Buyer's Guide

Step 3 of 10

Get Pre-Approved

Being pre-approved, unlike being pre-qualified, means you've actually been approved by a lender for a specific loan amount.

You will need to provide documented financial information (income, statements, assets, debt & credit reports etc.) to be reviewed & verified by the lender.

Type of Loan Options

Type of LoanCredit ScoreDown Payment
VA Loan620No Down Payment
USDA Loan620No Down Payment
FHA Loan580+ (3.5%) / 500-579 (10%)3.5% - 10%
203K Loan6403.5%
Conventional 976203%
Conventional Loan6405-20%

Types of Mortgage Loans

VA Loan

Department of Veteran Affairs

Who Qualifies: Veterans, Personnel with honorable discharge, Reservists & National Guard, Surviving Spouses

Down Payment

None

Upfront MI

None

Monthly MI

None

Min Credit

580

USDA Loan

Department of Agriculture

Who Qualifies: Someone who is buying a home in a USDA-designated rural area

Down Payment

None

Upfront MI

2% (can be rolled in)

Monthly MI

Required

Min Credit

640

FHA Loan

Federal Housing Administration

Who Qualifies: Anyone who meets the minimum credit and income levels

Down Payment

At least 3.5%

Upfront MI

1.75% of loan

Monthly MI

Required

Min Credit

580-640

203K Loan

Federal Housing Administration

Who Qualifies: Anyone who plans to purchase a fixer-upper or needs to renovate their home and meets credit & income requirements

Down Payment

At least 3.5%

Upfront MI

1.75% of loan

Monthly MI

Required

Min Credit

580-640

Conventional 97

Who Qualifies: Available to first time home buyers (a buyer who hasn't owned in the last three years) can put 3% down

Down Payment

3%

Upfront MI

None

Monthly MI

Required

Min Credit

620

Conventional Loan / Select Smart Plus

Who Qualifies: Anyone who meets lenders credit, income & debt level requirements

Down Payment

5-20%

Upfront MI

None

Monthly MI

Required

Min Credit

620

Income Qualifications

Qualifying Income
  • W-2 Income/Salary
  • Income from part-time jobs
  • Income from a second Job
  • Overtime & Bonuses
  • Seasonal jobs
  • Self-employed Income
  • Alimony & child support (Documentation required)
Non-Qualifying Income
  • Income from the lottery
  • Gambling
  • Unemployment pay
  • Single bonuses
  • Non-occupying co-signer income
  • Unverifiable income
  • Income from rental properties

Needed Documents

  • W2's from the past 2 years
  • 3 months worth of pay-stubs
  • Bank statements (past 3 months)
  • Previous 2 years of tax returns
  • List of your debts & assets
  • Divorce decree (if applicable)
  • Additional income documents