What credit score do I need to buy a house?

It depends on the program: FHA allows scores as low as 580 with a 3.5% down payment, conventional loans generally start around 620, and VA and USDA have no score set by the agency — the lender sets its own floor, commonly in the low 600s. A higher score does not change eligibility so much as it changes pricing.

How much of my income can go toward debt?

Most approvals land under a 43% to 50% total debt-to-income ratio, counting the new mortgage payment plus every monthly obligation on your credit report. Automated underwriting can go higher when there are strong offsetting factors such as reserves or a long job history, and lower when there are not.

Is a pre-approval a guarantee that I'll get the loan?

No — a pre-approval is a lender's opinion based on the documents reviewed at the time, and it is still conditional on the property, the appraisal, and your file staying unchanged. It is strong enough for sellers to take an offer seriously, which is its real purpose.

Can I get a mortgage if I'm self-employed?

Yes, but income is calculated from your tax returns, not your deposits — usually the two-year average of net income after write-offs. This is why many self-employed borrowers qualify for less than they expect: the deductions that lower your tax bill also lower your qualifying income.

Will applying with several lenders hurt my credit?

Mortgage inquiries pulled within the same shopping window are treated as one event by the scoring models, so comparing lenders over a couple of weeks costs you very little. Opening new accounts or running up cards during the process does far more damage.

Do I really need 20% down?

No. VA and USDA loans allow zero down for eligible borrowers, FHA requires 3.5%, and conventional programs go as low as 3% for qualified buyers. Twenty percent is simply the point at which conventional loans stop requiring mortgage insurance.

When does mortgage insurance come off?

On a conventional loan, private mortgage insurance can be removed once you reach sufficient equity, and it terminates automatically at a set point in the amortization schedule. On most FHA loans taken with the minimum down payment, the mortgage insurance premium stays for the life of the loan — removing it means refinancing into a conventional loan.

What do closing costs actually cover?

Lender fees, title and escrow charges, recording and transfer taxes, the appraisal, and prepaid items like homeowners insurance and property taxes held in escrow. The prepaid portion is not a fee — it is money you would owe anyway, collected early.

Can the seller pay my closing costs?

Often yes — every program allows a seller credit up to a set percentage of the price, with the exact cap depending on the loan type, the down payment, and whether the property is a primary residence. A credit cannot exceed your actual costs, so it is negotiated against a real figure, not a round number.

Can I use gift money for the down payment?

Yes, on all the major programs, provided the gift comes from an acceptable source and is documented with a signed letter and a clear paper trail from the giver's account to yours. Undocumented cash deposits are the single most common reason a file stalls late.

FHA or conventional — which is better?

FHA is usually better for lower credit scores or thinner files because it prices less harshly for credit risk; conventional is usually better once your score and down payment are strong, because the mortgage insurance is cheaper and eventually goes away. Compare the total monthly payment, not the interest rate.

Who qualifies for a VA loan?

Eligible veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses, confirmed by a Certificate of Eligibility. It is the strongest program available: no down payment, no monthly mortgage insurance, and a funding fee that some borrowers are exempt from entirely.

What makes a property USDA-eligible?

The location and the household income, not the condition or the buyer's status. The address has to sit inside a designated rural-eligible area, and total household income has to fall under the limit for that county. Many suburban fringe addresses qualify and people never check.

When does a loan become a jumbo?

When the loan amount exceeds the conforming limit set each year for that county, which is higher in designated high-cost areas. Above that line the loan cannot be sold to Fannie Mae or Freddie Mac, so underwriting tightens: more reserves, stronger credit, and more documentation.

What's the difference between a rate-and-term and a cash-out refinance?

A rate-and-term refinance replaces your existing balance to change the rate or the payoff period; a cash-out refinance increases the balance and hands you the difference. Cash-out is priced higher and allows less equity to be borrowed against, because the risk is higher.

What is a streamline refinance?

A reduced-documentation refinance available on existing FHA and VA loans — the FHA Streamline and the VA Interest Rate Reduction Refinance Loan. They typically skip the appraisal and much of the income verification, but they only lower the rate; you cannot take cash out.

When is refinancing not worth it?

When the closing costs take longer to recover than you plan to keep the loan, or when a lower rate on a re-started 30-year term costs more in total interest than the payment saving is worth. Divide the total cost by the monthly saving: if that number of months is longer than you'll stay, don't do it.

Mortgage

The mortgage questions people actually ask

Thirty-five years in mortgage and lending comes down to knowing which questions decide a deal. These are them, answered the way they get answered on the phone — one direct sentence, then the detail. It is also a worked example of what a quotable page looks like.

Read this first if you are in the mortgage business

I own and run NonQMe, a Florida lender in the non-QM space. That means there is one industry — mine — where I cannot take every client, because doing the work well would mean handing my own competitors the answers. It is a conflict of interest, and I would rather say it on the page than in an awkward email later. Mortgage is the only industry with this restriction. Every other trade is welcome.

Yes — happy to work with

Loan officers and mortgage brokers doing FHA, conventional, VA and USDA business
Retail lenders and banks with first-time buyer and jumbo programs
Refinance-focused shops and credit unions
Real estate agents, title companies and insurance agents around the transaction

No — direct competitors

Non-QM and bank-statement lenders
DSCR and investment-property lenders
Fix & flip, bridge and hard money lenders
Commercial mortgage lenders and brokers

If you originate FHA, conventional, VA, USDA, jumbo, first-time buyer or refinance business, none of this applies to you — we are not competing for the same borrower.

Getting approved

The questions that come up before anyone talks about a house.

What credit score do I need to buy a house?: It depends on the program: FHA allows scores as low as 580 with a 3.5% down payment, conventional loans generally start around 620, and VA and USDA have no score set by the agency — the lender sets its own floor, commonly in the low 600s. A higher score does not change eligibility so much as it changes pricing.
How much of my income can go toward debt?: Most approvals land under a 43% to 50% total debt-to-income ratio, counting the new mortgage payment plus every monthly obligation on your credit report. Automated underwriting can go higher when there are strong offsetting factors such as reserves or a long job history, and lower when there are not.
Is a pre-approval a guarantee that I'll get the loan?: No — a pre-approval is a lender's opinion based on the documents reviewed at the time, and it is still conditional on the property, the appraisal, and your file staying unchanged. It is strong enough for sellers to take an offer seriously, which is its real purpose.
Can I get a mortgage if I'm self-employed?: Yes, but income is calculated from your tax returns, not your deposits — usually the two-year average of net income after write-offs. This is why many self-employed borrowers qualify for less than they expect: the deductions that lower your tax bill also lower your qualifying income.
Will applying with several lenders hurt my credit?: Mortgage inquiries pulled within the same shopping window are treated as one event by the scoring models, so comparing lenders over a couple of weeks costs you very little. Opening new accounts or running up cards during the process does far more damage.

Down payment and cost

Where most of the confusion — and most of the wasted money — lives.

Do I really need 20% down?: No. VA and USDA loans allow zero down for eligible borrowers, FHA requires 3.5%, and conventional programs go as low as 3% for qualified buyers. Twenty percent is simply the point at which conventional loans stop requiring mortgage insurance.
When does mortgage insurance come off?: On a conventional loan, private mortgage insurance can be removed once you reach sufficient equity, and it terminates automatically at a set point in the amortization schedule. On most FHA loans taken with the minimum down payment, the mortgage insurance premium stays for the life of the loan — removing it means refinancing into a conventional loan.
What do closing costs actually cover?: Lender fees, title and escrow charges, recording and transfer taxes, the appraisal, and prepaid items like homeowners insurance and property taxes held in escrow. The prepaid portion is not a fee — it is money you would owe anyway, collected early.
Can the seller pay my closing costs?: Often yes — every program allows a seller credit up to a set percentage of the price, with the exact cap depending on the loan type, the down payment, and whether the property is a primary residence. A credit cannot exceed your actual costs, so it is negotiated against a real figure, not a round number.
Can I use gift money for the down payment?: Yes, on all the major programs, provided the gift comes from an acceptable source and is documented with a signed letter and a clear paper trail from the giver's account to yours. Undocumented cash deposits are the single most common reason a file stalls late.

Comparing programs

Which loan fits, and why the cheapest headline rate often isn't the answer.

FHA or conventional — which is better?: FHA is usually better for lower credit scores or thinner files because it prices less harshly for credit risk; conventional is usually better once your score and down payment are strong, because the mortgage insurance is cheaper and eventually goes away. Compare the total monthly payment, not the interest rate.
Who qualifies for a VA loan?: Eligible veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses, confirmed by a Certificate of Eligibility. It is the strongest program available: no down payment, no monthly mortgage insurance, and a funding fee that some borrowers are exempt from entirely.
What makes a property USDA-eligible?: The location and the household income, not the condition or the buyer's status. The address has to sit inside a designated rural-eligible area, and total household income has to fall under the limit for that county. Many suburban fringe addresses qualify and people never check.
When does a loan become a jumbo?: When the loan amount exceeds the conforming limit set each year for that county, which is higher in designated high-cost areas. Above that line the loan cannot be sold to Fannie Mae or Freddie Mac, so underwriting tightens: more reserves, stronger credit, and more documentation.

Refinancing

The math that decides whether it is worth doing at all.

What's the difference between a rate-and-term and a cash-out refinance?: A rate-and-term refinance replaces your existing balance to change the rate or the payoff period; a cash-out refinance increases the balance and hands you the difference. Cash-out is priced higher and allows less equity to be borrowed against, because the risk is higher.
What is a streamline refinance?: A reduced-documentation refinance available on existing FHA and VA loans — the FHA Streamline and the VA Interest Rate Reduction Refinance Loan. They typically skip the appraisal and much of the income verification, but they only lower the rate; you cannot take cash out.
When is refinancing not worth it?: When the closing costs take longer to recover than you plan to keep the loan, or when a lower rate on a re-started 30-year term costs more in total interest than the payment saving is worth. Divide the total cost by the monthly saving: if that number of months is longer than you'll stay, don't do it.

Why this page exists, if you are a loan officer reading it

Nothing above is a secret. Every answer here is something you already know and say ten times a week — and almost certainly is not written anywhere on your own website. That gap is the entire reason an assistant names one lender and not another: it can only recommend a business whose answers it can find and check.

The thinking behind that is in why domain experience builds quotable answers, and the mechanical steps — entity facts, schema markup, crawler access — are in the guide to getting cited by ChatGPT.

See which answers your site is missing.

The free scanner reads your live page and returns your citation score, per-engine status and three specific fixes.

Check my AI Citation Score