Understanding the Real Costs — and How Hopkins Financial Can Help When Banks Can’t
Buying a home is one of life’s biggest milestones — but for many buyers, qualifying for a traditional mortgage can be the hardest part. Most people start by asking:
“How much money do I need to buy a house?”
The truth is, it depends not only on the home price — but also on the type of loan and the lender you choose.
Conventional Loans: Low Down Payments, High Barriers
Most major banks and conventional lenders advertise attractive programs — sometimes as low as 3% to 5% down. However, these loans come with strict income, credit, and documentation requirements.
To qualify for those low-down-payment loans, you typically need:
- Excellent credit (often 700+ FICO)
- Steady W-2 income and low debt-to-income ratios (under 43%)
- Full income verification and tax returns
- Property types that meet strict underwriting standards
If anything about your situation falls outside those guidelines — maybe you’re self-employed, recently changed jobs, have credit challenges, or the property itself doesn’t fit conventional criteria — that “3% down” loan likely disappears.
When Banks Say No: How Hopkins Financial Steps In
That’s where Hopkins Financial Services comes in.
Since 1984, Hopkins Financial has specialized in private money loans — real-estate-secured financing that helps borrowers who can’t qualify under traditional bank rules.
We focus on asset-based lending — the property’s value and your equity — not just your credit score or income documentation.
Our typical residential loans include:
- Loan Amounts: $40,000 to $1,000,000+
- Loan-to-Value (LTV): Up to about 70% (meaning you bring roughly 30% down or more in equity)
- Interest Rates: Typically 10.75% to 12%+, depending on property and borrower
- No prepayment penalties and straight amortization (no balloon payments)
While that’s a higher rate and larger down payment than banks require, it comes with one critical advantage:
You can actually get your deal done.
The Trade-Off: Cost vs. Opportunity
When you’re buying or refinancing property — especially on a tight deadline or with a unique property — sometimes the extra cost of private money is worth every penny.
Hopkins loans can make sense when:
- You’re self-employed or have complex tax returns
- Your credit has taken a hit
- You’re purchasing an investment or non-conforming property (mobile home on foundation, rural acreage, mixed-use, etc.)
- You need to close in days, not months
- You’re using equity from one property to purchase another
The higher rates and fees are simply the trade-off for speed, flexibility, and approval when traditional lenders say no.
It’s not for everyone — and if you can qualify at a bank, you absolutely should. But if you can’t, Hopkins provides a real path forward instead of a dead end.
Understanding the True Costs of Buying a Home
Whether you work with a bank or a private lender, here’s what to expect financially when purchasing real estate:
- Down Payment: Typically 3%–20% for conventional, 30%+ for Hopkins private loans
- Closing Costs: 2%–5% of purchase price (includes title, escrow, origination, and third-party fees)
- Earnest Money Deposit: 1%–3% of home price
- Prepaid Taxes and Insurance: Often required at closing to fund your escrow account
- Cash Reserves: Lenders like to see at least a few months’ worth of mortgage payments in savings
These costs can add up quickly — but with Hopkins, you’ll know exactly where you stand and what’s needed to make your deal work.
Why Borrowers Choose Hopkins
For over 40 years, Hopkins Financial has funded over $1 billion in private real estate loans across Idaho and the western U.S.
Our clients come to us for one reason: we make things happen when banks can’t.
Whether it’s an owner-occupied home (Idaho only), an investment property, or commercial real estate, we pride ourselves on:
- Quick, local decisions (no corporate underwriting delays)
- Creative loan structures (cross-collateralization, land splits, unique zoning, etc.)
- Real people, not automated rejections
We understand that sometimes the perfect opportunity can’t wait on a committee’s approval.
The Bottom Line
If you can qualify for a low-down-payment, low-rate conventional mortgage — that’s great. But if the bank’s requirements leave you stuck, Hopkins Financial gives you another way forward.
It’s not the cheapest money out there — but it’s often the difference between a deal done and a deal lost.
Ready to explore your options?
Contact Hopkins Financial Services today to learn how private money lending can make your next home or investment purchase possible.
Hopkins Financial Services, Inc.
Meridian, Idaho | Since 1984
www.hopkinsfinancial.com
(208) HOP-KINS / (208) 467-5467
