Frequently Asked Questions

FHA- 3.5% of purchase price for 580+ FICO. 10% for 500-579 FICO

Conventional- 3% for first time buyers 5% for all others

USDA- 0%

VA- 0%

Construction- 0% for VA, 3% for conventional first time buyers 5% for conventional non-first time buyers

DSCR- 15%

FHA- 500

Conventional- 620

USDA- 640

VA- No minimum

Non-QM- Varies

No. In addition to your down payment, you will also need funds for closing costs. Closing costs are things like loan charges, homeowners insurance, property taxes, title fees, prepaid interest, etc. The seller can cover all or part of your closing costs. 

There are down payment assistance programs and grants to help cover your down payment for qualified candidates.

Earnest money deposit, property inspection, appraisal are often paid prior to closing. Earnest money deposit and appraisal can be credited to you at closing, kinda like a pre-payment.

Medical collections are omitted from your application during the lending process. These collections will hurt your credit score, but lenders don't put any weight on the collection itself.

No! It is best to shop around for the best rates and terms. Each lender will have different rates, fees and programs. 

A discount point is the COST for the interest rate selected. This is charged to you. It increases your cost to close. 

A lender credit is a credit given to you for the interest rate selected. This is not a charge. It reduces your cost to close.