Define the target
Set the price range, acceptable payment, cash available, desired reserves, property type, occupancy, and timing.
Home purchase strategy
Home purchase loans.
Protect the plan.
A purchase mortgage should support the offer, preserve the right amount of cash, and produce a payment you understand—not simply win a rate comparison on one line.
Before the pre-approval
Know what the payment
is built from.
Principal and interest are only part of the monthly housing cost. A useful purchase analysis also estimates property taxes, homeowners insurance, association dues, and any mortgage insurance or government-program fees. Property-specific items—such as flood insurance, special assessments, or district charges—may matter as well.
Cash-to-close deserves the same visibility. Down payment, lender and third-party closing costs, prepaid interest, initial escrow funding, credits, and financed fees do different jobs. Treating them as one lump number can hide a tradeoff that matters later.
Fred’s role is to put those pieces side by side, compare them across a broad lender network, and explain why a particular structure may fit the property and your plan.
Buying for the first time? Use the free first-time homebuyer guide to organize your budget, closing cash, and questions before comparing loans.
A pre-approval is not the finish line.
Ask what income, assets, credit, and conditions have actually been reviewed—and what could still change when a specific property enters the file.
Common purchase paths
The program is a tool.
The fit is the strategy.
Eligibility, property standards, mortgage insurance, funding fees, pricing, and underwriting differ. Compare the complete structure.
| Path | Often considered when | Tradeoffs to model | Learn more |
|---|---|---|---|
| Conventional | Credit, down payment, and property fit standard agency guidelines. | Mortgage insurance, pricing adjustments, appraisal, reserves, and down-payment level. | Run estimate |
| FHA | Flexible credit or down-payment treatment may help an eligible primary-residence purchase. | Upfront and monthly mortgage insurance, property requirements, loan limits, and lender overlays. | FHA guide |
| VA | An eligible veteran, service member, or surviving spouse is buying an eligible home. | Entitlement, funding fee or exemption, residual-income review, appraisal, and occupancy. | VA guide |
| USDA | Both the household and property may meet rural-development eligibility. | Location and income limits, guarantee fees, property eligibility, and processing. | Run estimate |
| Jumbo or portfolio | The loan or scenario falls outside standard conforming guidelines. | Reserves, documentation, property type, lender appetite, and pricing dispersion. | Ask Fred |
Program descriptions are general and do not establish eligibility. Loan limits, guidelines, pricing, and property requirements change and must be verified for the transaction.
From idea to offer
A purchase process
with fewer blind spots.
Verify the borrower picture
Review the income, assets, debts, credit, and documentation that matter to the intended program and pre-approval.
Compare structures
Evaluate lender pricing, points or credits, mortgage insurance, financed fees, and the cash-payment tradeoff rather than one headline rate.
Connect the property
Update taxes, insurance, association dues, appraisal considerations, and program eligibility when the actual home is identified.
Execute the chosen plan
Keep the financing, appraisal, documentation, and closing timeline coordinated as conditions are cleared.
Offer strategy
Credits and buydowns
need real math.
A seller credit can reduce eligible closing costs, fund a temporary buydown when permitted, or support another approved structure. Its value depends on the negotiated price, contribution limits, appraisal, program, and how the funds are used.
Reduce eligible closing costs
Preserving cash after closing may matter more than using every available dollar for down payment.
Model a temporary buydown
See the early payment path and estimated subsidy without pretending the note rate changed.
Run the buydown →Compare the full concession
A credit is negotiated consideration. Model the price, appraisal risk, contribution rules, and alternatives together.
A purchase decision, in numbers
Seller credit or
price reduction?
A seller credit can preserve cash at closing. A lower purchase price reduces the amount you pay for the home and, with the same down-payment percentage, the amount you borrow. Compare both outcomes before choosing.
Hypothetical example: a $12,000 concession.
Assume a $600,000 purchase, 20% down, and $12,000 of eligible closing costs in either option. Also assume the loan permits the full credit and the appraisal supports the agreed price.
- Seller credit: The price stays $600,000, the down payment is $120,000, and the loan is $480,000. A $12,000 credit covers the modeled eligible closing costs.
- Price reduction: The price becomes $588,000, the down payment is $117,600, and the loan is $470,400. The buyer still pays the modeled $12,000 of closing costs.
In this example, down payment plus modeled closing costs totals $120,000 with the credit versus $129,600 with the price reduction. The credit preserves $9,600 more cash; the price reduction means borrowing $9,600 less.
These figures exclude deposits already paid and any costs outside the stated assumptions. Actual closing costs, appraisal, contribution limits, and loan terms can change the comparison. A Fannie Mae seller contribution cannot fund the buyer’s down payment or reserves.
Illustrative planning example only, not a loan offer or commitment to lend. Source: Fannie Mae’s seller-contribution guidance. Reviewed September 6, 2026.
Your purchase
Shop for the home
with the financing understood.
Share the target price, property state, available down payment, and timing. Fred will help turn those constraints into a practical next step.