Minimum Down Payment For Various Mortgages…

 The most common question I get from borrowers is “How much will I have to put down to get a mortgage?”

Here are your minimum down payment options on the loan products currently available in the market place.

Loan Programs…

VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can qualify for it.

USDA: No down payment necessary. Low monthly MI. Mainly for rural areas or outlying suburbs. Has geographic and income restrictions.

FHA: The minimum down payment is 3.5%. Great rates, has up front and monthly mortgage insurance.

Conventional: You will need 5% down for Conventional loans.

The bottom line:

1) If you have less than 5% to put down VA and USDA are best if you qualify for them. Otherwise FHA is a wonderful loan program – very friendly to the borrower.

2) If you have 5% or more to put down you can get a Conventional loan, and you will have multiple loan choices.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

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Get A Rate Quote Here.

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When You Don’t Have To Remove Disputes From Your Credit…

You may have been told by your loan officer that you have to remove the disputes from your credit before they can underwrite your loan.

For Conventional loans there is really no way around this. You will have to remove them.

However, for FHA loans you don’t necessarily have to remove them.

This is true for manually underwritten FHA loans.

So, if you are getting an FHA loan, and your loan office wants to remove the disputes. Ask your loan officer to have the file manually underwritten.

On a manually underwritten loan the underwriter can underwrite the loan “around” the disputes. …Ignore them in other words.

Your lender may have their own “overlay” rules to remove the disputes even on manual loans. If so, you can change lenders to someone that wouldn’t do that.

…like me! Ha!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

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How To Use Foster Care Income To Get A Mortgage…

If you receive money from the State or a County sponsored organization for providing foster care for children you can use this money as income to get a mortgage.

Foster care income is considered acceptable stable income as long as the borrower has a 2 year history of providing foster care services.

To prove this income we would need…

• Letters from the organizations providing the income.

• Copies of the borrower’s signed federal income tax returns that were filed with the IRS, or

• Copies of the borrower’s deposit slips or bank statements that confirm the regular deposit of the payments.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts