Mortgage FAQ
Plain-English answers to common mortgage questions. Each entry has its own page with a detailed answer, related links, and current pricing.
Can I get a mortgage with bad credit?
Yes. FHA loans accept 580+ FICO with 3.5% down (500+ with 10% down). Non-QM and DSCR programs go further down for specific scenarios.
How much down payment do I need for FHA?
3.5% with 580+ FICO. 10% with 500-579 FICO. Down payment can come from gift funds or DPA programs.
Can self-employed borrowers get a mortgage without tax returns?
Yes. Bank statement, P&L-only, 1099-only, and asset-qualifying programs let self-employed borrowers skip tax returns entirely.
Can I get a mortgage with only 1 year of self-employment?
Yes if you had W-2 employment in the same industry the year prior. Some non-QM programs accept 1 year unconditionally.
How long after bankruptcy can I get a mortgage?
FHA: 2 years post-Chapter 7 (1 year post-Chapter 13 with payments). Conventional: 4 years. Non-QM: as little as 12 months.
How long after foreclosure can I get a mortgage?
FHA: 3 years. VA: 2 years. Conventional: 7 years (3 years with extenuating circumstances). Non-QM: as little as 12-24 months.
Can I buy a house with no credit history?
Yes. FHA accepts manual underwriting with 12 months of alternative credit (rent, utilities, insurance). Some non-QM programs also work.
How much down payment do I need for a jumbo mortgage?
15% with 700+ FICO at most lenders. 10% available at some banks for 740+ FICO with strong reserves.
How can I get a mortgage without a W-2?
Self-employed: bank statement, P&L-only, 1099-only, or asset-qualifying. Retirees: asset-qualifying. Investor: DSCR.
What is the difference between a co-borrower and a co-signer?
A co-borrower is on the title and the loan. A co-signer guarantees the loan but is usually not on title.
How can I improve my credit score before applying for a mortgage?
Pay revolving balances below 30% utilization, dispute incorrect items, avoid new accounts, and pay all bills on time for 6+ months.
What is the difference between mortgage pre-approval and pre-qualification?
Pre-qualification is a soft estimate based on stated info. Pre-approval is a verified commitment based on actual credit, income, and asset documentation.
How much house can I afford?
Use the 28/36 rule: housing payment under 28% of gross income, total debts under 36%. Lenders cap DTI at 43-50% on most loans.
What is a good mortgage rate?
Compare to current market average (Freddie Mac PMMS). A "good" rate is 0.125-0.5% below average for your specific FICO and LTV.
How long does mortgage approval take?
Pre-approval: 1-3 days. Full underwriting: 30-45 days from contract to close. Some streamlined refinances close in 14-21 days.
Can I buy a house with 1099 income only?
Yes. 1099-only loans, bank statement loans, and conventional loans (with 2 years of 1099 history + tax returns) all work for 1099 borrowers.
Conventional or FHA - which is better for me?
Conventional with 5%+ down at 700+ FICO is usually better long-term. FHA wins for sub-680 FICO or under-5% down or recent credit events.
Today's mortgage rates
Conventional
5.875%
5.911% APR
FHA
5.250%
5.278% APR
VA
5.250%
5.275% APR
Conv: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 680 FICO. 30-yr fixed. Your rate may vary.