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Buying or Refinancing? Specialized Home Loans Could Help.

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Buying or Refinancing? Specialized Home Loans Could Help.

Your home is likely the biggest purchase you’ll ever make and the biggest single piece of your overall financial picture. No one should take the decision lightly, and it’s worthwhile to give the financing extra consideration before shopping around.

Whether buying or refinancing, some people may wonder if they’re quite ready to take that step for several reasons, including affordability or other personal circumstances. But a variety of Pinnacle specialized loans are designed for just about every situation to help overcome many of the questions faced along the road to home ownership.

“Can I afford the loan and closing costs?”
For some, questions about home loans start with what can they can afford or qualify for. The answer could be as simple as working with a mortgage advisor to get pre-qualified. This step gives you peace of mind and more confident buying power.

Fortunately, there are loan programs designed for low- to moderate-income buyers that require no down payment nor private mortgage insurance (PMI) and come with an affordable interest rate. Some loans even allow you to partner with community development organizations to cover most or all of the closing costs.

Affordable loans, however, may come with a few strings. For starters, buyers must meet income requirements and sometimes might need to live in certain designated areas. The home must be a primary residence, and the standard qualifications for borrowing will apply.

Further, the Federal Housing Administration makes it possible to offer loans with low down payments and credit requirements that aren’t as stringent as other types of loans.

“How can the neighborhood I choose affect my mortgage?”
When you’re in the market for a mortgage or refinance, take a close look at where the home is located. Buying in some neighborhoods might help you qualify for a loan that requires no down payment or PMI. This is one way the federal government encourages lending and development in designated census tracts. For those areas, it doesn’t matter how much your income is. Just buying there makes you eligible to apply for the specialized loan.

“Is it smarter to buy or build in a rural area?”
Living in the country can offer more than peace and quiet. Looking again at location, some loans are designed to encourage investment in rural communities, either through buying a home or an undeveloped lot to build on. Some permanent loans can offer no down payments, and lot loans can come with more flexible payment terms.  

“Are special allowances made for active duty service members or veterans?”
We all want to honor those who serve our country in the military, and there’s even help available for home buying. Active duty service members, veterans and spouses of veterans are eligible to apply for Veterans Administration loans that come with no down payment and give the option of having the seller pay closing costs.

No matter your circumstance, it’s worth taking a look at all of your options and what you’re eligible for before deciding what steps to take next. A simple conversation with a mortgage advisor is a great place to start.


Beth Riley is a mortgage advisor for Pinnacle Financial Partners. She is based at the firm’s Shady Grove office in Memphis and can be reached by phone at 901-259-5677 or by email at [email protected].

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