Frequently Asked Questions about Mortgage Lending
Reliance First Capital
5 Often Asked Questions About Mortgages
1. Do I need to put a 20% down payment to buy a home?
No, we have programs that allow you to buy a home with just 3% down or less.
2. What is PMI?
Private Mortgage Insurance. If you put less than 20% down on a financing of a new mortgage, the lender charges a monthly insurance premium to your monthly payment until you have paid off 20% of the mortgage (at which point the mortgage insurance is removed. The great news is we have programs to help eliminate the monthly mortgage insurance which will help reduce your monthly obligations and save you thousands over the lifetime of your mortgage.
3. Do you offer any first time home buyer programs?
Yes, we have special ‘first time’ home buyer programs which allow for as little as a 3% down payment, or possible no down payment, letting new buyers keep more money in their pockets to help settle into their new home.
4. What do I have to do to get a pre‐approval?
Speak with your Mortgage Analyst, begin an application which includes a review of your credit, and provide income and assets information to help determine which program you qualify for and which are best for you and your family. To help make the application quicker, it’s helpful to provide a photo ID as well as these financial documents: 2 years of tax returns, W2s, paystubs and bank statements.
5. What different programs do you offer? How do I know what fits best for me?
We offer a variety of programs such as USDA, FHA, Conventional, Home Ready and Home Possible, and VA. The USDA mortgage program is specially-designed for rural areas and lower income families and allows buyers to purchase a home with no money down and has special income requirements. The FHA mortgage option is a great first-time home buyer program for families needing income and credit flexibility. Conventional programs including Home Ready and Home Possible are uniquely customized for families which higher credit scores and allows for only a 3% down payment while providing the benefit of reduced closing costs and monthly mortgage insurance (or even an option to completely remove the monthly mortgage insurance premium). VA loans are available for all veterans and provides no money down and reduce closing costs programs, making it easier for veterans to transition into a home for themselves and their family. Speak with one of our experienced and licensed Mortgage Analysts today and they can help you identify which program is best- suited for you and your family.