A conventional loan is a “conforming” loan, which simply means that it meets the requirements for Fannie Mae or Freddie Mac.

Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors.

With a conventional mortgage, you can purchase a single-family home, condo, or townhome, and it can be either your primary residence, a second home, or an investment property.

Private lenders who fund conventional loans typically want to see:

• A copy of your driver’s license
• Two years of W2s (or two years of full tax returns if you’re self-employed)
• Two recent pay stubs
• A copy of your mortgage statement if you’re currently paying on a home loan

No. Once the equity you build in your home rises to 20%, you can cancel your mortgage insurance and reduce your monthly payment.

It mainly depends on the risk you pose as a borrower. Lenders will typically look at your credit score, debts, and how much you have for a down payment. They’ll also consider where current market rates are sitting.

Yes. The program is open to all homebuyers, whether it’s your first time purchasing a home or not.

There is no maximum loan amount for a USDA loan. The amount you qualify for is based on your debts, income, and ability to repay, just like any other type of home loan.

No. Instead, you pay a one-time upfront USDA guarantee fee, which is 1% of the loan amount and can be rolled into your loan. There is also a smaller annual fee that’s added to your monthly payments as part of your financing.

You can visit the USDA website to check a home’s eligibility. Select the housing type at the top of the page, then type in the address and their search tool will tell you if it’s located in an eligible area.

The primary difference is who is funding the loan. With a USDA Guaranteed Loan, a private lender funds the loan and the USDA backs it against default. With a USDA Direct Loan, the USDA is the lender.

The goal of the USDA 502 Direct Loan program is to help those with limited income buy safe and sanitary housing in rural areas. Payment assistance is provided to the homebuyer and the amount of the subsidy is determined by the family’s adjusted income.

It’s important to note that all or part of the subsidy is required to be repaid by the borrower when the home is sold, or the borrower no longer lives in the home.

You can buy an existing single-family home, build a home, relocate a home, or repair and renovate a home. The home:

• Must be modest in size for the area it’s located in
• A market value that doesn’t exceed the area’s loan limit
• Cannot be designed to produce income

A down payment is not typically required, unless you have assets that go over the asset limit. In that case, you might be required to use a portion of those assets for a down payment.

You can visit the USDA website to check a home’s eligibility. Select the housing type at the top of the page, then type in the address and their search tool will tell you if it’s located in an eligible area.

The primary difference is who is funding the loan. With a USDA Direct Loan, the USDA is the lender. With a USDA Guaranteed Loan, a private lender funds the loan and the USDA backs it against default.

You can buy a single-family residence, two- to four-unit multi-family home, condominium, and certain manufactured homes. There are also some FHA loans that can be used to renovate a home or for new construction.

Yes. Both are an option with an FHA loan.

When applying for a home loan, you’ll need to show that you have steady income and the ability to pay your monthly mortgage. Typically, you’ll be asked to provide:

• Two months of bank statements
• Most recent pay stubs
• Last two years of tax return

Other items you may need to provide include:

• Drivers license
• Social security card
• Account statements for any retirement accounts you have
• A statement from your current mortgage if you own
• Rental statements if you’re renting

Yes, you can. The net income on your tax returns can be used to show your income. However, keep in mind that if you have a low net income due to tax write-offs, it may make it difficult to qualify.

As your lender, we can request it for you. Or you can apply online through the U.S. Department of Veterans Affairs.

Yes. To be eligible you need at least six years of honorable service or 90 days of active duty. You can also qualify if you were discharged with a service-related disability.

Yes, there is one fee you should know about when applying for a VA home loan. You’ll pay a one-time funding fee (which supports the VA loan program) to the Department of Veterans Affairs.

Yes. VA loans are a lifetime benefit and can be used as many times as you like. You just need to pay off a current VA loan before taking out another one.

To answer this question, think about your goals. What are you trying to achieve?

• Do you want to take advantage of falling interest rates?
• Is your monthly mortgage payment putting a serious strain on your budget and you’d like it lowered?
• Do you want to build equity?

There are many reasons to refinance loans and if you have a specific goal in mind, it’s wise to consider it.

The fees will vary among lenders but there are some standard ones that you can expect, including:

• 3rd party fees (credit report, title, escrow, etc.)
• Appraisal fee
• Lender fees for processing and underwriting

You should also be prepared to pay prorated costs associated with property taxes, interest, and homeowners insurance.
If you have enough equity in your home, the fees and costs can be wrapped into your new loan.

Because you’re essentially applying for a new loan, you’ll need to provide many of the same documents you provided for your initial loan, such as pay stubs, bank account statements, and tax returns.

There’s no limit on how many times you can refinance your home.