Understanding Your Mortgage Options: Cash Offers, Conventional, FHA, VA, and USDA Loans Explained
Why Mortgage Options Matter
For many homebuyers in La Crosse, Winona, Houston County, and across the Driftless Region, financing is one of the biggest questions in the home-buying process. The type of loan you choose—or whether you make a cash offer—can have a major impact on your monthly payments, closing costs, and even how competitive your offer is in today’s real estate market.
But let’s be honest: mortgage terminology can feel overwhelming. FHA, VA, USDA, Conventional—what does it all mean? And how do you know what’s right for you?
Here’s a straightforward guide to the most common mortgage options, written in plain language, so you can feel more confident as you begin your home search.
What Is a Cash Offer?
A cash offer means the buyer is paying for the home without taking out a mortgage. This doesn’t necessarily mean someone has a suitcase of money—it simply means the buyer has funds available in savings, investments, or from the sale of another property to purchase the home outright.
Benefits of a cash offer:
-
Faster closings with fewer contingencies.
-
No mortgage approval or appraisal delays.
-
Often more attractive to sellers in competitive markets.
Challenges:
-
Not everyone has this option.
-
Buyers tie up a lot of their liquid assets.
For sellers, cash offers can feel like a sure thing. For buyers, it can give you an edge—but most people will still use financing, which is where loan types come into play.
Conventional Loans
A conventional loan is the most common type of mortgage and is not backed by a government agency. Instead, it’s offered by banks, credit unions, or mortgage companies.
Key features:
-
Typically requires a credit score of at least 620.
-
Down payments can range from as little as 3% to 20% or more.
-
Private Mortgage Insurance (PMI) is required if you put down less than 20%.
Who it’s best for:
Buyers with steady income, decent credit, and some savings for a down payment. Conventional loans offer flexibility, and once you reach 20% equity, you can eliminate PMI and reduce your monthly payment.
FHA Loans
An FHA loan is backed by the Federal Housing Administration and is designed to help first-time buyers and those with lower credit scores.
Key features:
-
Down payments as low as 3.5%.
-
Credit scores as low as 580 may qualify.
-
More forgiving debt-to-income ratios.
Things to consider:
FHA loans require both an upfront mortgage insurance premium and monthly mortgage insurance, which can add to long-term costs. However, they make homeownership possible for many who might not qualify for a conventional loan.
Who it’s best for:
First-time buyers or buyers with less-than-perfect credit who need a more accessible path to homeownership.
VA Loans
A VA loan is available to eligible veterans, active-duty service members, and certain surviving spouses through the U.S. Department of Veterans Affairs.
Key features:
-
No down payment required.
-
No private mortgage insurance (PMI).
-
Competitive interest rates.
-
One-time VA funding fee (which can often be rolled into the loan).
Who it’s best for:
Military service members, veterans, or spouses who want to take advantage of one of the most powerful benefits available. For those who qualify, VA loans often make homeownership more affordable than any other option.
USDA Loans
A USDA loan is backed by the U.S. Department of Agriculture and is designed to help buyers in rural and some suburban areas.
Key features:
-
No down payment required.
-
Competitive interest rates.
-
Income limits apply (based on area and household size).
-
The home must be in an eligible area.
Who it’s best for:
Buyers who meet income requirements and are purchasing in eligible “rural” zones—which often include smaller towns and communities in the Driftless Region. For many families, USDA loans are a great way to buy with little money upfront.
Choosing the Right Mortgage Option
Every buyer’s situation is unique. What works best for one family may not be the right fit for another. That’s where professional guidance makes all the difference.
Here are a few factors to consider:
-
Credit score: Higher scores open the door to conventional loans, while FHA loans work better for lower scores.
-
Savings: A large down payment can reduce costs, but low or no down payment programs may help you get into a home sooner.
-
Location: If you’re buying in a rural area, USDA might be a great fit.
-
Service history: Veterans should always explore VA loan benefits.
-
Competition: In hot markets, cash or conventional offers are often more attractive to sellers.
How Julie Delap Helps Homebuyers Decide
As a local real estate professional, Julie knows that mortgage options are not one-size-fits-all. She works closely with trusted lenders in La Crosse, Winona, and Houston County to connect clients with the right financing. Julie takes the time to explain the differences, answer questions, and make sure buyers feel confident before making one of the biggest financial commitments of their lives.
Her role goes beyond finding the right home—she helps buyers understand how each financing option will impact their monthly payments, competitiveness, and long-term financial health.
Buying a home is exciting, but choosing the right way to finance it is just as important as finding the perfect property. Whether you’re making a cash offer, using a conventional mortgage, or exploring FHA, VA, or USDA loans, knowing your options is the first step toward making a smart decision.
With Julie Delap’s guidance, you’ll have a trusted partner who can connect you with local lenders, explain your options, and help you choose the path that best fits your goals. Homeownership doesn’t have to be confusing—with the right support, it can be empowering.
Julie maintain's a list of reputable and qualified lenders throughout the states of Wisconsin and Minnesota; Contact Julie today to start the process of choosing how to finance the purchase of your dream home.
