Mortgage FAQs | VA, FHA, First-Time Buyer & Refi Questions
1. What’s the difference between a fixed-rate and a conventional loan?
A conventional loan refers to a mortgage that’s not backed by the government and typically follows Fannie Mae or Freddie Mac guidelines. A fixed-rate loan means your interest rate stays the same for the entire loan term. Many conventional loans are fixed-rate, but not all fixed-rate loans are conventional — FHA, VA, and jumbo loans can also have fixed rates.
2. How much do I need for a down payment?
Down payments vary by loan type:
- Conventional: As low as 3% for first-time buyers
- FHA: Minimum 3.5%
- VA and USDA: $0 down for eligible borrowers
Your down payment can also affect your mortgage insurance and interest rate.
3. Do I need perfect credit to get a mortgage?
Not at all. Some programs accept scores as low as 580. FHA loans are more flexible with credit, while conventional loans usually require a 620+ score. Higher credit scores can help you qualify for better interest rates.
4. What is PMI and when do I have to pay it?
PMI (Private Mortgage Insurance) is typically required on conventional loans when you put down less than 20%. FHA loans require MIP (Mortgage Insurance Premium) regardless of down payment. VA loans do not have monthly mortgage insurance.
5. How long does it take to close on a mortgage?
Most purchases and refinances close in 20–30 days, depending on the loan type, appraisals, and documentation. Fast-track closings are possible in some cases.
6. Can I qualify if I’m self-employed?
Yes! Self-employed borrowers can qualify for all major loan types. You’ll typically need 1–2 years of tax returns or bank statements, depending on the program. Some conventional loans may only require one year of returns if your income is stable.
7. What’s the difference between pre-qualification and pre-approval?
- Pre-qualification is a quick estimate based on self-reported information
- Pre-approval is a more detailed review using credit reports and income verification — it carries more weight with sellers
We recommend getting fully pre-approved before making an offer.
8. Are VA loans really $0 down?
Yes! With full VA entitlement, eligible veterans and service members can purchase a home with no down payment, often up to $3 million or more, depending on the lender. VA loans also come with no monthly PMI.
9. Can I buy a home with a low income?
Yes — programs like FHA, HomeReady®, and Home Possible® are designed for low-to-moderate income borrowers. Many also offer down payment assistance. Your debt-to-income ratio, credit score, and local loan limits will determine eligibility.
10. What’s better — a 15-year or 30-year mortgage?
- 15-year: Higher monthly payment, but lower interest cost over time
- 30-year: Lower monthly payment, but higher total interest
The right choice depends on your budget, income stability, and long-term goals. We’ll help you compare both.
11. Can I use gift funds for my down payment?
Yes! Most loan programs allow gifted funds from family or approved sources. FHA and conventional loans have specific rules, but this is a common strategy for first-time buyers.
The right choice depends on your budget, income stability, and long-term goals. We’ll help you compare both.
12. What are current mortgage rates?
Rates change daily based on market conditions, credit score, loan type, and down payment. Contact us for a custom quote — we’ll help you compare today’s rates and lock in the best option.
13. Can I refinance if I already have a mortgage?
Absolutely. You can refinance to:
- Lower your rate
- Switch loan terms (30 → 15 year, or vice versa)
- Tap into equity with a cash-out refinance
- Remove PMI
We’ll review your current loan and see if it makes sense to refi.
14. Do you offer jumbo loans?
Yes! Jumbo loans cover amounts above the conforming loan limit (over $806,500 in most areas for 2025). These loans require strong credit, larger down payments, and asset reserves — but we offer competitive rates for qualified borrowers.