type also affects minimum down payment and minimum reserve requirements, both of which step up as occupancy moves from primary to second home to investment.

How the BuildBuyRefi.com Purchase Loan Process Actually Works

The purchase loan process at BuildBuyRefi.com runs in five practical steps. Knowing what to expect at each step shortens the path and reduces stress.

Step 1: Eligibility Check Without a Credit Pull

The first step is an eligibility check completed without a credit pull and without sensitive information such as a Social Security number. The eligibility check confirms whether your scenario fits within an existing loan program before any formal application begins. Take the eligibility check at buildbuyrefi.com/check-eligibility.

Step 2: Pre-Qualification and What Comes With It

After the eligibility check, a banker reviews your scenario, runs the formal pre-qualification with your written authorization for the credit pull, and issues a pre-qualification letter. The pre-qualification letter is the document you provide to your real estate agent when making offers. It establishes the price range your file supports and the program you are working under.

Step 3: Rate Lock and Why Speed Protects Your Price

Once you have an accepted contract and have moved into the formal application, you and your banker discuss rate lock timing. Locking the rate fixes the interest rate for a defined window, typically 30 to 60 days. Speed matters because rate locks have expiration dates. A file that moves through underwriting on schedule preserves the lock; a file that delays may require a lock extension at additional cost.

Step 4: Underwriting, Conditions, and Clear to Close

Underwriting reviews the file, requests any additional documentation needed (called conditions), and issues a clear-to-close once all conditions are met. The conditions process is often the longest phase of the loan. Responsive document delivery shortens the process. Slow document delivery extends it. Your banker walks through the conditions in real time and lets you know what is needed.

Step 5: Closing Day and What to Expect

On closing day, you sign the loan documents, the loan funds, and the title transfers to you. Closing typically takes 30 to 90 minutes depending on the state and the closing format. After closing, the loan is yours and the home is yours.

Typical Timelines From Application to Funding

A standard purchase loan typically funds 30 to 45 days from accepted contract. Some files close faster, if you have everything ready we’ve closed in faster than 15 days, but these are rare rushed situations. Complex files, files with unusual property types, files with underwriting conditions that require third-party documentation, and files in markets with backed-up title or appraisal pipelines may take longer. Your banker provides a realistic timeline at the start of your file.

Purchase Cash-to-Close Estimator: What Your Real Numbers Look Like

The Purchase Cash-to-Close Estimator below lets you see what your cash to close may look like across the four core program paths, with optional views for the *$50,000 Consumer Loan and the up-to-30-percent Commission Savings Credit. The calculator is an illustrative tool, not a quote, pre-qualification, or commitment to lend.

How to Use This Estimator

Select your program: VA, USDA, FHA, or Conventional. The minimum down payment for the program is applied automatically (VA 0 percent, USDA 0 percent, FHA 3.5 percent, Conventional 5 percent). You may add additional down payment above the minimum. Enter the purchase price and the estimated closing costs. The estimator returns your estimated loan amount, loan-to-value, and total cash to close.

What the Numbers Mean and What They Do Not Mean

The calculator returns an estimate based on the inputs you provide and the program minimum down payment. It does not factor in mortgage insurance premiums, prepaid items such as property taxes and homeowners insurance, escrow deposits, or program-specific fees. Your actual cash to close at the closing table will differ. The calculator is a planning tool to help you understand the rough order of magnitude.

Adding the Optional *$50,000 Consumer Loan View

Toggle on the Consumer Loan view to see how the *$50,000 program may complement your post-closing financial picture. The Consumer Loan amount does not reduce your cash to close at the closing table, because Consumer Loan proceeds may not be used for any portion of the down payment or for the borrower's required minimum investment. The view shows the *$50,000 as an informational line item representing optional unsecured funds available before, at, or after closing for qualified borrowers.

Adding the Optional Commission Savings Credit View

Toggle on the Commission Savings Credit view to see how up to 30 percent in commission savings may apply to your transaction. Select your state from the dropdown. In Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee, the savings appear as an upfront commission reduction rather than as a closing credit, so the cash-to-close figure on the calculator is not reduced. In all other states, the savings appear as a closing credit and the cash-to-close figure is reduced accordingly.

Why This Is an Estimate, Not a Quote

Every loan is underwritten on its specific facts. The calculator cannot predict your interest rate, your exact closing costs, your mortgage insurance premium if any, or your specific cash-to-close because those numbers depend on full underwriting review. The calculator does what it can: it shows you the rough math of program minimums, down payment, closing costs, and the optional pairing layers. For a real number, talk with your loan officer.

Illustrative Borrower Scenarios

The following eight illustrative scenarios show what purchase loans at BuildBuyRefi.com look like across different borrower profiles. These scenarios are illustrative for educational purposes only. They are not guarantees of approval, program availability, specific terms, or outcomes for any individual borrower. All loan decisions are subject to full underwriting review.

Scenario 1: FHA First-Time Buyer at 3.5 Percent Down With *$50,000 Toward Furnishings and Reserves

A first-time buyer with documented W-2 income and a middle credit score above the FHA threshold purchases a $320,000 single-family home. She brings the FHA minimum 3.5 percent down payment of $11,200, plus closing costs and prepaids estimated at $9,000. After closing, she requests the in-house *$50,000 Consumer Loan and qualifies, drawing the funds for furnishings, moving costs, and a six-month reserve cushion. The Consumer Loan does not fund any portion of the down payment. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Scenario 2: Conventional 5 Percent Down Move-Up Buyer Preserving Liquidity

A move-up buyer with strong credit, two years of W-2 income, and substantial equity from the sale of his prior home purchases a $475,000 home with Conventional financing at 5 percent down. He brings $23,750 toward the down payment, finances the rest, and uses the proceeds from his prior home sale to retire credit-card debt and fund a brokerage account rather than draining liquid savings to pay cash at closing. He does not need the Consumer Loan in this scenario. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Scenario 3: VA 0 Percent Down Veteran With *$50,000 for Moving and Post-Closing Improvements

A fully entitled Veteran purchases a $390,000 home with 0 percent down VA financing. The VA funding fee is financed into the loan amount. His cash to close consists of closing costs and prepaids estimated at $7,500. After closing, he requests the in-house *$50,000 Consumer Loan and qualifies, drawing the funds for cross-country moving expenses, a new fence and small landscaping project, and a reserve cushion. The Consumer Loan does not fund any portion of the down payment. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Scenario 4: USDA Rural Buyer Using Commission Savings Toward a Permanent Rate Buydown

A buyer purchasing a $265,000 home in a USDA-eligible rural area enrolls in the Real Estate Commission Savings program before signing the representation agreement. The 30 percent savings on the buyer-side commission produce a closing credit. She elects to apply that credit toward discount points for a permanent rate reduction rather than to lower her cash to close at the closing table. The result is a lower fixed interest rate on her 30-year USDA loan. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome. Commission savings structure varies by state.

Scenario 5: Self-Employed Buyer Using a Bank Statement Program

A self-employed business owner with three years in the same business purchases a $620,000 home. Her tax returns understate her actual cash flow because of legitimate business deductions. Standard tax-return qualification on her file produces a lower approved loan amount than the home requires. Her banker walks her through the Non-QM bank statement program, which uses 24 months of business bank statements to derive a qualifying income figure that supports the loan amount. She closes on a Non-QM bank statement Conventional-style purchase. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Scenario 6: Second-Home Buyer on the Conventional Path

A buyer purchasing a $410,000 second home in a vacation destination puts 10 percent down with Conventional second-home financing. The property will not be a rental. Distance and occupancy requirements per the Selling Guide are met. The borrower's primary residence remains his existing home. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Scenario 7: Investor Purchase With *$50,000 for Property Prep After Closing

An investor purchases a $295,000 single-family rental property under a DSCR loan structure with 20 percent down. After closing, the investor requests the in-house *$50,000 Consumer Loan and qualifies, drawing funds for initial property prep, paint, flooring, and minor repairs to ready the property for rent. The Consumer Loan does not fund any portion of the down payment, and the underwrite for the Consumer Loan is separate from and not dependent on the mortgage approval. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Scenario 8: DPA-Layered Buyer Stacking Down Payment Assistance, Commission Savings, and the *$50,000 Pairing

A buyer with strong income but limited savings purchases a $285,000 home using FHA financing paired with our in-house Down Payment Assistance program, which covers the FHA 3.5 percent down payment requirement through a subordinate lien. He enrolls in the Real Estate Commission Savings program before signing the representation agreement, and the resulting closing credit reduces his out-of-pocket cash at closing. After closing, he requests the *$50,000 Consumer Loan and qualifies, drawing funds for furnishings and a reserve cushion. The Consumer Loan does not fund any portion of the down payment in any scenario. Illustrative example. Not a guarantee of approval, program availability, or any specific outcome.

Why Purchase Loans Get Declined

The following are the twelve most common reasons purchase loans get declined. Knowing them in advance helps you avoid them.

Purchase Loan Document Checklist

Gather these documents before you apply. The more complete your file at application, the faster your loan moves to closing.

Risks and Limitations Every Purchase Borrower Should Plan For

Buying a home is a significant financial decision. The following risks and limitations should be understood before you commit to a purchase contract or a loan application.

Rate Risk Between Pre-Qualification and Lock

Interest rates change daily and sometimes multiple times per day. A pre-qualification produced today does not guarantee the same rate at lock. Speed in moving from contract to lock matters. A delay of weeks may produce a different rate.

Appraisal Coming in Below Contract Price

The appraised value of the property may come in below the contracted purchase price. When that happens, the buyer typically must cover the gap with additional cash, renegotiate the contract with the seller, or terminate under the appraisal contingency. The Consumer Loan may not be used to cover an appraisal gap because the funds may not be applied to the down payment or the borrower's required investment.

Inspection Findings and Repair Negotiation

A home inspection may reveal conditions that require negotiation between buyer and seller. Repairs that affect program eligibility (safety, structural integrity, or habitability under FHA, USDA, or VA standards) must typically be completed before closing or addressed through escrow holdbacks where permitted.

Mid-Application Credit and Employment Changes

Opening new credit accounts, missing payments on existing accounts, taking on new auto or installment debt, or changing employment status during the loan process can change the underwriting picture. The safest path is to avoid voluntary credit or employment changes from application through closing.

Why Mortgage Approval Does Not Guarantee *$50,000 Consumer Loan Approval

The Consumer Loan is underwritten as a separate credit product. Mortgage approval does not guarantee Consumer Loan approval. If your post-closing financial plan depends on the Consumer Loan, discuss the likely qualification picture with your loan officer early, not at the last minute.

Why the *$50,000 Cannot Be Used for Down Payment, Even Indirectly

Consumer Loan proceeds may not be applied to the down payment under any program at any time. This rule applies even indirectly. A borrower cannot draw Consumer Loan funds, deposit them, season them in a personal account, and then claim them as down payment funds. Underwriting sources and traces large deposits. The down payment must come from acceptable sources as defined by the program.

How BuildBuyRefi.com Makes Money on a Purchase Loan

Transparency in lender economics matters because it lets you understand whose interests are aligned with yours. The Federal Savings Bank and BuildBuyRefi.com earn revenue when residential mortgages are originated, funded, and serviced. The principal revenue sources are standard origination charges, mortgage servicing rights, and the spread on loans we hold in portfolio.

We do not charge fees for eligibility checks. We do not charge fees for scenario review conversations. We do not sell your information to third-party lead networks.

The Real Estate Commission Savings program pays no remuneration to The Federal Savings Bank or to any of our bankers. The program exists to help consumers save on their real estate transactions. It is offered free.

The *$50,000 Consumer Loan is a separately underwritten product. Eligibility for the Consumer Loan is independent of the mortgage decision. We do not condition mortgage approval on Consumer Loan approval or vice versa. Both products are offered to qualifying customers who request them, and both stand on their own underwriting decisions.

If you decide we are not the right fit for your scenario, we will tell you that and try to point you toward someone who is. We would rather be honest about a poor fit than create a bad mortgage experience.

Frequently Asked Questions About Purchase Home Loans in 2026

What is the minimum down payment for a home purchase in 2026?

The minimum down payment depends on the program. VA financing requires 0 percent for eligible Veterans on qualifying transactions. USDA financing requires 0 percent for eligible buyers on eligible properties. FHA financing requires a 3.5 percent minimum borrower investment. Conventional financing requires as little as 3 percent under Fannie Mae HomeReady and Freddie Mac Home Possible for eligible buyers, with 5 percent as the standard Conventional minimum. Investment property and second-home financing require higher down payments under Conventional rules.

Can I really get up to *$50,000 in extra cash at closing?

Yes, qualifying mortgage clients of The Federal Savings Bank may pair their purchase loan with up to *$50,000 in optional unsecured Consumer Loan funds, available before, at, or after closing. Not all consumers will qualify. Subject to credit approval. Consumer loan proceeds may not be used for down payment. See the Client Consumer Loan page.

Can the *$50,000 Consumer Loan be used for the down payment?

No. Consumer Loan proceeds may not be used for any portion of the down payment on any program at any time. The Consumer Loan exists to support post-closing financial picture, not to fund the cash you bring to the closing table for the down payment.

Do I have to be a Veteran to get 0 percent down?

No. Veterans and eligible service members may use VA financing for 0 percent down. Non-Veterans may also access 0 percent down through USDA financing if they are buying an eligible property in a USDA-designated rural or suburban area and meet household income limits. If neither VA nor USDA applies, our in-house Down Payment Assistance program may bridge the down payment requirement on FHA or Conventional financing for qualifying buyers.

What credit score do I need to buy a house in 2026?

The minimum credit score depends on the program. Each program has its own threshold and we confirm the specific threshold during prequalification. Conventional financing typically expects a middle credit score of 620 or above. FHA accommodates a broader range and the specific threshold is confirmed at application. Lower scores may have a path through portfolio review with strong compensating factors.

Can I buy a house with a 580 credit score?

A 580 middle credit score may support an FHA loan at the program's then-current credit floor on qualifying transactions. Specific overlays apply. Portfolio review may support files below standard agency floors when compensating factors are present. The right path for a lower-credit file is identified during prequalification.

How long does it take to close on a purchase loan?

A standard purchase loan typically closes 30 to 45 days from accepted contract. Some files close faster. Complex files, unusual property types, or files in markets with backed-up title or appraisal pipelines may take longer. Your banker provides a realistic timeline at the start of your file.

Can I use gift funds for my down payment?

Yes. Gift funds are an acceptable source of down payment under FHA, USDA, VA, and Conventional financing, subject to each program's gift fund rules. The donor must be acceptable to the program, the funds must be documented with a gift letter stating no repayment is expected, and the transfer must be traceable through bank statements.

What is the difference between FHA, USDA, VA, and Conventional?

FHA is government-insured financing administered by HUD, with a 3.5 percent minimum down payment and broader credit accommodations. USDA is government-guaranteed financing for eligible borrowers in eligible rural and suburban areas, with 0 percent down. VA is government-guaranteed financing for eligible Veterans and qualifying surviving spouses, with 0 percent down and no monthly mortgage insurance. Conventional is private-market financing through Fannie Mae and Freddie Mac, with down payments as low as 3 percent and standardized underwriting rules.

Can ITIN borrowers buy a home in all 50 states?

Yes, qualifying ITIN borrowers may purchase a home on qualifying programs in all 50 states. The dedicated ITIN Home Loans page covers eligibility, documentation, and the program in depth.

When does a loan become a jumbo loan?

A loan becomes a jumbo loan when the loan amount exceeds the FHFA county conforming limit. The 2026 baseline conforming limit for one-unit properties is $832,750 in most counties, with high-cost counties reaching up to $1,249,125. Verify the limit for your county at the county loan limits page. Jumbo and Portfolio purchase loan amounts at our institution reach up to $10 million through in-house committee review with appropriate compensating factors.

Can I buy an investment property with one of these programs?

Yes. Investment property purchases are financed under Conventional, DSCR (Debt Service Coverage Ratio), and portfolio paths at BuildBuyRefi.com. Section 11 of this guide covers investor purchase loans in depth.

What is a Portfolio loan and when would I need one?

A Portfolio loan is a mortgage that The Federal Savings Bank holds in our own portfolio rather than sold into the secondary market. Portfolio financing is the path we use when a file requires an in-house committee decision rather than an automated underwriting decision built around agency-standard guidelines. Files with unusual income structures, unusual property types, or compensating factors that need a human reading of context may be a portfolio fit.

Do you finance barndominiums, log cabins, and ICF homes?

Yes. We finance barndominiums, log cabins, timber frame homes, SIP panel homes, ICF homes, and 3D-printed homes on qualifying programs. Each property type is subject to standard program requirements including comparable-sales appraisal and adherence to local building codes. Section 15 of this guide covers property types in depth.

How do I save 30 percent on real estate commission when I buy?

Through partnered real estate brokerage firms, qualifying buyers may save up to 30 percent on the commission paid by the represented side of the transaction. The savings appear as a closing credit, a rate buydown application, or an upfront commission reduction depending on the state. You must contact us before signing a representation agreement to qualify. Section 14 of this guide and the Real Estate Commission Savings page cover the program.

Why you can trust this information

Awards and industry recognition

Federal Agency and Regulatory References

Consumer Support and Contact Details

Ready to Buy Your Home Without Draining Your Savings?

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If you already own a home, our home refinance programs can help reduce your interest rate or monthly payment compared to a new purchase loan.