Competitive mortgage rates, multiple loan programs, and a fully digital experience — helping Americans achieve homeownership across all 50 states.
A NexaBank Home Loan — commonly called a mortgage — is a long-term secured loan that allows you to purchase, refinance, or build residential property in the United States. The property itself serves as collateral, meaning NexaBank holds a lien on it until the loan is fully repaid. Once you've made your final payment, the lien is released and you own the property outright.
Home loans are typically the largest financial commitment most Americans will ever make, so understanding your options is critical. NexaBank offers a comprehensive suite of mortgage products to accommodate first-time homebuyers, seasoned property investors, veterans, and low-to-moderate income borrowers alike.
A conventional mortgage is not backed by any government agency and typically requires a minimum credit score of 620 and a down payment of at least 3% for first-time buyers (20% to avoid Private Mortgage Insurance). Conventional loans are ideal for borrowers with strong credit histories.
Insured by the Federal Housing Administration, FHA loans are designed for first-time buyers and those with less-than-perfect credit. With a credit score as low as 580, you can qualify with just 3.5% down. Borrowers with scores between 500–579 may qualify with 10% down. FHA loans carry both an upfront mortgage insurance premium (1.75% of loan amount) and annual MIP.
Exclusively available to eligible U.S. veterans, active-duty service members, and surviving spouses, VA loans are guaranteed by the Department of Veterans Affairs. They offer exceptional benefits: no down payment required, no private mortgage insurance, competitive interest rates, and limited closing costs. A VA Funding Fee (1.25%–3.3%) applies but can be rolled into the loan.
Backed by the U.S. Department of Agriculture, USDA loans help low-to-moderate income borrowers purchase homes in eligible rural and suburban areas with zero down payment. Income limits apply based on household size and location. A 1% upfront guarantee fee and 0.35% annual fee apply in lieu of PMI.
An ARM offers a lower initial fixed rate for a set period (commonly 5, 7, or 10 years), after which the rate adjusts annually based on a benchmark index (typically the SOFR). ARMs are well-suited for borrowers who plan to sell or refinance before the adjustment period begins, or who expect interest rates to fall.
When you need a mortgage that exceeds FHFA conforming loan limits ($766,550 in most counties), a jumbo loan is the solution. These are non-conforming loans that NexaBank underwrites internally, offering up to $2 million for luxury homes, high-cost markets, and investment properties. Stricter qualification standards apply.
The most fundamental choice in home financing is between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). With a fixed-rate loan, your interest rate is locked for the entire loan term — predictable, stable, and ideal if you plan to stay in your home long-term or if rates are historically low. A 30-year fixed is the most popular mortgage product in America because of its manageable monthly payments and long-term stability.
An ARM, by contrast, starts with a lower rate that can save you thousands in the early years, but adjusts periodically based on market conditions. This introduces rate risk — if interest rates rise significantly, your monthly payment could increase substantially. ARMs are best suited for financially flexible borrowers with a defined shorter-term horizon.
| Cost Item | Typical Amount | Paid When |
|---|---|---|
| Down Payment | 3% – 20% of purchase price | At closing |
| Origination Fee | 0.5% – 1.5% of loan amount | At closing |
| Appraisal Fee | $300 – $700 | During process |
| Title Insurance | $500 – $1,500 | At closing |
| Home Inspection | $300 – $600 | During process |
| Private Mortgage Insurance (PMI) | 0.5% – 1.5% of loan/yr | Monthly (until 20% equity) |
| Property Taxes (Escrow) | Varies by state/county | Monthly via escrow |
| Homeowners Insurance | $800 – $3,000/year | Monthly via escrow |
Minimum 580 for FHA, 620 for conventional. Higher scores unlock better rates — 740+ qualifies for top-tier pricing.
Maximum DTI of 43% for conventional (up to 57% for FHA with compensating factors). Lower DTI = better approval odds.
Minimum 2 years of stable employment or self-employment. W-2s, tax returns, and pay stubs will be required.
Must demonstrate sufficient funds for down payment, closing costs, and 2–12 months of mortgage reserves depending on loan type.
Answer a few questions about income, assets, and desired loan amount. Soft credit pull only — no impact on your credit score.
Submit documents: W-2s, pay stubs, bank statements. Hard credit pull. Receive a pre-approval letter valid for 90 days.
NexaBank orders an independent appraisal to confirm the property's fair market value supports the loan amount.
Our underwriting team reviews your complete file. You may receive Conditional Approval with requests for additional documents.
All conditions are satisfied. You receive a Closing Disclosure 3 business days before closing detailing final costs.
Sign the final documents, pay closing costs and down payment, receive the keys to your new home!