LOAN TYPE

FHA Loan Buyers

The Federal Housing Administration (FHA) provides mortgage insurance to help lower-income and first-time homebuyers qualify for loans with:

Low Down Payment: Only 3.5% of the home's purchase price.

Flexible Credit Requirements: Qualify with a credit score as low as 500.

Debt-to-Income Ratio: Maximum of 43%; some lenders may allow more.

Mortgage Insurance: Upfront and annual premiums are required.

Property Standards: The home must be safe and habitable.

Eligible Properties: Includes single-family homes, manufactured homes, and some condos.

Loan Limits: Varies by location; generally up to $472,030.

Occupancy: Must be the primary residence within 60 days of closing.

Approved Lenders

Only FHA-approved lenders can provide these loans. Search the FHA's lender list or consult a mortgage broker.

VA Loan Buyers

The Department of Veterans Affairs (VA) offers loans to eligible veterans and active-duty personnel, featuring:

No Down Payment: Makes homeownership accessible.

Certificate of Eligibility (COE): Needed to verify eligibility.

Credit Score: No minimum, but most lenders prefer 620 or higher.

No Mortgage Insurance: Reduces monthly payments.

Loan Limits: Typically up to $1,000,000, varying by location.

Property Standards: Must be safe and habitable.

Occupancy Requirements: Must occupy the property within 60 days.

Funding Fee: A percentage paid at closing, based on service type.

Approved Lenders

Work with VA-approved lenders for the best options.

Conventional Loan Buyers

Conventional loans are private mortgages not backed by the government, ideal for those not eligible for FHA or VA loans:

Down Payment: Minimum of 5%; higher for lower credit scores.

Credit Score: Typically requires a score of 620 or higher.

Debt-to-Income Ratio: Maximum of 45%.

Private Mortgage Insurance (PMI): Required if down payment is under 20%.

Property Standards: Homes must meet safety and habitability criteria.

Loan Limits: Vary by location; up to $822,375 in high-cost areas.

Documentation: May require extensive financial information.

 Self-employed individuals may face additional challenges when applying for a mortgage compared to those who are salaried employees with a regular paycheck. However, self-employed individuals can still qualify for a mortgage loan by meeting certain requirements and providing additional documentation.

Here are some of the key requirements and details associated with self-employed mortgage borrowers:

1. Proof of income: Self-employed borrowers must provide      proof of their income, which can be more challenging than for salaried      employees who receive a regular paycheck. Self-employed borrowers may need      to provide tax returns, business financial statements, and/or a profit and      loss statement to demonstrate their income.
2. Credit score: As with any mortgage loan, self-employed      borrowers should have a good credit score to qualify for a mortgage loan.      Most lenders require a minimum credit score of 620 or higher.
3. Debt-to-income ratio: Lenders will assess the      borrower's debt-to-income ratio to determine their ability to repay the      mortgage. The debt-to-income ratio for self-employed borrowers is      calculated based on their net income after business expenses and other debts      have been taken into account.
4. Down payment: Self-employed borrowers may need to      provide a larger down payment than salaried employees, especially if their      income is less stable or they have higher debt-to-income ratios.
5. Documentation: Self-employed borrowers must provide      more documentation to support their mortgage application, including tax      returns for the last two years, financial statements for their business,      and a profit and loss statement.
6. Stable income: Lenders prefer borrowers who have a      stable income history, so self-employed borrowers who have been in      business for several years and have a consistent income may have an easier      time qualifying for a mortgage loan.
7. Approved lenders: Some lenders specialize in working      with self-employed borrowers and may have more flexible underwriting      guidelines. Borrowers can work with a mortgage broker who has experience      with self-employed borrowers to find a lender who is a good fit for their      needs.
8. Alternative documentation: In some cases, self-employed      borrowers may be able to provide alternative documentation, such as a bank      statement, to demonstrate their income if they do not have traditional tax      returns or financial statements.

It is important for self-employed borrowers to understand the unique requirements and challenges of obtaining a mortgage loan. They may benefit from working with a lender or mortgage broker who has experience with self-employed borrowers to ensure their mortgage application is handled effectively.

 Qualifying for a mortgage loan after a foreclosure can be challenging, but it is possible. Here are some steps that can help you improve your chances of being approved for a mortgage loan:

1. Improve your credit score: Foreclosure can have a significant impact on your credit score, so it's important to take steps to improve your credit as soon as possible. This may involve paying down debt, making payments on time, and disputing any errors on your credit report.
2. Wait a certain period: Most lenders require borrowers to wait a certain period of time after a foreclosure before they are eligible for a new mortgage loan. This waiting period can range from two to seven years, depending on the type of loan and the lender's requirements.
3. Save for a larger down payment: A larger down payment can help compensate for the increased risk associated with a previous foreclosure and may increase your chances of being approved for a mortgage loan.
4. Provide documentation: Borrowers who have experienced a foreclosure may need to provide additional documentation to support their mortgage application, such as proof of income and assets, and a letter of explanation for the foreclosure.
5. Work with a lender who specializes in helping borrowers with past foreclosures: Some lenders have experience working with borrowers who have experienced a foreclosure and may be more likely to approve a loan in these circumstances. You can work with a mortgage broker who specializes in helping borrowers with past foreclosures to find a lender who is a good fit for your needs.
6. Consider an FHA loan: FHA loans are government-backed loans that may be more lenient in their requirements for borrowers who have experienced a foreclosure. FHA loans typically require a lower down payment and may have a lower credit score requirement than conventional loans.

It's important to understand that even if you meet the requirements for a new mortgage loan after a foreclosure, you may still be offered less favorable terms, such as a higher interest rate, than borrowers who have not experienced a foreclosure. It may also take some time and effort to rebuild your credit and improve your chances of being approved for a mortgage loan.

 Foreign national buyers face unique challenges when applying for a mortgage loan in the United States. However, with the right documentation and preparation, it is possible for foreign national buyers to qualify for a mortgage loan.

Here are some requirements and tips for foreign national buyers looking to qualify for a mortgage loan:

1. Proof of income: Foreign national buyers must provide proof of their income, which can be more challenging if they do not have a regular paycheck or if their income is in a foreign currency. Lenders may accept alternative documentation, such as bank statements, to demonstrate their ability to repay the loan.
2. Credit score: Lenders typically require a minimum credit score of 620 or higher, so foreign national buyers should take steps to improve their credit score if necessary.
3. Down payment: Foreign national buyers may need to provide a larger down payment than U.S. citizens, as they may be considered a higher risk due to their non-resident status. A larger down payment can help compensate for this increased risk and may increase the chances of being approved for a loan.
4. Employment history: Lenders prefer borrowers with a stable employment history, so foreign national buyers should provide documentation that demonstrates their stability and ability to repay the loan.
5. U.S. banking history: Foreign national buyers who do not have a U.S. banking history may need to provide alternative documentation, such as a letter from their foreign bank, to demonstrate their ability to repay the loan.
6. Tax identification number: Foreign national buyers may need to obtain a U.S. tax identification number (TIN) to support their mortgage application.
7. Work with a lender who specializes in working with foreign national buyers: Some lenders have experience working with foreign national buyers and may be more likely to approve a loan in these circumstances. You can work with a mortgage broker who specializes in helping foreign national buyers to find a lender who is a good fit for your needs.

It's important to understand that the requirements and underwriting criteria for foreign national buyers can vary greatly depending on the lender and the type of loan being sought. By preparing in advance and working with a lender who has experience working with foreign national buyers, it is possible for foreign national buyers to successfully obtain a mortgage loan in the United States.