The Loan Programs Every Agent Should Know

 Your Guide to Becoming an Even Stronger Resource for Buyers

As a real estate agent, your clients count on you for more than finding the perfect home, they rely on your expertise to guide them through every step of the purchase, including financing. While you’re not expected to be a mortgage expert, having a solid understanding of key loan programs can set you apart from the competition and position you as an even more trusted advisor.

Here’s a quick rundown of the most common, and most powerful, loan programs every agent should know:

1. Conventional Loans

These are the most widely used home loans, backed by Fannie Mae and Freddie Mac.

Why it matters:

• Ideal for buyers with good credit and stable income.

• Flexible down payment options—can be as low as 3% for first-time buyers.

• Typically faster processing times.

2. FHA Loans

Insured by the Federal Housing Administration, FHA loans are designed for buyers with lower credit scores or smaller down payments.

Why it matters:

• Just 3.5% down required.

• More lenient credit guidelines.

• Great for first-time homebuyers or those rebuilding credit.

3. VA Loans

Available to eligible veterans, active-duty service members, and some surviving spouses.

Why it matters:

• Zero down payment required.

• No mortgage insurance.

• Competitive interest rates and flexible credit standards.

4. USDA Loans

Backed by the U.S. Department of Agriculture, these are available for rural and some suburban properties.

Why it matters:

• No down payment required.

• Lower mortgage insurance costs.

• Income limits and property eligibility apply, but these loans can be a game-changer in qualifying areas.

5. Jumbo Loans

Used for loan amounts that exceed conforming loan limits (which vary by county).

Why it matters:

• Often necessary in higher-priced markets or for luxury properties.

• Typically requires strong credit, a larger down payment, and sufficient reserves.

• Many buyers don’t realize this option exists outside of the big banks—local lenders like us offer them too.

6. Renovation Loans (FHA 203(k) & Homestyle®)

Allow buyers to finance the purchase and renovation of a home in one mortgage.Why it matters:

• Perfect for clients eyeing a fixer-upper or who want to update a dated home.

• Helps buyers consider a wider range of inventory.

• Can also be used for refinancing current homes.

7. First-Time Homebuyer & State Housing Programs

Many states offer special programs with down payment assistance, reduced interest rates, or tax incentives.

Why it matters:

• Can bridge the affordability gap for new buyers.

• Often combined with conventional or FHA loans.

• Varies by location—partnering with a local lender ensures clients get access to all available options.

8. Non-QM Loans (Non-Qualified Mortgage Programs)

These flexible loan options are designed for borrowers who don’t fit into traditional lending boxes. Best for self-employed buyers, real estate investors, or clients with unique income situations.

Key highlights:

• Bank statement loans (no tax returns required)

• Asset depletion and interest-only options

• DSCR (Debt-Service Coverage Ratio) loans for investment properties

• Ideal for high-net-worth clients with non-traditional income documentation

Why This Matters to You as an Agent:

Knowing these loan types helps you:

• Match buyers with homes they can realistically afford and finance.

• Set more accurate expectations around timelines and contingencies.

• Earn client trust by showing you understand the full picture, not just the home, but how they’ll buy it.

• Work seamlessly with lenders to create a smooth transaction from offer to closing.

Partner With the Right Lender

Not all lenders are created equal. At Northpoint Mortgage, we’re here to be a resource not just for your clients, but for you. Whether you need quick pre-approvals, scenario support, or help explaining financing options to a buyer, we’ve got you covered.

Want a loan program cheat sheet for your next open house or client meeting? Reach out, one of our local Northpoint Loan Officers would be happy to send one your way.

Let’s help more buyers say “yes” to homeownership - together. Reach out to a local Northpoint Loan Officer anytime to talk through options or get a second look at a scenario.