Page 16 - The Latest Homebuying Guide

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Qualifying for a mortgage

The best person to answer a question regarding a mortgage is
your mortgage loan officer, who will give you an answer after
assessing your current situation. The qualification process in-
volves an analysis of your credit, income, employment, ability to
take care of downpayment, closing and related expenses, and the
value of the home you are interested in buying. Your income will
be the primary factor in determining the price of the home you
qualify for. Income is used to calculate financial ratios that are
vital for mortgage qualification.

There are four main mortgage programs available to home buyers.
This means that you have ample opportunities to qualify and get
the required financing for your home.

Conventional Loans
These are loans offered byy the private sector that are not insured

CONVENTIONAL LOANS

Features Requirements
Down payment Minimum 3%

Credit Score Minimum 620
Private mortgage Insurance (PMI)
Insurance required if down payment is below
20%. Stops with 20% equity
Debt-to-income ratio Up to 50%
Proof of steady income for 2 years
(unless you are a college graduate)
Income
Pay stubs for 30 days
2 years tax returns
Single-family homes
Planned Unit Developments (PUDs)
Eligible properties
Condominiums
2, 3, and 4-unit properties
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