When you’re ready to purchase a home, it’s easy to get stuck when it comes to deciding the right mortgage for your needs. With so many options out there, it’s hard to tell which is the best one for you.
Don’t worry if you’ve never heard of a debt-to-income ratio before. Most people don’t learn about DTI until they’re preparing to get a loan for something like a car or home.
It’s important to be aware of lender debt-to-income requirements when applying for an FHA loan to increase the chance of loan approval. In addition, it is highly recommended to calculate your DTI ratio to see where you stand.
Prequalification and preapproval are sometimes used interchangeably, but there is a slight difference between the two during the mortgage process.
For individuals navigating homeownership for the first time, conventional loans may seem out of reach due to high credit standards and stringent requirements. Fortunately, FHA loans are a great option for borrowers with lower credit scores or limited funds for a down payment.
To get approved for an FHA loan, lenders will look at a borrower’s previous and current employment for the past two years to ensure they have a steady income to repay the loan. It’s important to understand these guidelines and be prepared when applying for an FHA loan.
Fannie Mae's HomeReady mortgage is designed to help people with low-to-moderate income and good credit buy a home. With low financing and mortgage insurance costs, a HomeReady loan can be a great alternative to conventional loans.
A USDA loan is one of the best options for refinancing your home purchase. This zero-down mortgage is backed by the USDA and provides affordable financing to families in rural areas. The process for a USDA loan is fairly simple and comparable to other loan types.
If you are a first-time homebuyer or have a lower income, you may wonder what programs are available to help you achieve homeownership. Fortunately, agencies like Freddie Mac and Fannie Mae have developed programs specifically for this purpose.