The strongest offers start with clarity and confidence.
Whether you’re buying your first home, upgrading to fit a growing family, or selling the house where your favorite memories were made, financing plays a key role in the process. As real estate agents, we see every type of loan come across our desks, and we know how overwhelming the terminology can feel if you’re not living in this world every day.
So, let’s break it down in plain English: what the most common loan types are, how they benefit the buyer, and how they’re perceived by sellers. Because the more you know, the more empowered you’ll feel when it’s time to make (or accept) an offer.
Conventional Loans
For Buyers:
A conventional loan is one that isn’t backed by a government agency. These loans usually require a higher credit score, solid income history, and a down payment, often around 5–20%, though some programs allow as little as 3%. If you’re financially ready, conventional loans can offer flexibility in terms, competitive rates, and the ability to remove private mortgage insurance (PMI) once you reach 20% equity.
For Sellers:
Conventional loans are often considered the “cleanest” type of financing. There’s no government-required inspection, which reduces the chance of repair surprises, and the process can move quickly. When we present an offer with conventional financing, it often gives sellers peace of mind that the deal will stay on track.
Our Tip:
If you’re a buyer considering a conventional loan, talk to a trusted lender early so you know your numbers. A strong pre-approval can give you an edge in a multiple-offer situation.
FHA Loans (Federal Housing Administration)
For Buyers:
FHA loans are designed to make homeownership more accessible, especially for first-time buyers or those with less-than-perfect credit. With a down payment as low as 3.5% and more flexible credit requirements, this loan is a powerful tool to help more families say “yes” to home. You will pay mortgage insurance (MIP) for the life of the loan unless you refinance later, but the trade-off is often worth it.
For Sellers:
Some sellers may worry that FHA loans will require repairs or delay the closing, but the truth is with good agents and realistic expectations, FHA deals close every day. The home does need to meet HUD’s safety and livability standards, such as working utilities, no major hazards, functional heating/cooling. If your home is in generally good condition, there’s usually nothing to fear.
Our Note:
As agents, we advocate for both our sellers and our buyers, and we make sure everyone understands the process so these deals don’t fall through over small details.
VA Loans (Veterans Affairs)
For Buyers:
If you’re a veteran, active-duty service member, or an eligible surviving spouse, the VA loan is one of the best benefits available. With no down payment required, no PMI, and low interest rates, this loan can dramatically improve monthly affordability. VA loans also cap the amount buyers can be charged in fees, which protects your bottom line.
For Sellers:
Sellers sometimes hesitate with VA loans due to the required appraisal and condition standards, but don’t let that deter you. VA buyers are often highly motivated and financially stable. These loans close just as smoothly as any other when we prepare the paperwork well and communicate with all parties.
Our Reminder:
If you’ve served, we’re honored to serve you. We work closely with lenders who understand the VA process and can advocate for your best interests.
USDA Loans (U.S. Department of Agriculture)
For Buyers:
USDA loans are available to buyers purchasing in eligible rural and suburban areas (yes, even in counties near Fayette and Coweta). They offer 100% financing, meaning no down payment required, plus competitive interest rates. To qualify, buyers must meet certain income limits, and the property must be located in a USDA-approved zone.
For Sellers:
Just like VA and FHA loans, USDA loans require the property to meet specific condition guidelines, but the pool of buyers looking in these areas can be a perfect fit for certain homes. These offers are legitimate and very worthwhile when paired with the right buyer.
Our Insight:
USDA financing is a hidden gem that can open doors for families who want more home and more space for their money, especially in growing communities.
So… Which Loan Is Best?
There’s no one-size-fits-all answer. The “best” loan is the one that fits your life, your finances, and your long-term goals.
As agents, we don’t just help people buy and sell houses; we help people navigate major life transitions. That means looking at every piece of the puzzle: your timeline, your financial goals, and the type of home (and lifestyle) you want to build.
Whether You’re Buying or Selling…
Knowing what’s behind each loan type helps make the process smoother, more transparent, and less intimidating.
Buyers: We’ll walk through your pre-approval options, connect you with lenders we trust, and help you write a smart, competitive offer, no matter which loan type you use.
Sellers: We’ll help you understand each offer’s full story. It’s not just the loan type, but also the buyer’s qualifications, timeline, and seriousness. We want you to feel confident saying yes to the right one.
You are more than just a transaction. You deserve support, insight, and a team that sees the big picture.
If you’re curious about where to start, want a lender recommendation, or just need someone to explain the fine print in normal-people language. We’re always here for you.
Helping you feel confident and cared for? That’s what we do best. 🤍
The Gals at Good to Be Home 🐝
