Minimum credit score requirements vary by loan program. Conventional loans often require higher scores, while FHA loans may allow lower credit scores with a larger down payment. Your credit score affects loan eligibility, interest rate, and monthly payment, making it a key factor in the mortgage approval process.
Private Mortgage Insurance (PMI) is required on many conventional loans when the down payment is less than 20%. PMI protects the lender, not the borrower. You may avoid PMI with a larger down payment, certain loan programs, or by refinancing once you build enough equity.
Buying a home with less-than-perfect credit is possible. Some loan programs allow lower credit scores, especially with compensating factors like steady income or a larger down payment. Improving your credit before applying can help secure better loan terms.
Many loan programs allow gift funds from family members or approved sources. Documentation is required to show the money is a gift and not a loan. Gift funds can be used toward down payment and sometimes closing costs.
DTI compares your monthly debt payments to your gross monthly income. Lenders use this ratio to determine your ability to repay a mortgage. A lower DTI can improve your chances of approval and help you qualify for better loan terms.
Not at all. First Choice Lending Services is committed to turning our customers into homeowners. We offer financing packages with customers with prior foreclosures and bankruptcies in as little as two years after the event.