In the past, there wasn't much to think about when choosing a loan type for buying a home in Rochester. The low property prices made finding a home more challenging than deciding on a loan type. Now, the situation has changed a bit. A family that recently inquired asked whether to go with a fixed-rate or adjustable-rate mortgage, but there are a few things to check before answering that question.

Looking at Rochester's housing prices, the average home value according to Zillow is $252,192, which is a 4.3% increase from the previous year (as of June 30, 2026, Zillow). According to Redfin, the median sale price in July 2026 has risen to around $255,000. The difference in these figures is due to the methods of aggregation and the composition of listings, but in either case, they fall far short of the national benchmark of $832,750 (2026 FHFA conforming loan limit). Simply put, there is rarely a need to consider jumbo loans in Rochester, and most decisions are made between conventional loans and FHA loans.

There are three main factors to check in order. First, the ability to make a down payment. If you can cover 20%, you can start with a conventional loan without PMI, but if not, you can begin with an FHA loan starting at a 3.5% down payment. Second, your credit score. If it's above 580, you can take advantage of FHA's lower down payment requirements, but if it's between 500 and 579, you will need to put down 10%. Third, whether you have military service experience. There is a VA Medical Center in Canandaigua near Rochester, and the Monroe County Veterans Service Agency operates as well, so veterans should consider VA loans. VA loans allow for a 0% down payment and have no PMI, but they do come with a funding fee of 1.25% to 3.3% of the loan amount.

When comparing fixed and adjustable rates, in a market like Rochester where prices are steadily rising, fixed rates offer the advantage of predictable payments for families planning to stay long-term. On the other hand, if you plan to move again in a few years or want to lower your initial payments, you might consider the initial terms of an adjustable-rate mortgage. However, it's best to first decide on the loan program (conventional, FHA, VA) and then choose within that program to avoid confusion.

If you are moving from another state, it's important to note that simply comparing property taxes in New York with those of your previous residence can lead to discrepancies. Families prioritizing school districts should check the GreatSchools ratings and the assigned schools directly before purchasing.

When compared to neighboring Greece or Penfield, the price difference with downtown Rochester becomes more apparent. Suburban towns tend to have a higher proportion of single-family homes, which can lead to slightly higher sale prices than in the city, but they still fall short of the national benchmark. USDA loans are also a viable option in some areas outside of Rochester. They can be started with no down payment, but are only available in designated rural and suburban areas and have income restrictions, so it's important to first check if the address of interest falls within eligible areas.

From an investor's perspective looking for rental income, Rochester's low entry prices may seem attractive, but it's essential to also consider population trends and vacancy rates. There is no guarantee that prices will always rise. Families newly immigrating from Korea may find themselves at a disadvantage with conventional loans due to short credit histories, but in such cases, the lower credit score requirements of FHA loans can help lower the entry barrier. Tax and loan conditions can vary by state and county, so it's advisable to double-check with a professional before finalizing any contracts. This article does not constitute investment or legal advice.