How to finance your new home

Buying a new home is an exciting prospect, but financing that purchase can be a little less so. Securing a loan from a bank isn’t always easy, so we’ve put together a few tips that can simplify the financing process and get you in your new home quicker.

Below is a list of nontraditional financing options that you may not know about. We are happy to steer buyers to the right loan type for you, so feel free to ask Monnie about them!

Federal Housing Administration Loans: FHA loans are a great way to buy your first home. They can offer low down payments (as low as 3.5% of the purchase price), low closing costs and easy credit qualifying. This loan is available for traditional as well as mobile or manufactured homes. The FHA also offer reverse mortgages for seniors over 65, and financing for making energy efficiency improvements to your home. You can learn more at

US Department of Veterans Affairs (VA) Loans: Loans from the VA provide extraordinary financing options for those families who have served our country. With a VA loan, private lenders such as banks lend the money, while the VA guarantees a portion of the loan. This means that the bank is able to offer you more money than you would qualify for on your own. Find more information here:

USDA Loans: The USDA loans are the perfect solution for residents of Runnels County, as they are specifically designed for financing rural properties. These loans assist buyers who are able to make monthly payments but do not have the money for a down payment and are great for low income buyers. They also offer savings by not requiring monthly mortgage insurance. Find out more at

Conventional Loans: These are a more traditional approach to meeting buyers needs. A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate, and can be obtained through banks, mortgage companies and credit unions. If you are pursuing financing through a conventional loan, think first about trying a local bank – they often have better terms than the larger institutions.

At Cottonwood, we have experience in FHA and USDA loans, especially for buyers who can make a monthly payment but need help with down payment and closing costs. If you have a dream of owning a home, but are concerned about getting financing, talk to Monnie. She can help you explore all the financing options to get you into a home. Call her at 325.365.6404.