FAQ's
FREQUENTLY ASKED QUESTIONS
VA Mortgages
No, one of the key benefits of a VA mortgage is that it allows eligible Veterans and service members to buy a home with no down payment.
While VA loans don’t require a down payment, you will still need to cover closing costs, including appraisal fees, title insurance, and other related expenses. However, the VA limits how much you can be charged for these costs.
No, VA mortgages are intended for primary residences only. You must live in the home as your primary residence, although you can use it to buy a multi-unit property if you live in one of the units.
Your lender can quickly obtain the Certificate of Eligibility (COE) on your behalf, ensuring you meet the VA’s eligibility requirements without any extra steps.
Yes, most VA loans require a one-time funding fee, which helps keep the program running. The amount varies based on factors like your down payment and whether you’ve used a VA loan. Some Veterans may be exempt from this fee.
FREQUENTLY ASKED QUESTIONS
Conventional Mortgages
To qualify for the best interest rates on a conventional mortgage, you typically need a credit score of 740 or higher. However, you can still get a conventional loan with a score as low as 620, though the rates may be higher.
You must make at least a 20% down payment to avoid paying private mortgage insurance (PMI) on a conventional loan. PMI can add to your monthly mortgage costs until you reach 20% equity in your home.
Conventional loans generally offer more flexible terms, the potential for lower monthly payments, and no upfront mortgage insurance fees. Additionally, you can cancel PMI once you reach 20% equity, reducing your long-term costs.
Yes, self-employed borrowers can qualify for a conventional mortgage. You’ll need to provide additional documentation, like tax returns and possibly a profit-and-loss statement, to verify your income, but your lender will guide you through the process.
The maximum loan amount for a conventional mortgage is determined by the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2024, these limits are $766,550 for most areas and up to $1,149,825 in high-cost areas.
FREQUENTLY ASKED QUESTIONS
FHA Mortgages
Yes, FHA mortgages are specifically designed to help borrowers with lower credit scores or limited credit history. You can qualify with a credit score as low as 580 with a 3.5% down payment, or even 550 if you can put down 10%.
The minimum down payment for an FHA loan is 3.5% of the home’s purchase price if your credit score is 580 or higher. If your score is between 500 and 579, you must put down at least 10%.
Yes, the FHA offers a 203(k) loan program specifically for purchasing and renovating a fixer-upper. This program allows you to finance both the purchase and the cost of repairs with a single loan, making the process easier to manage.
Yes, FHA loans require an upfront mortgage insurance premium (MIP) and an annual MIP, paid monthly. The upfront MIP can be rolled into your loan amount, and the annual MIP is based on factors like your loan amount and loan-to-value ratio.
FHA loans can be used to purchase single-family homes, approved condos, manufactured homes, and even multi-unit properties if you live in one of the units. Your lender can help confirm if your property is eligible.
