Understanding the Different Home Loan Options Available in Savannah
- Ruben Ramos
- 4 days ago
- 2 min read
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.