A Down Payment Assistance (DPA) loan helps homebuyers cover the cost of their down payment, making it easier to purchase a home with less upfront financial burden. These programs are often available to first-time homebuyers or those with moderate income and can come in the form of grants, low-interest loans, or deferred payment loans. DPA loans are designed to make homeownership more accessible by reducing the biggest barrier to entry for many buyers—saving for a large down payment.
A Bank Statement loan is a type of mortgage tailored for self-employed individuals or those with non-traditional income sources who may not qualify through traditional methods like tax returns or W-2s. Instead, lenders evaluate income based on 12 to 24 months of personal or business bank statements, offering a more accurate picture of cash flow. This loan option provides flexibility for entrepreneurs, freelancers, and business owners, making it easier to secure financing for a home when conventional documentation doesn’t reflect their true earning potential.
A construction loan is a short-term, specialized financing option designed to fund the building of a new home or major renovations to an existing property. Construction loans can be used to cover the cost of land. Unlike traditional mortgages, construction loans provide funds in stages as the project progresses, with interest only charged on the amount disbursed. These loans typically require a clear construction plan, detailed budget, and timeline, and once the build is complete, the loan often converts into a long-term mortgage. Ideal for homeowners and developers, construction loans offer the flexibility to create a customized property from the ground up.
