A home loan is exactly what it sounds like: money you borrow to purchase a house. If you’re ready to become a homeowner, you’ll need to meet certain criteria to qualify for a home loan. Factors like your credit score, income, and debt-to-income ratio (DTI), and even the price o...
In addition to a conventional home loan, there areother types of mortgagesthat may suit your needs. For example, U.S. Federal Housing Administration (FHA) loans, Department of Veterans Affairs (VA) loans, and U.S. Department of Agriculture (USDA) loans are three common government-backed home...
Department of Agriculture (USDA). A down payment as low as 3% may be enough to qualify for many first-time homebuyer loans. While Fannie Mae and Freddie Mac back most conventional loans, their special homebuyer loans and those for first-timers may not be available with all lenders. Some ...
To qualify for an FHA loan, you’ll want to aim for a debt-to-income (DTI) ratio at or below 50%, including your new mortgage payment. Here’s a quick example to illustrate how to calculate your DTI: Auto loans: $850 Credit cards: $400 ...
USDA Loan Calculator How to calculate your monthly USDA loan payment Let’s say you’re hoping to purchase a home in a rural area. To find out what your monthly USDA mortgage payments are, you’ll need to know the following information for the USDA mortgage calculator: ...
If you have a USDA loan, you must have made on-time payments for the previous 12 months before being eligible to refinance through the United States Department of Agriculture’s (USDA) streamlined refinance program. To qualify for a USDA streamlined refinance, the new interest rate must be at...
3. Government-backed home loans Government-backed loans refer to mortgages that are insured by a government agency—the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA). Each type of loan has individual requirements...
Facts to Know About Home Loans 1. A mortgage is a loan used to finance a property purchase. 2. You typically need a decent credit score to get a mortgage. 3. Lenders will consider your income and employment history when determining if you qualify for a mortgage. ...
If you’re buying a home in a rural area, a USDA loan from the U.S. Department of Agriculture could make it easier to qualify for financing while also reducing your loan costs. Note that USDA loans have some unique eligibility requirements and a slightly different application and approval pr...
USDA loansare best for homebuyers in eligible rural areas with lowerhousehold incomes, little money saved for a down payment, and who couldn't otherwise qualify for a conventional loan product. Fixed-rate loans can be a good choice for people who plan to live in their homes for a long time...