An FHA loan is a government-insured mortgage backed by the Federal Housing Administration. It’s designed to help buyers with lower down payments, more flexible credit guidelines, and higher debt ratios compared to some other loan programs.
The minimum down payment is typically 3.5 percent if the borrower meets FHA credit requirements. This is a general guideline and depends on the overall loan profile.
FHA allows lower credit scores than many other loan types. Lenders review the full credit profile, not just the score, including payment history and recent activity.
Yes, in many cases. FHA does not require all collections to be paid off, but the type, balance, and history of the accounts matter.
Yes. FHA generally allows higher debt-to-income ratios than conventional loans, especially when there are compensating factors like stable income or cash reserves.
FHA allows many income types including salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, disability, and VA benefits, as long as they are properly documented.
FHA typically looks for a two-year employment history, but it does not have to be with the same employer. Gaps can be acceptable depending on the reason.
Yes. FHA allows 100 percent of the down payment and closing costs to come from approved gift sources such as family members.
Acceptable gift sources include family members, close friends with a documented relationship, employers, labor unions, charitable organizations, and certain government assistance programs.
Yes. FHA loans require both an upfront mortgage insurance premium and a monthly mortgage insurance payment.
In most cases, FHA mortgage insurance lasts for the life of the loan when the minimum down payment is used. Shorter durations may apply with larger down payments.
Yes. FHA allows purchases of 1- to 4-unit properties as long as the borrower occupies one of the units as their primary residence.
FHA allows single-family homes, approved condominiums, manufactured homes meeting FHA standards, and certain multi-unit properties.
FHA requires the home to be safe, sound, and secure. The appraisal evaluates health, safety, and structural integrity, not cosmetic issues.
Yes, through specialized FHA programs like renovation loans, but standard FHA loans require the property to meet minimum condition standards at closing.
FHA allows borrowers to qualify as soon as one year after Chapter 13 bankruptcy with court approval, and typically two years after Chapter 7, assuming re-established credit.
FHA generally requires a three-year waiting period after foreclosure, deed-in-lieu, or short sale, with some exceptions based on circumstances.
Yes. FHA loans are not limited to first-time buyers. However, FHA is intended for primary residences, and borrowers must meet occupancy requirements.
Yes. FHA allows non-occupant co-borrowers, such as family members, which can help strengthen the loan application.
FHA focuses on the overall risk profile, including credit history, income stability, debt levels, and the property itself, not just one single factor.
A USDA Guaranteed Loan is a mortgage program backed by the U.S. Department of Agriculture that helps eligible buyers purchase homes in designated rural and suburban areas with affordable terms.
Yes. USDA Guaranteed Loans allow 100 percent financing, meaning no down payment is required, as long as the borrower meets eligibility guidelines.
Eligibility is based on property location, household income, and creditworthiness. The home must be in a USDA-eligible area, and household income must fall within USDA limits.
No. Many suburban areas qualify. USDA eligibility often extends into areas just outside major cities, including parts of the New Orleans metro and surrounding parishes.
USDA uses an official property eligibility map to determine whether a home qualifies. Eligibility is based on the property address.
USDA does not publish a strict minimum credit score. Lenders evaluate the full credit profile, including payment history, stability, and overall risk.
USDA allows salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, disability, and certain government benefits, as long as income is stable and documented.
USDA looks at total household income, not just the income of the borrowers on the loan. This includes income from all adult household members, even if they are not on the mortgage.
Income limits vary by county and household size. They are designed to support low- to moderate-income households and change periodically.
USDA loans can allow higher debt ratios depending on credit strength, income stability, and other compensating factors.
Yes. USDA loans require an upfront guarantee fee and a monthly annual fee, which is generally lower than FHA mortgage insurance.
Yes. USDA allows gift funds for closing costs and other eligible expenses, as long as the source is acceptable and properly documented.
Yes, in certain cases. The manufactured home must meet USDA requirements, be permanently affixed, and be located on owned land.
USDA requires the home to be safe, sanitary, and structurally sound. The appraisal focuses on livability and safety, not cosmetic issues.
Yes, USDA Guaranteed Loans may be used for new construction as long as the property meets USDA guidelines and is located in an eligible area.
USDA typically requires a three-year waiting period after Chapter 7 bankruptcy and at least one year of satisfactory repayment in a Chapter 13 plan, depending on circumstances.
USDA generally requires a three-year waiting period after foreclosure, deed-in-lieu, or short sale, assuming credit has been re-established.
Yes. USDA loans are not limited to first-time buyers, but borrowers must meet current eligibility requirements each time.
No. While many first-time buyers use USDA loans, repeat buyers can qualify as long as they meet income and occupancy requirements.
USDA focuses on household income eligibility, credit history, ability to repay, and whether the property meets location and condition guidelines.
A VA home loan is a mortgage benefit available to eligible veterans, active-duty service members, National Guard, Reserves, and some surviving spouses. The loan is backed by the U.S. Department of Veterans Affairs and designed to make homeownership more affordable.
In many cases, no down payment is required. Eligible borrowers can often purchase a home with zero down, as long as the purchase price is within VA guidelines.
The VA does not set a minimum credit score. Lenders review the overall credit profile, including payment history, recent activity, and stability.
No. VA loans do not require monthly mortgage insurance, which can significantly lower the monthly payment compared to other loan programs.
The VA funding fee is a one-time fee paid to help keep the VA loan program running. It can usually be financed into the loan and varies based on service type, down payment, and prior VA use.
Veterans receiving VA disability compensation and certain surviving spouses are typically exempt from paying the VA funding fee.
VA loans allow many income types including salaried, hourly, overtime, bonus, commission, retirement, disability, and VA benefits, as long as the income is stable and documented.
VA places a strong emphasis on residual income, which measures how much money remains after major expenses, rather than relying solely on debt-to-income ratios.
Residual income is the amount of money left over each month after paying housing expenses, debts, taxes, and basic living costs. VA uses this to help ensure long-term affordability.
Yes. VA loans allow gift funds for closing costs and, if applicable, down payment, as long as the source is acceptable and properly documented.
Yes. VA loan entitlement can be reused once a prior VA loan is paid off or entitlement is restored, assuming eligibility requirements are met.
VA loans can be used for single-family homes, approved condominiums, manufactured homes meeting VA standards, and 1–4 unit properties if the borrower occupies one unit as a primary residence.
Yes. VA appraisals ensure the property meets Minimum Property Requirements related to safety, structural integrity, and livability.
VA loans are intended for move-in-ready homes. Major repairs typically must be completed before closing unless using a specialized renovation option.
VA guidelines may allow eligibility two years after Chapter 7 bankruptcy and one year into a Chapter 13 repayment plan, depending on circumstances and credit re-establishment.
VA generally requires a two-year waiting period after foreclosure, deed-in-lieu, or short sale, assuming credit has been re-established.
Yes. VA One-Time-Close construction loans allow eligible borrowers to finance construction and permanent financing into one loan.
Yes. Certain surviving spouses may be eligible for VA loan benefits, particularly if the veteran passed due to a service-related cause or while on active duty.
No. VA loans can be used multiple times and are not limited to first-time buyers, as long as entitlement and occupancy requirements are met.
VA looks at the borrower’s overall financial picture, including income stability, credit history, residual income, and the ability to sustain homeownership long-term.
It’s a single mortgage that finances the land purchase (if needed), the construction of a new home, and the permanent VA mortgage all in one loan and one closing.
Eligible veterans, active duty service members, National Guard and Reserve members, and some surviving spouses can use this loan to build a home.
In many cases, eligible borrowers can finance 100 percent of the land and construction with no down payment, just like a traditional VA purchase loan.
With a VA one-time close loan, you only close once and the loan automatically converts to a permanent VA mortgage when construction is done, eliminating a second approval and closing.
Yes. One-time close construction loans often lock the interest rate at closing and that rate carries into the permanent mortgage once construction is complete.
No. Like other VA loans, VA construction loans do not require monthly mortgage insurance, even with 0% down financing.
Yes. You can build stick-built homes, modular homes, and panelized homes as long as they meet VA and local code requirements.
Yes. You generally must work with a licensed, insured builder familiar with VA construction requirements. Borrowers acting as their own general contractor are rarely accepted.
You’ll need your Certificate of Eligibility (COE), income and credit documentation, detailed home plans, a construction contract, and builder credentials.
Construction funds are released in stages (draws) as the project progresses, with inspections or documentation confirming completed milestones before each draw.
Construction timelines vary, but most projects take several months. Lenders coordinate inspections and draw administration throughout the process.
Yes. The home must meet VA Minimum Property Requirements (MPRs) for safety, structural soundness, and livability at completion.
Yes. You can use the loan to build on land you already own or land you plan to purchase with the loan.
The VA funding fee may be financed into the loan, but other closing costs generally must be paid at closing.
Benefits include one closing, locked-in rate, no refinancing later, no mortgage insurance, and streamlined paperwork compared to two separate loans.
Yes. The borrower must still meet standard VA loan underwriting requirements for income, credit, residual income, and ability to repay.
Once the construction loan converts to permanent financing, you may be eligible to refinance later under VA refinance programs if you meet seasoning requirements.
Yes. An appraisal is based on project plans and projected finished value before construction begins.
Seller concessions are allowed on VA loans, but total credits are limited and negotiated within VA guidelines.
After final inspections and issuance of a certificate of occupancy, the loan automatically converts to the permanent VA mortgage with one payment structure and no second closing.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency like FHA or VA. It follows guidelines set by Fannie Mae and Freddie Mac and is one of the most common loan types used today.
Yes, but it can be as low as 3 percent for qualified buyers. Down payment requirements vary based on credit, income, and the loan program.
Conventional loans typically require higher credit scores than FHA or USDA loans. Lenders review the full credit profile, not just the score.
Yes. Many conventional programs are designed specifically for first-time buyers and offer low down payment options.
Mortgage insurance is required when the down payment is less than 20 percent. Unlike FHA, conventional mortgage insurance can usually be removed later.
Mortgage insurance can typically be removed once the loan balance reaches 80 percent of the home’s value, assuming payment history and other requirements are met.
Debt-to-income ratios compare monthly debts to gross monthly income. Conventional loans usually have stricter limits than FHA, but strong compensating factors may help.
Conventional loans allow salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, and other stable income sources with proper documentation.
Fannie Mae typically looks for a two-year employment history, but it does not have to be with the same employer. Career changes can be acceptable.
Yes. Self-employed borrowers usually need to show consistent income through tax returns and business documentation. Income trends are closely reviewed.
Yes. Gift funds are allowed, especially for primary residences. The amount allowed depends on the down payment size and the borrower’s own contribution.
Yes, but the condominium project must meet Fannie Mae approval guidelines related to finances, insurance, and ownership structure.
Conventional loans can be used for single-family homes, condominiums, townhomes, manufactured homes meeting guidelines, and 1–4 unit properties.
Yes. Non-occupant co-borrowers are allowed in certain situations, especially for primary residences.
Fannie Mae typically requires four years after Chapter 7 bankruptcy and two years after Chapter 13 discharge, depending on circumstances.
The standard waiting period is seven years after foreclosure, deed-in-lieu, or short sale, with limited exceptions.
No. Conventional loans can be used for primary residences, second homes, and investment properties, though requirements vary.
Assets are reviewed to ensure borrowers have funds for down payment, closing costs, and sometimes reserves depending on the loan type.
Fannie Mae focuses on credit history, income stability, debt levels, assets, and overall risk, not just one single factor.
Conventional loans can be a better option when a borrower has stronger credit, higher down payment funds, or wants mortgage insurance that can be removed later.
A Freddie Mac loan is a conventional mortgage that follows guidelines established by Freddie Mac. These loans are widely used for primary homes, second homes, and investment properties.
Down payments can be as low as 3 percent for qualified first-time homebuyers. Requirements vary based on credit, income, and property type.
No. While many programs are designed to help first-time buyers, repeat buyers can also qualify under Freddie Mac guidelines.
Freddie Mac does not publish a single minimum score. Lenders review the entire credit profile, including payment history, utilization, and stability.
Yes, when the down payment is less than 20 percent. Unlike FHA, conventional mortgage insurance is not permanent.
Mortgage insurance can typically be canceled once the loan balance reaches 80 percent of the home’s value, assuming the borrower meets payment history and guideline requirements.
Debt-to-income ratios compare monthly debt obligations to gross monthly income. Freddie Mac loans generally have tighter limits than FHA, but strong compensating factors can help.
Freddie Mac allows salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, and other stable income sources with proper documentation.
Freddie Mac typically looks for a two-year employment history, though it does not have to be with the same employer. Career changes may be acceptable.
Yes. Self-employed borrowers usually need consistent income supported by tax returns and business documentation. Income trends are carefully reviewed.
Yes. Gift funds are permitted for primary residences and may be used for down payment and closing costs, depending on the borrower’s contribution and transaction structure.
Freddie Mac loans may be used for single-family homes, townhomes, condominiums, manufactured homes that meet guidelines, and 1–4 unit properties.
Yes, but the condo project must meet Freddie Mac eligibility standards related to finances, insurance, and ownership structure.
Yes. Non-occupant co-borrowers may be allowed on certain primary residence transactions.
Freddie Mac generally requires four years after Chapter 7 bankruptcy and two years after Chapter 13 discharge, depending on the circumstances.
The standard waiting period is seven years after foreclosure, deed-in-lieu, or short sale, with limited exceptions.
Yes. Freddie Mac allows financing for investment properties, though down payment and reserve requirements are higher than for primary residences.
Yes. Second homes are allowed, provided the property meets occupancy and usage guidelines.
Assets are reviewed to verify funds for down payment, closing costs, and required reserves, depending on loan type and occupancy.
Freddie Mac evaluates the borrower’s credit profile, income stability, debt levels, assets, and overall risk profile, not just one single factor.
A reverse mortgage allows homeowners age 62 or older to convert part of their home equity into cash without making monthly mortgage payments, as long as they live in the home and meet loan requirements.
Yes. You retain ownership of your home. The reverse mortgage is a lien, just like a traditional mortgage.
No. Monthly mortgage payments are not required. However, borrowers must continue to pay property taxes, homeowners insurance, and maintain the home.
At least 62 years old. If there are multiple borrowers, the youngest borrower must meet the age requirement.
Funds can be received as a lump sum, monthly payments, a line of credit, or a combination, depending on the borrower’s needs and the loan structure.
No. Many homeowners use reverse mortgages as a retirement planning tool, to supplement income, eliminate monthly mortgage payments, or create a financial safety net.
When the last borrower leaves the home permanently, the loan becomes due. Heirs can sell the home, refinance, or pay off the balance. They are never required to pay more than the home’s value.
Yes. Heirs can keep the home by paying off the loan balance, usually through refinancing or other funds.
No. Reverse mortgages are non-recourse loans, meaning neither you nor your heirs can owe more than the home’s value at the time of repayment.
Eligible properties include single-family homes, FHA-approved condominiums, certain manufactured homes, and 1–4 unit properties if one unit is owner-occupied.
Reverse mortgages are more flexible than traditional loans. Credit is reviewed primarily to ensure the borrower can meet ongoing obligations like taxes and insurance.
Yes. Existing mortgages can often be paid off with the reverse mortgage proceeds, eliminating monthly mortgage payments.
No. Reverse mortgage proceeds are not considered taxable income and generally do not affect Social Security or Medicare benefits.
Yes. Reverse mortgages include upfront and annual mortgage insurance premiums that help protect borrowers and heirs.
HUD requires independent third-party counseling to ensure borrowers fully understand how reverse mortgages work before moving forward.
Yes. A Reverse Mortgage for Purchase allows eligible buyers to purchase a home using a reverse mortgage, reducing or eliminating monthly payments.
If the home is no longer your primary residence for more than a certain period, the loan may become due.
Yes. In some cases, borrowers may refinance to access additional equity or adjust loan terms, subject to guidelines.
Like any financial product, reverse mortgages are not one-size-fits-all. It’s important to understand costs, obligations, and long-term plans before moving forward.
A conversation with a knowledgeable advisor can help determine whether a reverse mortgage aligns with your financial goals, retirement plans, and family considerations.
A DSCR loan is a real estate investor mortgage that qualifies the loan based primarily on the property’s rental income, not the borrower’s personal income.
DSCR stands for Debt Service Coverage Ratio. It measures whether the property’s income can cover the monthly mortgage payment.
DSCR compares monthly rental income to the monthly housing payment. A ratio of 1.00 means the property breaks even, while higher ratios indicate stronger cash flow.
In most cases, no. DSCR loans typically do not require tax returns, pay stubs, or W-2s because qualification is based on the property’s income.
Many DSCR programs allow ratios around 1.00 or higher, and some programs may allow slightly lower ratios depending on the overall loan structure.
No. DSCR loans can be used by first-time investors as well as experienced investors, depending on the lender and program.
DSCR loans are commonly used for:
Yes, many DSCR programs allow short-term rentals, using market rent or short-term rental analysis, depending on the program.
DSCR loans generally require moderate to strong credit, but guidelines are often more flexible than traditional conventional investment loans.
DSCR loans typically require a larger down payment than owner-occupied loans. The exact amount depends on credit, property type, and DSCR ratio.
No. DSCR loans do not require mortgage insurance, even with lower DSCR ratios.
Yes. DSCR loans commonly allow properties to be owned in an LLC or business entity, which is popular with real estate investors.
Many DSCR programs do not cap the number of financed properties, making them attractive for portfolio investors.
Yes. DSCR loans can be used for rate-and-term refinances and cash-out refinances, depending on equity and program guidelines.
Rental income is usually based on:
No. DSCR loans can be structured for both long-term and short-term rental strategies, depending on the lender.
DSCR loans often carry higher rates than owner-occupied loans because they are designed for investment properties and rely on rental income.
No. DSCR loans are typically considered non-QM investment loans, meaning they don’t follow traditional income documentation rules.
Key benefits include:
DSCR loans are ideal for:
A bank statement loan is a mortgage designed for self-employed borrowers that qualifies income using bank deposits instead of traditional tax returns.
These loans are ideal for:
Lenders review 12 or 24 months of bank statements and use qualifying deposits to estimate monthly income, often applying an expense factor.
In most cases, no. Bank statement loans typically do not require personal or business tax returns for income qualification.
Yes. Depending on the program, lenders may allow personal bank statements, business bank statements, or both.
Bank statement loans generally require moderate to strong credit, but guidelines are often more flexible than traditional conventional loans.
Bank statement loans usually require a larger down payment than conventional owner-occupied loans. Exact amounts depend on credit and overall loan structure.
No. Bank statement loans can be used for primary residences, second homes, and investment properties, depending on the program.
No. Bank statement loans do not require mortgage insurance.
Yes. Gift funds may be allowed for down payment and closing costs, depending on the program and documentation.
Qualifying deposits generally include:
Non-income deposits, such as transfers or refunds, are usually excluded.
An expense factor is a percentage used to estimate business expenses and determine usable income from deposits when tax returns are not used.
Many programs require at least two years of self-employment history, though some may allow shorter timeframes depending on stability.
Yes. Lenders typically average income over the review period to account for seasonal or variable income.
Yes. Bank statement loans fall under the Non-QM category, meaning they don’t follow traditional qualified mortgage income documentation rules.
Yes. These loans can be used for rate-and-term refinances or cash-out refinances, depending on equity and guidelines.
Bank statement loans often carry higher interest rates than conventional loans due to the alternative income verification.
Key benefits include:
Common issues include:
A good candidate is a self-employed borrower with strong cash flow, solid credit, and sufficient assets who doesn’t qualify under traditional income documentation.
A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. These loans are used for higher-priced homes.
You typically need a jumbo loan when the loan amount is above the conforming limit for the county where the property is located.
Not necessarily. In many markets, including parts of Louisiana and Texas, a standard single-family home can require a jumbo loan due to home prices.
Jumbo loans generally require strong credit, often higher than conventional loans, but lenders review the full credit profile, not just one score.
Jumbo loans typically require a larger down payment than conforming loans. The exact amount depends on credit, income, and overall financial strength.
Most jumbo loans do not require mortgage insurance, even with lower down payments, depending on the program structure.
Jumbo loan rates can be similar to or higher than conventional rates, depending on market conditions, credit strength, and loan structure.
Many jumbo loans require full income documentation, such as W-2s or tax returns, though alternative documentation options may be available for certain borrowers.
Yes. Self-employed borrowers can qualify, often using tax returns or alternative documentation programs depending on income complexity.
Jumbo loans typically have stricter debt-to-income guidelines than conforming loans, but strong compensating factors may help.
Yes. Jumbo loans often require additional cash reserves, sometimes several months of mortgage payments, depending on the loan amount and borrower profile.
Gift funds may be allowed in some jumbo programs, but borrowers are often required to contribute a portion of their own funds.
Jumbo loans can be used for:
Yes, but the condominium project must meet lender-specific guidelines, which may be more restrictive than conventional condo rules.
Lenders typically look for a two-year employment history, though stable career changes may be acceptable.
Yes. Jumbo loans can be used for rate-and-term refinances and cash-out refinances, subject to equity and guidelines.
They can be more detailed due to higher risk, but borrowers with strong credit, income, and assets often qualify smoothly.
Jumbo underwriting focuses heavily on risk management, including detailed income review, asset verification, and reserve analysis.
Yes. Many jumbo programs offer adjustable-rate options, which may appeal to borrowers with shorter-term plans.
A good candidate is a borrower with strong credit, stable income, solid assets, and long-term financial stability purchasing or refinancing a higher-value home.
A HELOC, or Home Equity Line of Credit, is a revolving line of credit secured by your home that lets you borrow against your available equity as needed.
A home equity loan is a lump-sum loan secured by your home equity with a fixed interest rate and fixed monthly payments.
A HELOC works like a credit card with a limit you can draw from, while a home equity loan gives you all the funds at once with a fixed payment schedule.
Most lenders look for at least 15–20 percent equity remaining in the home after the loan is taken, depending on credit and overall risk.
Common uses include:
Home equity loans usually have fixed rates, while HELOCs typically have adjustable rates that can change over time.
With a HELOC, no. You only borrow what you need. With a home equity loan, yes, the full amount is disbursed at closing.
Yes. Home equity loans require monthly payments right away. HELOCs usually have a draw period where payments may be interest-only, followed by a repayment period.
Many HELOCs have a draw period of 5 to 10 years, followed by a repayment period where principal and interest are due.
No. HELOCs and home equity loans do not require mortgage insurance.
Lenders usually prefer good to strong credit, but they review the full credit profile, not just the score.
Income is typically verified using traditional documentation, such as pay stubs, W-2s, or tax returns, depending on the loan type and borrower profile.
Yes, but they are often lower than a first mortgage. Some HELOCs may offer reduced or no-closing-cost options.
Yes. HELOCs and home equity loans are often second liens, meaning they sit behind your primary mortgage.
Some HELOC programs allow borrowers to lock portions of the balance into fixed-rate segments.
Interest may be tax-deductible if the funds are used to improve the home, but borrowers should consult a tax professional.
Yes. These loans can often be refinanced or paid off through refinancing the primary mortgage.
A decline in value may limit future access to equity but typically does not change the existing loan terms.
Because your home is collateral, failure to repay could result in foreclosure. Home equity lending should be used responsibly.
A good candidate is a homeowner with strong equity, stable income, good credit, and a clear plan for using the funds.
Non-QM stands for Non-Qualified Mortgage. These loans don’t follow traditional government or agency income documentation rules but are still fully documented and underwritten responsibly.
No. Non-QM loans are not subprime. They are designed for borrowers with unique income, credit, or asset situations who don’t fit standard guidelines.
Non-QM loans are commonly used by:
Yes, but documentation can be alternative, such as bank statements, asset verification, or rental income, instead of tax returns.
Common Non-QM loan types include:
No. Non-QM loans can be used for primary homes, second homes, and investment properties, depending on the program.
Non-QM loans often allow more flexible credit requirements, but lenders still review the full credit profile and payment history.
Often, yes. Non-QM loans typically require higher down payments to offset the alternative documentation used.
No. Non-QM loans do not require mortgage insurance, even with lower down payments.
Rates are usually higher than traditional loans, reflecting the flexibility and alternative documentation, but pricing depends on overall borrower strength.
In many cases, yes. Non-QM programs often allow shorter waiting periods after credit events compared to conventional loans.
Some Non-QM programs offer interest-only options, which can lower initial payments for certain borrowers.
Gift funds may be allowed, depending on the program and borrower contribution requirements.
Yes. Non-QM loans must still comply with Ability-to-Repay rules and federal lending regulations.
Often, yes. Non-QM loans are commonly used when tax returns don’t accurately reflect cash flow due to business write-offs.
Yes. Many programs require additional reserves, depending on loan size, credit profile, and property type.
Yes. Non-QM loans can be used for rate-and-term refinances and cash-out refinances, subject to equity and guidelines.
They can be, but not always. Some borrowers use Non-QM loans short-term, while others keep them long-term based on financial strategy.
Common issues include:
A good candidate is a borrower with strong overall finances, sufficient assets, and a legitimate reason traditional loans don’t fit their situation.
The CFPB is a federal agency that protects consumers by ensuring mortgage lenders follow fair lending laws, provide clear disclosures, and treat borrowers honestly.
A Loan Estimate is a standardized document that outlines the projected loan terms, interest rate, monthly payment, and closing costs, helping borrowers compare offers.
You typically receive a Loan Estimate within three business days after applying for a mortgage and providing basic information.
A Closing Disclosure is the final document that shows the exact loan terms and costs. It must be provided at least three business days before closing.
Some terms can change, but major changes require a revised disclosure. The CFPB requires transparency so borrowers are not surprised at closing.
The Ability-to-Repay rule requires lenders to reasonably verify that borrowers can afford their mortgage payments based on income, debts, and other factors.
A Qualified Mortgage meets certain CFPB standards designed to help ensure loans are sustainable and appropriately underwritten.
The CFPB enforces laws against discrimination, deceptive practices, and unfair fees, and requires clear communication throughout the mortgage process.
No. Many fees are regulated or limited, and lenders must clearly disclose all costs in advance so borrowers can review and question them.
Borrowers should ask questions before signing. CFPB rules encourage lenders to explain documents clearly and provide time for review.
Yes. The CFPB encourages borrowers to compare loan estimates from multiple lenders to find the best overall terms.
Yes. Adjustable-rate mortgages must include disclosures explaining how and when the rate can change and how it affects payments.
Mortgage servicing includes collecting payments, managing escrow accounts, handling customer service, and addressing payment issues after closing.
Borrowers should contact their loan servicer immediately. CFPB rules require servicers to explain available loss mitigation options.
No. Federal rules provide protections and timelines before foreclosure, and lenders must follow specific procedures.
An escrow account collects funds for property taxes and homeowners insurance to ensure those bills are paid on time.
Most mortgages allow early payoff, but borrowers should check whether prepayment penalties apply, which must be disclosed upfront.
Borrowers have the right to submit a written request or complaint, and servicers must investigate and respond within required timeframes.
Yes. Consumers can submit complaints directly to the CFPB if they believe a lender or servicer acted unfairly or improperly.
The CFPB provides education, tools, and protections designed to help first-time buyers understand loans, avoid surprises, and make informed decisions.
The 2.75% broker fee is a negotiated commission that the lender pays us for bringing the loan to them, regardless of the loan size. It is not directly paid by the borrower.
This compensation is pre-negotiated with the lender because the lender pays the broker compensation.
The only lender-paid compensation we receive is the 2.75% from the lender. There is no yield spread premium.
Each lender has predetermined pricing tied to their interest rates. Using the same lender-paid compensation structure, one lender may offer a par rate of 6.375% while another may offer 5.99%. Par means there is no cost or charge to the borrower for that particular interest rate.
In general, no. This is how mortgage brokers are compensated.
Interest rates fluctuate daily based on market conditions and depend on the loan type, credit profile, loan amount, and other factors. Rates can typically be locked for 15, 30, 45, or 60 days. The longer the lock period, the higher the cost to lock. Once a purchase contract is in place, we review current pricing and commonly lock for 30 days to help protect against increases.
Yes. Interest rates can be reduced by paying discount points. There is a limit to how much can be contributed toward buying down the rate. When seller concessions are available, one strategy is to use those concessions to help reduce the interest rate. This is discussed before submitting an offer.
The total monthly payment consists of principal, interest, taxes, and insurance. Interest rates play a major role in the mortgage payment, but taxes and insurance are also important components that must be considered.
FHA, VA, USDA, and Conventional loans do not have prepayment penalties. Some non-qualifying mortgage products may include them.
If the loan does not close, you are responsible for the initial credit report fee and the appraisal fee if it has been ordered. A home inspection fee may also apply if you choose to complete one, though it is not mandatory.
Non-refundable fees typically include the appraisal and credit report. These costs are set by third-party vendors and vary depending on the loan type and vendor pricing.
Yes. We make it a priority to keep our homebuyers informed throughout the mortgage process.
You may choose the title company that handles the legal aspects of closing. You may also shop for your own homeowner and flood insurance providers.
Most loans close in less than 30 days. Occasionally, delays occur outside of our control, such as required property repairs. In those cases, the purchase contract can be extended with agreement from all parties, and the loan timeline adjusts accordingly.
If the timeline extends, a contract extension would need to be signed. A new Closing Disclosure would also be issued with the updated closing date. Additional fees may apply if a rate lock extension is required.
A typical closing timeframe is less than 30 days, depending on documentation, appraisal timing, and contract conditions.
Your primary points of contact will be your loan officer and processor. Updates are provided throughout the process via email, text messages, and phone calls. You will always know where you stand in the process as part of our Ultimate Mortgage Loan Experience.
If there is a material change, the lender will notify you by email. We will also notify you directly as soon as the change occurs.
As a mortgage broker, we work with multiple wholesale lenders. We take one application and shop it among lenders to determine which offers the best terms based on your goals and qualifications.