Question 1

How much house can I afford?

Accepted Answer

A common guideline is to spend no more than 28% of your gross monthly income on housing costs including mortgage, taxes, and insurance. Use our free calculator for a personalized estimate.

Question 2

What credit score do I need to buy a house?

Accepted Answer

Conventional loans typically require a 620 minimum. FHA loans allow scores as low as 580 with 3.5% down. VA loans have no official minimum but lenders usually prefer 620+.

Question 3

How much down payment do I really need?

Accepted Answer

Not always 20%. Conventional loans allow as little as 3% down, FHA requires 3.5%, and VA and USDA loans offer 0% down for eligible borrowers.

Question 4

What's included in my monthly mortgage payment?

Accepted Answer

Your payment typically includes PITI: Principal, Interest, Taxes (property taxes), and Insurance (homeowners + PMI if applicable).

Question 5

What's the difference between FHA, VA, and conventional loans?

Accepted Answer

Conventional loans are not government-backed and require stronger credit. FHA loans are government-backed with flexible requirements for first-time buyers. VA loans are for veterans and military with 0% down and no PMI.

Question 6

Do VA Loans really require $0 down payment?

Accepted Answer

Yes. VA loans allow eligible veterans, active-duty service members, and surviving spouses to buy with no down payment and no PMI.

Question 7

What down payment assistance programs are available for first-time buyers?

Accepted Answer

Many state and local programs offer grants and forgivable loans. Common options include HUD-approved assistance, Fannie Mae HomeReady, Freddie Mac Home Possible, and state housing finance agency programs.

Question 8

What's the difference between pre-qualified and pre-approved?

Accepted Answer

Pre-qualification is an informal estimate with no credit check. Pre-approval is a formal lender verification of income, assets, and credit — sellers take it much more seriously.

Question 9

What is PMI (Private Mortgage Insurance)?

Accepted Answer

PMI protects the lender if you default. It is required on conventional loans with less than 20% down, typically costing 0.5% to 1.5% of the loan amount annually.

Question 10

How much does PMI cost and when can I remove it?

Accepted Answer

PMI costs roughly $125 to $375 per month on a $300,000 loan. You can request removal at 20% equity and lenders must cancel it automatically at 22% equity under federal law.

Question 11

How do I avoid PMI altogether?

Accepted Answer

Put 20% or more down on a conventional loan, use a VA loan, use a piggyback 80-10-10 loan structure, or choose lender-paid PMI built into a slightly higher rate.

Question 12

How do current interest rates affect my monthly mortgage payment?

Accepted Answer

Significantly. On a $300,000 loan, the difference between 6% and 7% is roughly $180 per month — over $65,000 over the life of the loan.

Question 13

Should I buy a home now or wait for mortgage rates to drop?

Accepted Answer

Timing the market is difficult. A common strategy is to buy now and refinance later when rates drop. Your financial readiness matters more than trying to time rates perfectly.

Question 14

What's the difference between APR and interest rate?

Accepted Answer

The interest rate is the base borrowing cost. APR includes the interest rate plus fees like origination charges and points, giving a more complete picture for comparing loan offers.

Question 15

What are closing costs and how much should I expect to pay?

Accepted Answer

Closing costs typically range from 2% to 5% of the loan amount, covering appraisal, title insurance, lender fees, and prepaid taxes and insurance. On a $300,000 home expect $6,000 to $15,000.

Frequently Asked Questions

💰 AFFORDABILITY & BUDGETING

🏦 LOAN PROGRAMS & FINANCING

💵 PMI & INSURANCE

📈 INTEREST RATES & MARKET TIMING

🏠 HOME BUYING PROCESS

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