Mortgage questions, real broker answers
The questions borrowers actually ask on calls — answered with the program rule (with handbook citation), the plain-English translation, the lender-overlay context, and the parts most consumer-finance articles leave out.
Down payment & gift funds
Can My Mom Give Me the Down Payment from Mexico?
Yes — a parent in Mexico can gift you the down payment if the funds are documented to program standard: gift letter, donor source, transfer trail, certified translations.
Do I Really Need 20% Down, or Is That a Myth?
20% down is a myth. Conventional goes to 3%, FHA to 3.5%, VA and USDA to 0%, Jumbo as low as 5-10%. The real question is whether mortgage insurance is worth paying.
How Long Does Gift Money Have to Sit in My Account?
A properly documented gift doesn't need to sit at all — the gift letter and paper trail replace seasoning. Non-gift deposits, by contrast, need 60 days.
Credit & qualifying
What Credit Score Do I Actually Need to Buy a House?
The real program floors: FHA 580 (or 500 with 10% down), Conventional 620, VA no minimum, USDA 640 — plus the retail-lender overlays that move those numbers higher.
I Just Paid Off My Car — Does That Hurt My Mortgage?
Paying off a car can temporarily drop your FICO 5–20+ points by shortening credit-mix and tradeline depth — and during a live loan, that drift can re-trigger underwriting.
My Partner Has a 780 and I Have a 620 — Whose Score Do You Use?
On a joint mortgage, lenders use the lower borrower's middle score — not an average. Workarounds: solo loan + joint title, non-occupying co-borrower, income-only myth-bust.
Co-signers
Can My Mom Co-Sign If She Lives in Another State?
Yes — non-occupying co-borrowers can live in any state under FHA, Fannie, and Freddie rules. Relationship, income, and LTV details that change the answer.
Can My Girlfriend Be on the Loan but Not on the Title?
Probably not — and you may want the reverse anyway. The title-vs-note distinction explained, and why most borrowers asking this want on-title / off-loan.
If My Parents Co-Sign, Can I Refinance Them Off Later?
Yes — a rate-and-term refinance into your name alone is the standard exit. You re-qualify on your own income and credit. Equity and overlay rules to know.
Self-employed
I Write Off Everything on My Taxes — Am I Screwed for a Mortgage?
Self-employed qualifying: how Schedule C net income, depreciation add-backs, and the 2-year average actually work — plus moves that don't require restating returns.
I Just Started My LLC Last Year — Does That Count as 2 Years Self-Employed?
How Fannie B3-3.2-02 and Freddie 5304.1 handle short-tenure LLCs: same-line-of-work rule, prior W-2 substitution, and 1120-S vs 1065 K-1 treatment.
Can I Get a Bank-Statement Loan Instead of Doing Tax Returns?
Bank-statement mortgages for self-employed borrowers: 12-24 months of statements, expense-ratio math, Non-QM pricing, and why most retail lenders can't offer them.
Income edge cases
My Commission Is 70% of My Income — Does It Count?
Yes — commission counts when it's documented and stable. The rules: 2-year average, declining-trend review, sustained-earnings test. Variable income done right.
My Social Security Is My Only Income — What Can I Qualify For?
Social Security counts — and the non-taxable portion is grossed up roughly 125% for qualifying. ECOA bars age discrimination. Here's the real math.
I Just Started This Job 2 Months Ago — Can I Qualify?
Usually yes — the 2-year rule is about work history in your line of work, not tenure at one employer. Offer letters can even qualify you before day one.
FHA edge cases
Can I Get an FHA Loan With a 540 Credit Score?
HUD allows FHA down to 500 FICO (10% down) and 580+ at 3.5% — but most retail lenders overlay to 620 or 640. A broker finds the wholesale investor that follows the floor.
Can I FHA a Condo That Isn't on the FHA-Approved List?
Often yes — the FHA Single-Unit Approval (SUA) process, expanded 2019, lets you finance individual units in non-approved projects subject to insurance, reserve, and occupancy criteria.
Can I Refinance FHA Into Conventional to Drop the MIP?
Yes — at 80% LTV or below, refinancing FHA to Conventional removes MIP entirely. Break-even math, FHA Streamline vs FHA-to-Conv decision tree, HOPA PMI rules.
VA edge cases
Can I Do a VA Loan with a 540 Credit Score?
VA has no program-level credit score minimum — most retail lenders won't touch a 540, but the broker channel can. Here's how, and where the rules actually live.
Do I Have to Pay the VA Funding Fee If I'm Disabled?
No — veterans receiving (or eligible for) service-connected disability compensation are exempt from the VA funding fee under 38 USC § 3729(c). Here's how the exemption works.
Can I Use a VA Loan on a Multi-Unit Property?
Yes — VA allows 2–4 unit primary residences with rental-income offset on 75% of fair-market rent. Owner-occupancy required. Here's how entitlement and limits work.
Conventional & Jumbo
Can I Get Rid of PMI Without Refinancing?
Yes — federal law forces PMI off conventional loans at 78% LTV automatically and at 80% on borrower request. Here's how to make your servicer do it.
Can I Do 5% Down on a Jumbo Loan?
Yes — 5%-down jumbo programs exist on the wholesale side up to roughly $1.5M-$2M with strong credit and reserves. Most retail lenders won't quote it.
What's the Difference Between Conventional and Jumbo?
Conventional fits inside the FHFA conforming limit ($832,750 baseline / $1,249,125 high-cost in 2026); jumbo is anything above. Different rule sets entirely.
Construction & new build
What's Click n' Close and Why Is It Cheaper?
Click n' Close is a one-time-close construction-to-permanent loan — single closing, locked rate, optional float-down. Why it costs less than build-then-refi.
What's a 203(k) Loan and Is It Worth It?
FHA 203(k) finances the purchase + renovation in one loan. Standard vs Limited, HUD consultant rules, contractor bids, 6-month rehab timeline.
Can You Do a One-Time-Close Construction Loan?
Yes — one-time-close (OTC) construction-to-perm is available across FHA, VA, and Conventional. Single closing, locked rate, subject-to-completion appraisal.
Refinance scenarios
When Does It Make Sense to Refinance?
Break-even = closing costs ÷ monthly P&I savings. Rate-term vs cash-out, MI removal as its own reason, and how a 'no-cost refi' actually works.
Can I Refi to Take My Ex Off the Loan After Divorce?
Yes — re-qualify on your income alone. Decree-documented equity buyouts price as rate-and-term; exceeding the decree converts the loan to cash-out.
Can I Cash-Out Refi to Pay Off Credit Cards?
Yes — 80% LTV cap, 6-month seasoning. Real question: cash-out vs HELOC math, total interest over life, and TCJA non-deductibility on non-acquisition use.
Property type & condition
Can I Get a Mortgage on a Condo With a Pending HOA Lawsuit?
Sometimes yes — depends on whether the suit is 'ordinary' or 'material adverse,' and which program. Non-warrantable lenders are the workaround.
Can I Get a Mortgage on a Manufactured Home With No Land?
Not a traditional mortgage — chattel loan instead. FHA Title I and specialty lenders are the main path; most retail lenders won't touch it.
Can I Buy a Duplex, Triplex, or Fourplex With FHA?
Yes — 3.5% down on 2–4 units if you live in one. 3–4 unit must pass self-sufficiency; 75% rental-income offset helps you qualify.
Closing costs
How Much Are Closing Costs Really Going to Be?
Closing costs typically run 2-5% of the loan amount, split across lender fees, title/settlement, prepaid escrow, and recording taxes. Here's how to read your Loan Estimate.
Can the Seller Pay All My Closing Costs?
Sellers can pay closing costs up to program caps: Conventional 3-9% by LTV, FHA 6%, VA 4% plus separate common closing costs. Here's how to use the cap.
Should I Buy Down the Rate With Discount Points?
Discount points only pay off if you keep the loan past the break-even date. Here's the math, the tax rules, and how lender credits work in reverse.
DTI & how much you can afford
What's the Maximum DTI I Can Have for a Mortgage?
Program ceilings: Conventional ~50%, FHA 56.99%, VA no fixed cap (residual-income test), USDA 41/44 — and why retail overlays cut you off sooner.
My Student Loans Are Deferred — What Payment Do You Use?
Fannie 1%/IDR, Freddie 0.5%, FHA 0.5%-or-actual, VA 5%/12 — the documentation lever can move DTI by hundreds per month.
Will Paying Off One Credit Card Lower My DTI Enough to Qualify?
Removing a $200 minimum frees ~$30–40K of loan capacity at 45% DTI — plus pay-to-zero-not-close, paydown-letter timing, and AUS re-run rules.
Pre-approval & underwriting
Pre-Qualified vs Pre-Approved: What's the Difference?
Pre-qual is a soft, self-reported guess; pre-approval is a full 1003 + credit pull + AUS + verified income and assets — and listing agents treat them very differently.
Underwriting Timeline: Contract to Clear-to-Close, Step by Step
A standard purchase runs 21–30 days from contract to CTC. Every milestone — AUS, appraisal, conditions, final UW, CD, TRID 3-day wait — explained.
Took a New Job During the Loan — What Happens?
Same line of work, salaried-to-salaried, is usually fine under Fannie B3-3.1-01. Comp-structure changes (salary to commission) are the real risk. How VVOE catches it.
Appraisal
What If the Appraisal Comes In Low?
Five recovery paths when an appraisal lands under contract — ROV, renegotiation, gap-split, cash to close, or walk under contingency.
Why Was My Appraisal So Different From Zillow?
Zillow Zestimates are AVMs built from public records; appraisals are USPAP inspections. Why both can be 'right' and which one a lender uses.
Can I Waive the Appraisal?
When Fannie Value Acceptance (PIW) or Freddie ACE applies, what it does and doesn't protect, and how it differs from an appraisal contingency.
Life events
Divorce Refinance: Can I Refi the House in Just My Name?
Removing an ex-spouse from a mortgage means a refi to qualify on your income alone — or a VA assumption when the loan is VA.
My Ex Is on the Mortgage but Moved Out — Am I Stuck With It?
A divorce decree doesn't remove your ex from the mortgage — only the lender can. Refi, sale, or formal assumption are the three real exits.
Changing Jobs in 2 Weeks — Should I Close First or Wait?
Close first when the VVOE hits before the job change and the new role is same-line-of-work W-2. Wait when comp structure or industry changes substantially.
Have a question we haven't covered?
Call or email Rich directly. The questions we get most often become the next answers we write.