Frequently Asked Questions
What is the minimum down payment for a mortgage?
-
VA Loan: 0%
-
USDA Loan: 0%
-
Conventional 97% LTV Loan: 3%
-
HomeReady/HomePossible Loan: 3%
-
FHA Loan: 3.5%
What credit score minimum is required to qualify for a mortgage?
-
VA Loan: 640 (Variable)
-
USDA Loan: 640 (Variable)
-
Conventional: 620 (Variable)
-
FHA: 580
Can cash gifts be used as a down payment?
Yes. Make sure the gift is made using a personal check, cashier's check, or a wire, and keep all records of the gift.
How long will it take to close my loan?
This depends on many factors....but in general we can close a loan in under 30 days from start to finish.
With exception, we can close faster....especially if you opt into our Upfront Approval program.
Can I get advice from the Brendan Donelson Mortgage Team even if I am not ready to apply?
Absolutely! Our team is happy to help educate and strategize a plan for your future. Our Smart Start meeting is designed for anyone looking for a home now or 1 year from now.
When should I consider refinancing my loan?
Refinancing your home loan is a great idea if it allows you to:
-
Lower your interest rate enough to justify closing costs (even 1% can be enough to make refinancing worthwhile)
-
Refinance from an adjustable-rate mortgage to a fixed-rate mortgage
-
Get a lower interest rate/loan term
-
Tap into your home’s equity to consolidate debt or make expensive home improvements