Understanding the Different Home Loan Options Available in Savannah

An overview of FHA, Conventional, VA, and USDA loans—helping you decide what fits your situation.

Buying a home in Savannah often starts with sorting through mortgage choices. Here’s a breakdown of the four most common loan types available to local buyers, with recent data to help you decide what works best for you.

1. FHA Loans: Lower Barriers, Higher Insurance

• Backed by the Federal Housing Administration

• Requires a minimum credit score of 580 for a 3.5% down payment, or 500–579 with 10% down

• Upfront mortgage insurance premium (1.75% of loan) plus annual premiums, typically 0.15–0.75%

• Best for buyers with limited savings and moderate credit; eligible for primary residences nationwide

  
  

2. Conventional Loans: Flexible, Potentially Cheaper

• Not government-backed; issued via Fannie Mae or Freddie Mac

• Generally requires credit score of 620+

• Down payments can start at 3%, with private mortgage insurance (PMI) required under 20% down, but cancelable after reaching 80% equity

• Great for buyers with solid credit, some savings, and desire for broader property choices, including investment homes

3. VA Loans: Zero Down for Veterans

• Available only to eligible veterans, active-duty service members, and some National Guard/reserve

• No down payment, no PMI, but includes a one-time funding fee (can be rolled into loan)

• Excellent choice for military buyers; covers primary residences only

4. USDA Loans: No Down for Rural Buyers

• For buyers in USDA-designated rural zones around Savannah

• No down payment; credit score typically needs to be 600–640+

• USDA funding fee of 1% upfront and annual mortgage insurance of ~0.35%

• Usually offers interest rates about 0.5–0.75% lower than FHA or conventional loans

5. 2025 Georgia Mortgage Context

• Typical 30-year fixed mortgage rates in Georgia are around 6.58%

• FHA trades slightly lower at ~6.75%; VA slightly higher near 6.91%

• USDA rates may be another 0.5–0.75% lower, depending on lender

6. Which One Fits You?

Loan Type	Best If…	Tradeoffs
FHA	You have a modest credit score or limited savings	MIP can’t be removed until refinance or payoff
Conventional	You have solid credit and some savings	Need at least 3% down, PMI if under 20%
VA	You’re eligible through military service	Only available to veterans/military
USDA	You’re buying in a rural zone and want 0% down	Income limits, rural-only, specific inspections

7. Local Programs to Combine

• Georgia Dream and Peach Plus offer down payment assistance when used with FHA, VA, USDA, or conventional loans

• Savannah-area VA buyers can access Peach Select, below-market rates and funds for down payment

  
  

Choosing the right loan depends on your financial profile, the location of your property, and whether you qualify for military or assistance programs. USDA may offer low rates and zero down if you’re buying on the outskirts. VA is unbeatable if you qualify. FHA opens doors to those with tighter financials, and conventional is strong for buyers with savings and credit. Federal, state, and regional programs can also help with closing costs or down payments.

Ready to see which loan fits you best in Savannah’s 2025 market?

Reach out and I’ll connect you with local lenders who can run the numbers and guide next steps.

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