Purchase A Home FAQs
Can I buy a home if I have less-than-perfect credit?
Yes. Keep in mind that lenders don't just look at your past history, but also at your ability and willingness to pay in the future. We may be able to help you buy a home, even if your credit isn't perfect.
When should you pay discount points?
When you pay a discount point, you are essentially paying part of your interest to the lender up front. This will lower your interest rate - as well as your monthly payment - over the life of the loan. One discount point is typically equal to 1% of the loan amount. For example, one point on a $100,000 loan would require payment of $1,000 at closing. Generally speaking, the longer you plan to remain in a property or hold your mortgage, the more advantageous it is to pay points. There is no requirement to pay discount points; whether or not you decide to pay points is completely up to you.
How much do I need for a down payment?
Each mortgage program requires a different minimum down payment. Below are the general guidelines for minimum down payment:
FHA - 3.5%
USDA - ZERO
VA - ZERO
Conforming/Conventional - 3-5%
Which mortgage and homeowners costs are tax-deductible?
Three types of mortgage and homeowners costs may be tax-deductible: Discount points, interest paid on a home loan or home equity loan and property taxes. After the year of sale, your mortgage interest and annual property taxes are the only deductible costs. For a refinanced loan, points must be deducted over time. Consult your tax advisor for advice about your situation.