Loan FAQ Library

Residential

What is an FHA loan and who qualifies?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, designed to help buyers with lower credit scores or smaller down payments. You can qualif...

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What is a VA loan and who is eligible?

A VA loan is a mortgage benefit for eligible veterans, active-duty service members, and surviving spouses, guaranteed by the Department of Veterans Affairs. VA loans offer zero dow...

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What is a USDA Rural Development loan?

A USDA loan is a zero-down-payment mortgage backed by the U.S. Department of Agriculture for buyers in eligible rural and suburban areas. There are two main programs: the Guarantee...

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What is a conventional loan?

A conventional loan is a mortgage not insured or guaranteed by a federal government agency — unlike FHA, VA, or USDA loans. Conventional loans follow guidelines set by Fannie Mae...

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What minimum credit score do I need for a home mortgage?

Minimum credit score requirements vary by loan type. FHA loans accept scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no official minimum but most lende...

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How long does the home mortgage approval process take?

The mortgage approval process typically takes 30 to 60 days from application to closing, though it can be faster or slower depending on loan type, lender, and borrower circumstance...

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What is a home appraisal and why is it required?

A home appraisal is an independent assessment of a property's market value conducted by a licensed appraiser. Lenders require appraisals to ensure they are not lending more than th...

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What is title insurance and do I need it?

Title insurance protects against financial loss from defects in a property's title, such as undisclosed liens, ownership disputes, forgery in the chain of title, or recording error...

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Can I buy a home with less than 20% down payment?

Yes, many loan programs allow down payments well below 20%. Conventional loans are available with as little as 3% down for first-time buyers (Fannie Mae HomeReady and Freddie Mac H...

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What is a mortgage rate lock?

A rate lock is a lender's guarantee that you will receive a specific interest rate for a defined period — typically 30, 45, or 60 days. Once locked, your rate will not change eve...

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What is a cash-out refinance?

A cash-out refinance replaces your existing mortgage with a new, larger loan and you receive the difference in cash at closing. For example, if your home is worth $500,000 and you...

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How does mortgage insurance work on FHA loans?

FHA loans require two types of mortgage insurance. The first is an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, paid at closing or rolled into the loan....

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What is an FHA Streamline Refinance?

An FHA Streamline Refinance is a simplified refinance program available to homeowners with existing FHA loans. It is designed to lower your interest rate and monthly payment with m...

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Can I get a mortgage if I am self-employed?

Yes, self-employed borrowers can qualify for mortgages, but the documentation requirements are more extensive. Lenders typically require two years of personal and business tax retu...

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What is a reverse mortgage?

A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home equity into cash without making monthly mortgage payments. The most common type is a Home E...

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