Your Mortgage Resource Hub
Everything you need to navigate the home financing process with confidence—calculators, FAQs, loan checklists, and key mortgage terms, all in one place.
FAQs
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PMI, or private mortgage insurance, is required on most, but not all mortgages when a homebuyer has less than a 20% down payment. Under normal circumstances on a conventional mortgage, the PMI cost and coverage will fall off automatically when the home mortgage balance reaches 78% of the original purchase price. As the homeowner, you can also request it be dropped if you believe your mortgage balance is 80% of the homes current value (but generally you must pay for an appraisal). Many decades ago, lenders would only provide mortgages to homebuyers that had 20% down payment or more. They viewed owing more than 80% of the home’s value as too much risk if they had to foreclose and therefore wouldn’t offer loans greater than that percentage. Of course, this hindered who could buy a home drastically as many did not have 20%. To help and assist with this, private mortgage insurance stepped in and began providing insurance policies covering the lenders in the case of default for margins above 80% loan to value allowing homebuyers (for a monthly fee) to place a lower down payment on a home and still move forward with the purchase.
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PMI is based on numerous variables including debt to income ratios/ credit scores/ down payment amount/ loan type/ etc. With this being said, you can expect to pay anywhere from $20 - $300+ per month. Generally, FHA mortgages will have higher PMI costs than Conventional mortgages.
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Generally, an appraisal will be required however there are instances where a homebuyer will receive what is called an appraisal waiver. An appraisal waiver could occur when there have been numerous recent appraisals completed in the neighborhood the home is being purchased in with similar buyer characteristics. This results in the lender becoming comfortable with the mentioned value of the property and not needing a third party to confirm. Appraisal waivers are also more common when the homebuyer is placing 20% down payment or more and especially common when the down payment is greater than 40%.
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The minimum down payment depends on the loan program being utilized as well as how the property will be held (primary residence/ second home/ or investment property). With USDA and VA home loans, 0% down payment is generally an option. FHA generally requires 3.5% down payment or greater. While conventional mortgages require 3% or greater down payment. Some more unique financing options like bank statement mortgages, require 10% down payment or greater. When looking at a second home purchase, 10% down payment or more is the average and with investment properties that will increase to 15-20% or greater.
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Yes, we can account for part time employment income however, this income is generally deemed by underwriting to be a variable source of income and therefore most likely requires a two-year history to project this income forward for mortgage qualification purposes.
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Similar to part time income, any self-employment income or business income is generally deemed by underwriting to be a variable source of income therefore most likely requires a two-year history to project this income forward for mortgage qualification purposes. There are a few exceptions with this, specifically some options when it comes to the business you now own being in a line of work that you were employed with prior. Another option that could work with a shorter time frame is a bank statement mortgage.
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Yes, we can account for overtime income however, this income is generally deemed by underwriting to be a variable source of income and therefore most likely requires a two-year history to project this income forward for mortgage qualification purposes.
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Yes, we can account for bonus income however, this income is generally deemed by underwriting to be a variable source of income and therefore most likely requires a two-year history to project this income forward for mortgage qualification purposes.
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A few general ways you can obtain a lower interest rate is by improving your credit score, in some situations increasing your down payment, or completing a permanent or temporary interest rate buydown. The buydown or interest rate reduction is an upfront cost that will increase your closing costs resulting in lower interest rates for a specified period of time or throughout the life of your mortgage.
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Gift funds are a way to source your down payment and/ or closing costs without utilizing your personal funds. Generally, gift funds do have to come from family members and there will be some additional documentation that has to be completed (like a gift letter).
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A co-signer is a way to qualify for a home mortgage if you do not qualify by yourself. A co-signer, who generally needs to a be family member, can step in and sign on the mortgage with you. The mortgage becomes their responsibility as well, but we are also then able to utilize their income (offset by their debts) for mortgage qualification purposes.
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You can use retirement funds for down payment however the suggestion ALWAYS is to discuss the pros and cons of this with your financial advisor. If you are not of retirement age, then the withdrawal will likely carry a penalty, and you may also be taxed by the withdrawal amount as income.
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Down payment assistance is another way that you can source your down payment. For instance, if you were pursuing an FHA mortgage that has a minimum down payment requirement of 3.5%, you could also pursue some form of down payment assistance second loan or grant that provides 3.5% of the purchase price in additional funds. You then have 100% financing, or 0% down payment. There are a TON of assistance programs out there for almost all homebuyers purchasing a property as a primary residence. Many of the programs are income restricted and reserved for low to moderate income households. However, there are also many other programs that do not have income limits.
What Our Clients Say
“I couldn't have been happier using Mark to help complete my home purchase.
As a first-time homebuyer, I was completely out of my comfort zone—but Mark made the process smooth and easy. His calm, supportive approach helped ease my stress every step of the way. Even though I was prequalified months before closing, he stayed in touch and guided me through a tough market. I’m so grateful for his help and will be recommending him to anyone in need of a lender. Thank you, Mark!”
– Maddux Kimball
“Mark was incredible to work with. We were first time home buyers, still deciding if we wanted to keep renting or to take the plunge and buy a house.
We felt no pressure from him, and he patiently answered all our questions as we considered multiple scenarios. He was very timely in preparing multiple pre-approval letters and and also was always a step ahead of the loan approval process - keeping us informed about what was coming next. I heartily recommend Mark as a knowledgeable, trustworthy, and very helpful guide on your journey towards financing your home!”
– Jonathan Pfeil
“I refinanced my home at a time when rates were moving up and down erratically.
Mark kept a constant eye on the market to notify me of rate changes and what effects I might expect from upcoming policy changes. He found the best rate for me in the window of time we had to work in, and helped me explore creative options to reduce my monthly payment.”
– Adam Thompson