A little while ago, a customer with veteran status came to me wanting to find a home in Savannah using a VA loan. The ability to start without a down payment is certainly an advantage, but it's not a decision to make without comparing it to other loan options.

According to Redfin, the median home price in Savannah as of May 2026 was $340,000. This number indicates that Savannah is positioned in the middle of the market in Georgia, lower than Atlanta but higher than Augusta or Macon.

Nearby Savannah are Fort Stewart and Hunter Army Airfield, which means the proportion of buyers eligible for VA loans is consistently high. The VA loan limit for Chatham County in 2026 is $832,750, allowing qualified veterans or active-duty members to purchase homes without a down payment and without PMI. The BAH for an E-6 rank at Hunter is around $2,664 per month, which is a factor that can increase purchasing power to about $295,000 with a VA loan. While these conditions are favorable, it's important to consider that a funding fee of 1.25 to 3.3 percent of the loan amount applies.

If a buyer does not qualify for a VA loan, they will likely choose between conventional loans and FHA loans. If their credit score is above 680, they may qualify for a lower rate with a conventional loan, and if they can make a 20 percent down payment, they can avoid PMI. For those with a credit score above 580 but lacking initial funds, an FHA loan with a 3.5 percent down payment may be a more realistic option.

Market conditions should also be taken into account. Savannah has an average listing wait time of 88 days and a 5.6-month inventory, giving buyers more negotiating power compared to other markets in Georgia. In such a market, buyers have relatively ample time to compare loan conditions.

Areas near Savannah, such as Pooler and Richmond Hill, are often mentioned as neighborhoods that align well with school ratings and preferences of military families and Korean households. However, school district boundaries change frequently, so it's advisable to verify the assigned school for a specific address before purchasing.

Georgia does not have high-cost area designations, so Chatham County applies the standard loan limits, and it's uncommon to consider jumbo loans in this price range. Families moving from out of state should also take into account that Georgia's property tax and insurance structures differ from their previous residence.

For investors looking for rental income, Savannah's unique dual demand stands out. Due to its tourist nature, there is a demand for short-term rentals, while there is also a steady demand for long-term rentals targeting military families near the base. However, the difference between peak and off-peak tourist seasons is significant, and short-term rental regulations vary by area, so it's safer to check local ordinances before making any income assumptions.

Families that have just settled from Korea often find themselves with a short credit history, leading them to consider FHA loans before conventional loans. If they want to start with low initial funds without VA eligibility, this route seems to be a realistic choice.

Getting pre-approved can be advantageous in negotiations, but it can be cumbersome to go through the process again if the approval period expires. Closing costs typically range from 2 to 5 percent of the loan amount and should be prepared separately from the down payment.

Since interest rates and fee structures can vary slightly among lenders, it's helpful to obtain quotes from two or three places for comparison. Even with the same program, the actual burden can differ depending on the lender.

Ultimately, in Savannah, it seems logical to first check VA eligibility, and if not eligible, to choose between conventional and FHA loans based on credit score and cash availability. Specific conditions may vary by lender, so this article is not investment or legal advice, and it's recommended to consult a mortgage professional before finalizing any contracts.