Frequently Asked Questions

To qualify for this program, borrowers generally need to have good credit, a down payment of at least 3.5%, a manageable level of debt, and a steady income that is sufficient to repay the loan.

The official minimum credit score for this program is 500, however, mortgage lenders will have the final say. Recent data suggest that 600 and above is a good score for an FHA loan.

As a first-time homebuyer, it can be difficult to prove your creditworthiness, especially if you are young and lack a substantial credit history. The best way to get started is to pay your bills on time, such as the rent, utilities, cell phone bills, or a car payment. You can also work to pay down credit card debt to improve your score and make you a more attractive borrower.

It’s standard to have saved 20% of the home’s price. That means if you’re buying a $300,000 property, you will need $60,000 to put down on the house. That can be a lot of cash, especially for a first-time homebuyer. Fortunately, with  an FHA loan, you don’t have to put down the full 20%. However, the sooner you start saving, the better.

On average, it takes between 30 and 45 days to close on a property, although this may be negotiable.

At Residential Rate, we strive to provide our clients with financing tailored to their financial needs. In order to successfully qualify for a jumbo loan, lenders will look for a strong credit score, a low debt-to-income ratio, substantial reserves, and possibly a higher down payment.

No, they are also available as a 15-year fixed rate loan and as an ARM or adjustable rate mortgage.

No. we offer jumbo loans for single-family and second homes, along with investment properties.

The amount of equity you need to refinance depends on the lender and type of loan. For conventional mortgage loans, many lenders will require at least 20% equity, although some have relaxed their standards and now only require 5% equity

Keep in mind that refinancing doesn’t come without its costs. You will need to pay closing costs, which can range from 2% to 5% of the mortgage balance.

Refinancing means creating a new mortgage loan, so there is an approval process to consider as the lender will check your credit and income. As such, it is best to undertake the refinancing process if your credit score has improved or remained the same. Most banks only require a credit score of 620 for an FHA home loan.

There are options that may allow you to refinance your loan even if the value of your home is less than what you owe. Get in touch with one of our trustworthy agents to see how we can help.

You do not have to refinance with your present mortgage company. While your current lender may be able to offer you a good rate to keep you as a customer, it is always recommended to compare mortgage loan quotes with at least two other banks to ensure you are getting the best rate.

You may be eligible for a VA loan if you meet one or more of the following conditions:

• You have served 90 consecutive days of active service during wartime
• You have served 181 days of active service during peacetime
• You have more than six years of service in the National Guard or Reserves
• You are the spouse of a service member who has died in the line of duty or as a result of a service-connected disability

No, although you can use a VA loan to refinance an existing rental home you once occupied as a primary home.

Yes, you can use your VA loan benefits to purchase a second property. However, that home must be considered your primary residence in order to qualify. If you are living in your second home or vacation house for more than six months of the year, there should be no issue.

If you are a disabled veteran, there is no reason why you should not be eligible for a VA loan.

The process varies in length between lenders, but it is generally a good idea to give yourself 30 days from the time the home purchase contract is signed until the scheduled closing date.

Conventional loans allow you to purchase single-family homes, condos, investment properties, townhomes, lofts, and second vacation homes. This type of loan is very flexible in the type of housing you can purchase.

A typical conventional loan down payment is 20% but it is possible to get a conventional loan with less than 20% down.

Yes, you can refinance with a conventional loan and lower your current mortgage payment, change terms, or switch to an adjustable-rate mortgage (ARM) from a fixed-rate mortgage.

The most popular term for a conventional mortgage loan is 30 years. However, other terms may be available to you depending on your needs.

On average, it takes between 30 and 45 days to close on a property, although this may be negotiable.