Get a Great Mortgage in 2025
Originally published in 2017. Updated with the latest mortgage information for 2025.
Are you thinking about buying a house in 2025? If so, you’ll be navigating a mortgage market that has shifted over the last few years. While today’s rates aren’t at the historic lows we saw during the pandemic, they are stabilizing and remain favorable compared to long-term averages. How can you make sure you get the best possible rate on your new mortgage? Use these updated 2025 strategies to secure a great deal.
Understand Your Down Payment Options
Many buyers assume they need a large down payment to buy a home, but today’s lending landscape offers more flexibility than ever. While 20% down can help you avoid private mortgage insurance (PMI), it’s not required for many loan types. In 2025, several programs still allow low—or even zero—down payments:
- VA Loans: Offer 0% down for eligible veterans, active-duty service members, and qualifying Guard/Reserve members.
- USDA Rural Development Loans: Provide 0% down for homes in eligible rural/suburban areas.
- Navy Federal Credit Union: Offers zero-down options for qualifying members.
- FHA Loans: Require as little as 3.5% down.
- Conventional Loans: Many lenders offer 3% down options with PMI.
FHA Loans Remain a Strong Option for Imperfect Credit
FHA loans continue to be a top choice for buyers who need more flexible credit requirements. As of 2025:
- A 580+ credit score allows for just 3.5% down.
- Scores between 500–579 require 10% down (and a lender willing to approve).
You can learn more about FHA loans here.
Consider a No-Closing-Cost Mortgage
Closing costs can add thousands to your upfront expenses. Choosing a “no closing cost” mortgage—where the lender covers fees in exchange for a slightly higher interest rate—may be a smart move if:
- You plan to sell within 5–7 years
- You expect to refinance if rates drop
- You want to preserve your cash for moving/repairs
Shop Within Your Comfort Zone
Many buyers are tempted to stretch their budget assuming future income growth. But with economic uncertainty and fluctuating job markets, mortgage experts recommend staying comfortably within your means in 2025. You can always upgrade later once your income increases. Start by exploring homes in your preferred communities here.
Always Shop Around
Even small rate differences can cost—or save—you tens of thousands over the life of your loan. Compare multiple lenders, including credit unions, local banks, and online lenders. Working with a mortgage broker can help you uncover competitive offers you might not find on your own.
Keep Your Rate Shopping Within 14 Days
Your credit score may drop if you have too many inquiries over time. Fortunately, credit bureaus allow a 14-day window where all mortgage inquiries count as a single credit check. This gives you time to gather quotes without damaging your score.
Review Your Loan Estimate Carefully
Lenders must provide a Loan Estimate that outlines your costs. Don’t be fooled by a slightly lower rate from one lender—another lender may offer lower fees, making their loan more affordable overall. Compare all line items before choosing.
Maintain Cash Reserves
In 2025, lenders continue to prioritize borrowers who have strong savings after closing. Many want to see at least two months of mortgage payments remaining in liquid assets. Savings accounts, money markets, and CDs all count toward your reserve requirement and can help you secure a better rate.
If you have questions about buying a home in 2025, financing options, or what to expect in today’s market, we’re here to help. At Ernest Signature Custom Homes, we want you to feel confident and prepared every step of the way.
Drop us a message here or call us at (912) 756-4135. We’re always happy to help you make your next move!
