Loan Options

Special Programs

These options can open doors for first-time buyers, renovators, and investors.

Skim the highlights below, then tap Get Pre-Approved and we’ll tailor the best fit for you.

Understanding Where To Start

The Big Picture

Whether you’re buying your first place, fixing up “the one,” or expanding into rentals, the right program can lower cash-to-close, roll repairs into a single payment, or leverage rental income. We’ll compare your options side-by-side and get you pre-approved fast, so you’re ready when opportunity knocks.

Entry-friendly mortgages with low down payment options and in some cases $0 down

Finance your purchase + improvements in one loan

Conventional financing for 1–4 unit homes you plan to rent (non-owner-occupied).

What is a

First-Time Buyer

Entry-friendly options with low or even $0 down depending on eligibility and location (e.g., Conventional 3% down like HomeReady®, FHA 3.5% down, VA often $0 down for eligible borrowers, USDA $0 down in eligible rural areas).

How it works:

Programs set guidelines for credit, income, and area eligibility. Conventional options may allow cancelable mortgage insurance once you build enough equity; government-backed loans have their own insurance/funding rules.

Best For...

  • First-time (or returning) buyers wanting low cash-to-close

  • Buyers with limited down payment savings

  • VA-eligible buyers and homes in USDA-eligible areas

Pros

  • Lower cash to get started (3%–3.5% down; some $0 down paths).

  • Several tracks to fit different credit/income profiles.

  • Conventional MI can typically be removed when you hit required equity.

Considerations

  • Income/area limits for some Conventional and USDA options.

  • FHA includes upfront + annual mortgage insurance.

  • VA has a one-time funding fee unless exempt.

Not sure which loan fits?

That’s what we’re here for. Tell us a bit about your budget and timeline, we’ll compare your options side-by-side and recommend the best path.

What is a

Renovation Loan

Bundle purchase + improvements into one mortgage, ideal for homes that need repairs or upgrades now.

How it works:
Contractor scope/bids are reviewed up front; renovation funds are escrowed and released in draws as work is completed (203(k) or HomeStyle®).

Best For...

  • Buyers targeting “needs-TLC” properties

  • Owners planning a refi + renovate in one step

  • Projects that require licensed contractors and inspections

  • Situations where as-completed value helps qualify

Pros

  • One loan, one payment (buy + renovate)

  • Broad project flexibility (program-eligible repairs/upgrades; ADUs under HomeStyle® in many cases)

  • Can avoid juggling a second loan/HELOC

Considerations

  • Requires bids, licensed contractors, timelines, and draw management

  • FHA 203(k) includes mortgage insurance; Conventional terms vary by profile

  • Program rules/limits update periodically, confirm current details

Quick Tips

  • Eligibility varies. Income, area, occupancy (primary vs. investment), and property condition can change which programs you qualify for.

  • Stack the help. Down payment/closing-cost assistance may pair with these programs, ask us to check what’s available for you.

  • Compare total cost, not just the rate. Include mortgage insurance, funding/guarantee fees, and any renovation or escrow costs.

  • Keep finances steady until closing. Avoid new debt, job changes, and large unexplained deposits.

  • Optimize your offer. We’ll model seller credits vs. rate buydown so you see which move lowers your true monthly and cash-to-close.

What is a

Investment Property Loans

Conventional financing for non-owner-occupied 1–4 unit homes you plan to rent—underwritten with investor-specific rules (reserves, rental-income treatment, pricing).

How it works:
Lenders classify occupancy as investment property and apply GSE guidance for rental income, reserves, and multi-property limits; Freddie Mac has parallel standards.

Best For...

  • Buyers building a rental portfolio (1–4 units)

  • Investors with stronger reserves and stable income

  • Those comparing cash-flow vs. down payment trade-offs

  • Borrowers comfortable with documentation of current/projected rents

Pros

  • Clear underwriting paths via GSE guides

  • Potential for long-term wealth and diversified income

Considerations

  • Stricter qualification (credit, reserves, pricing adjustments)

  • Rental income must meet documentation/qualifying rules

Compliance and Disclaimer

Programs, rates, and eligibility change, your exact terms depend on your credit, income, property, and program rules. We’ll confirm details and provide written estimates before you decide.


Equal Housing Lender • NMLS #295556 • Minnesota-based since 2000

Beyond the Mortgage: Helping You Find Your Home

Securing the right loan is just the beginning. Through our Homebuyer Concierge Service, we’ll personally connect you with recommended Minnesota realtors who know the market inside and out. It’s our way of making sure you have the right team beside you, from pre-approval to closing day.

At Equity Source Mortgage, we’re more than loan officers, we’re your lifelong partners in homeownership.

Whether it’s your first home, your next home, or simply making your current one the right fit through refinancing, we’re here to guide you with clarity, care, and confidence.

NMLS #295556

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