This is part of an ongoing series that addresses common questions from home buyers. Today we have a two-part question: How does the down payment affect private mortgage insurance or PMI, and how much do I have to put down to avoid paying PMI? The short answer: If you make a down payment below 20% when […]
How Do Down Payment Assistance Programs Work?
This is part of an ongoing series that answers frequently asked questions from home buyers. Today’s question is: How do mortgage down payment assistance programs work? Before we get to the logistical details, let’s start with a basic definition. What is a down payment assistance program, exactly? What Is a Down Payment Assistance Program? These […]
Top 10 Things First-Time Home Buyers Should Know in 2018
A lot has changed in the mortgage industry and real estate market over the last couple of years. So we thought it was time to create an updated guide for first-time buyers pursuing the goal of homeownership in 2018. Here are 10 things a first-time home buyer should know in 2018. Top 10 Things First-Time […]
Maximum FHA Debt-to-Income Ratio Requirements in 2017
The debt-to-income (DTI) ratio limit for an FHA loan in 2017 is 43%, for most borrowers. In some cases, home buyers using the FHA loan program can have up to 50% debt-to-income, at a maximum. A higher level of debt might be allowed if there are certain “compensating factors,” such as a minimum increase in […]
How Easy Is It to Get a Mortgage Loan These Days, in 2017?
This is part of an ongoing series in which we answer common questions among first-time home buyers. Today’s question is: How easy is it to get approved for a mortgage loan these days? While it’s not necessarily “easy” to get approved for a mortgage loan today, it has gotten a bit easier over the last […]
How Much Debt Can I Have and Still Get a Mortgage Loan?
This is part of an ongoing series that addresses frequently asked questions from home buyers. Today’s question is: How much debt can you have and still get a mortgage loan? The short answer: Debt-to-income ratios, as they are known within the mortgage industry, can vary from one loan program to the next. But these days, […]
Minimum Credit Score for First-Time Home Buyers in 2017
This is part of a new series in which we answered frequently asked questions from first-time buyers across the U.S. Today’s question comes from Rasheeda in Lansing, who asks: “What is the minimum credit score for a first-time home buyer 2017?” Actually, there is no minimum credit score that applies to all first-time buyers across […]
How a 15-Year Mortgage Loan Works, With Pros and Cons
How does a 15-year mortgage loan work? What are the pros and cons of using a 15-year fixed home loan, when compared to the longer 30-year option? These are some of the most common questions home buyers have about this particular mortgage product. The following guide will help you understand how a 15-year loan works, […]
Best Home Loans for First-Time Buyers With No Down Payment
This blog post answers a question Tina in New Jersey, who asked: “What are the best types of home loans for first-time buyers with no down payment?” The first thing to understand is that first-time home buyers with no down payment money do, in fact, have some options. For example, most of the mortgage programs […]
What if You Put Down Less Than 20% on a Home Purchase?
This is part of an ongoing series in which we answer frequently asked questions among home buyers. Today’s question is: What happens if you put down less than 20% when buying a home? The short answer is that you will probably have to pay for private mortgage insurance, if you put less than 20% down […]