Frequently Asked Questions

Loans insured by federal agencies like FHA, VA, or USDA.

Insurance protecting the lender if the borrower defaults.

PMI applies to conventional loans with less than 20% down payment.

MIP is required on FHA loans and may be paid upfront and monthly.

Seasoning refers to how long a loan or financial event must age before certain actions are allowed.

Minimum scores vary by loan type, but higher scores result in better rates and terms.

Higher scores indicate lower risk, which typically results in lower interest rates.

DTI measures monthly debt payments compared to gross monthly income.

Limits vary by program, but many loans cap DTI between 43% and 50%.

Stable, verifiable income such as wages, self-employment income, retirement, or rental income.