Message me at mwagner@securityhomemortgage.com if you cannot find an answer to your question, or if you have a specific scenario to discuss. There are multiple exceptions to most rules. I'd love to be a resource for you.
The most important step is to start by talking with a loan officer to get prequalified. They’ll review your income, credit, and goals to help you choose the right loan program. Gather key documents like your ID, pay stubs, W-2s, and bank statements. You'll want to know what you can realistically afford before going shopping.
From there, you can begin working with a real estate agent to search for homes that fit your budget.
You can start the process HERE
First-time buyers may qualify for FHA, VA, USDA, and Conventional loans, as well as state and local down payment assistance programs.
FHA loans are government-backed and require as little as 3.5% down. VA loans are for eligible veterans and offer 0% down. USDA loans are for rural areas and also offer 0% down. Conventional loans are not government-backed and typically require 3% to 5% down for first-time buyers.
Conventional loans offer lower PMI costs with higher credit scores. PMI falls off at 20% loan to value.
FHA loans are flexible on credit but have mortgage insurance for the life of the loan
VA loans have no mortgage insurance but are only for veterans.
USDA loans have location and income restrictions.
Conventional loans offer lower PMI costs with higher credit scores. PMI falls off at 20% loan to value.
FHA loans are flexible on credit but have mortgage insurance for the life of the loan
VA loans have no mortgage insurance but are only for veterans.
USDA loans have location and income restrictions.
If you meet the service time and discharge requirements, you may be eligible for a VA loan.
USDA loans are for homes in designated rural areas. Eligibility depends on location and household income limits.
Conforming loans meet Fannie Mae/Freddie Mac guidelines. Non-conforming loans, like jumbo or non-QM loans, do not.
Yes, through VA or USDA loans, or with down payment assistance programs.
Yes, conventional loans with higher credit scores offer lower PMI rates. VA loans have no mortgage insurance.
Many first-time buyer loans have lower down payment options, more flexible underwriting, and access to assistance programs.
Programs vary by state. In Utah, Utah Housing Corporation offers 0% down options.
Utah Housing offers FHA, VA, and conventional loans with second mortgages to cover down payment and closing costs.
Most programs are structured as repayable second mortgages or silent liens, repaid when you sell or refinance.
Yes, most programs have income and purchase price limits.
Yes, many assistance programs are designed to pair with FHA or conventional first mortgages.
FHA: 620+, VA: 620+, USDA: 640+, Conventional: 620+, Utah Housing: 620 to 700 depending on program.
Higher scores usually qualify for lower interest rates and mortgage insurance costs.
Some programs allow non-traditional credit (rent, utility bills) or require a co-signer.
Yes, especially for conventional loans. FHA also allows non-occupant co-borrowers.
Yes, with proper documentation. FHA, VA, and conventional loans allow gifts from family or employers.
Income from employment, bonuses, commissions, self-employment, rental income, alimony, and more may qualify.
Income from employment, bonuses, commissions, self-employment, rental income, alimony, and more may qualify.
Typically, two years of consistent income is required. However, there are exceptions to this rule. Please call me with your scenario and we can go over what will work for you.
Yes, your debt-to-income (DTI) ratio must stay within lender limits.
Yes, recent graduates may qualify using offer letters or proof of professional licensing.
Pay stubs, W-2s, tax returns, bank statements, ID, and any applicable asset/income documentation.
A Loan Estimate shows your loan terms and costs. You receive it within 3 days of application.
The lender verifies income, credit, assets, and property to approve the loan.
Final loan terms, costs, and cash to close. You receive it 3 days before closing.
On average, 20 to 30 days from application to closing.
Costs include lender fees, title insurance, appraisal, etc., usually 2% to 5% of the home price.
It’s recommended to work with an agent. Lenders focus on financing, not home selection or negotiation.
Non-QM loans are for borrowers who don't meet traditional guidelines, like self-employed or credit-challenged buyers.
Yes, many non-QM loans use bank statements, asset depletion, or P&L statements instead of tax returns.
Yes, these are common in non-QM lending.
Yes, non-QM DSCR loans use rental income instead of personal income to qualify.
No, most do not, but they may have higher interest rates.
Minimum down payments usually range from 10% to 20%, with credit scores of 620 and up.
Yes, typically 1% to 2% higher than traditional loans.
Yes, some programs allow approvals as soon as 1 day out of foreclosure or bankruptcy.
Yes, certain non-QM programs are designed specifically for foreign nationals.
Yes, many non-QM loans are ideal for investment and vacation homes.
House hacking is a strategy where you buy a property and rent out part of it (like a basement, extra bedrooms, or separate units) to offset your mortgage payments.
Yes, if the property is a 2- to 4-unit home and you live in one unit, lenders may count a portion of the rental income toward your qualifying income.
Duplexes, triplexes, fourplexes, and single-family homes with rentable space like ADUs or basements are ideal.
FHA, VA, and conventional loans allow 2- to 4-unit owner-occupied properties, making them excellent choices for house hackers.
Yes, for FHA, VA, and most conventional loans on multi-units, you must occupy one unit as your primary residence.
Sure! A buyer purchases a triplex with an FHA loan, putting 3.5% down. They live in one unit and rent out the other two for $1,100/month each. With a $2,400 monthly mortgage payment, they’re only paying $200/month out of pocket after rental income.
No. A homeowner could also rent out a basement apartment, bedroom with a private entrance, or even use Airbnb to house hack a portion of their single-family home.
Yes. Once you've met the required occupancy period (usually one year), you may convert the home to a rental and repeat the strategy with your next purchase.
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