When it comes to financing a home in Buffalo, there are many options available. From traditional mortgages to specialized loans like jumbo loans and bridge loans, it can be overwhelming to navigate the world of home financing. In this blog, we will discuss some of the most common types of home loans and financing options available in Buffalo, and how the agents at Buffalo Brick & Mortar LLC can help you find the perfect home. When it comes to buying a home—or tapping into your home’s equity—choosing the right financing option is just as important as finding the right property. In a diverse and evolving market like Buffalo, NY, understanding the various types of loans available can give you a competitive edge and help you make smarter financial decisions.
From jumbo loans to bridge loans, HELOCs, and beyond, here’s what you need to know about real estate financing in Buffalo and Western New York.
Traditional Mortgages
A traditional mortgage is a home loan that is not backed by the government. These loans are typically offered by banks and other financial institutions, and they require a down payment of at least 3% of the home’s purchase price. The interest rate on a traditional mortgage can vary depending on a number of factors, including the borrower’s credit score, income, and debt-to-income ratio. Most homebuyers in Buffalo use conventional loans—especially first-time buyers and those purchasing homes under $766,550. These loans are offered by private lenders and typically conform to Fannie Mae and Freddie Mac standards.
FHA Loans
An FHA loan is a government-backed mortgage that is designed to help first-time homebuyers and low-income borrowers. These loans are offered by the Federal Housing Administration (FHA), and they require a down payment of at least 3.5% of the home’s purchase price. The interest rate on an FHA loan is typically lower than on a traditional mortgage, but borrowers are required to pay mortgage insurance premiums.
Low down payment (as little as 3.5%)
Great for first-time buyers or those with lower credit scores
Widely used in Buffalo’s more affordable neighborhoods
VA Loans
A VA loan is a mortgage that is guaranteed by the United States Department of Veterans Affairs. These loans are available to active-duty military personnel, veterans, and their spouses. VA loans require no down payment and typically have lower interest rates than traditional mortgages. However, borrowers are required to pay a funding fee, which can vary depending on the size of the loan and the borrower’s military service status.
Available to veterans, active-duty military, and eligible spouses
No down payment required
Popular in Buffalo suburbs with military families
USDA Loans
A USDA loan is a government-backed mortgage that is designed to help borrowers in rural areas. These loans are offered by the United States Department of Agriculture, and they require no down payment. The interest rate on a USDA loan is typically lower than on a traditional mortgage, but borrowers are required to pay mortgage insurance premiums.
No down payment required
For rural and some suburban areas (parts of Erie County qualify)
Income limits apply
Jumbo Loans
A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. In Buffalo, the conforming loan limit for a single-family home is $548,250. Jumbo loans are typically used to finance high-end properties and luxury homes. These loans typically require a higher down payment and have higher interest rates than traditional mortgages.
Bridge Loans
A bridge loan is a short-term loan that is used to bridge the gap between the purchase of a new home and the sale of an existing home. These loans are typically used by homeowners who need to move quickly, but who have not yet sold their current home. Bridge loans typically have higher interest rates and fees than traditional mortgages, but they can be a great option for homeowners who need to move quickly.
HELOCs
A home equity line of credit (HELOC) is a revolving line of credit that is secured by the borrower’s home. HELOCs are typically used to finance home renovations, debt consolidation, or other large expenses. With a HELOC, borrowers can withdraw money as needed, up to a certain limit. The interest rate on a HELOC is typically variable, and it can vary depending on the borrower’s credit score and the prime rate.
How Buffalo Brick & Mortar LLC Can Help You Find the Perfect Home
At Buffalo Brick & Mortar LLC, our agents have years of experience helping clients find their dream homes in Buffalo. We understand that every client is unique, and we work with each client to understand their individual needs and preferences. Whether you are a first-time homebuyer or an experienced investor, we can help you find the perfect home.
Our agents have a deep knowledge of the local real estate market in Buffalo. We stay up-to-date on market trends, home values, and new developments, so that we can provide our clients with the most accurate and up-to-date information.
We also have a wide network of lenders and mortgage brokers in Buffalo. We can help you find the best financing options for your specific needs and budget. Whether you are looking for a traditional mortgage, a jumbo loan, or a bridge loan, we can connect you with the right lender.
In addition, we offer a variety of other services to help our clients throughout the home-buying process. We can help you find a home inspector, a real estate attorney, and other professionals who can assist with your home purchase. We can also help you navigate the complex process of negotiating and closing on a home.
Buffalo’s housing market offers something for everyone—from affordable starter homes to luxury estates. The right financing strategy depends on your budget, goals, and where you’re buying. Whether you’re:
- Upgrading to a $900,000 waterfront property,
- Renovating a historic home in Elmwood Village, or
- Tapping equity to send your kids to college…
…you have options.
Want Help Navigating Your Financing Options?
At [Your Company Name], we partner with local lenders and mortgage advisors who understand Buffalo’s unique market. Contact us today to get personalized guidance or connect with a mortgage professional who can walk you through the process step by step.
Financing a home in Buffalo can be complex, but with the right guidance and support, it doesn’t have to be overwhelming. At Buffalo Brick & Mortar LLC, our agents have the expertise and experience to help you find the perfect home and the right financing options to make it a reality. Contact us today to learn more about how we can help you find your dream home in Buffalo. 716-403-2016