How much home can I afford?

To assess how much house you can afford, experts generally recommend that you spend no more than 28% of your gross monthly income on housing expenses and keep total debt, including housing, student loans, car payments, and credit cards, under 36% of your income. Various home loans come with different terms and rates, with some requiring lower down payments than others. Use our straightforward mortgage loan amortization calculator to estimate your payments and help [...]

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What is a first time homebuyer loan?

Generally, if you’ve never owned a home before, you are classified as a first-time homebuyer. Additionally, if you haven’t owned a primary residence in the past three years, you may still qualify as a first-time homebuyer. First-time buyers often benefit from significant financing options and flexibility, with down payments starting as low as 3%. FHA loans are especially popular among first-time buyers due to their low down payment requirement of 3.5%. [...]

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What is a mortgage loan pre-qualification?

Pre-qualification is the process of estimating how much you may be eligible to borrow before you formally apply for a loan. Unlike a pre-approval letter, which carries more weight in the home-buying process, a pre-qualification letter is less influential when making an offer. Buyers are strongly advised to undergo the pre-approval process for a more substantial advantage.

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How much money do I need to buy a house?

The costs of buying a home can vary based on factors such as the home's price, the type of mortgage, and property taxes. Here’s a summary of the costs you can expect: Earnest Money: To demonstrate your commitment to purchasing a home, you'll need to provide earnest money when making an offer, typically around 1% to 2% of the purchase price. Down Payment: The amount required for a down payment depends on the home’s [...]

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How to get approved for a FHA loan?

You must have a valid SSN and be a legal resident of the US. You should have a verifiable and stable income, a debt-to-income ratio below 50%, and a minimum down payment of 3.5% (which can vary based on your credit score). This down payment can be provided as a gift from a family member. The property must serve as your primary residence and be appraised by an FHA-approved appraiser, meeting specific standards. [...]

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What’s the downside of a FHA loan?

You must pay FHA mortgage insurance, which includes both an upfront fee as part of your closing costs and a monthly premium throughout the life of the loan. The property must meet strict requirements, being structurally sound and adhering to specific standards; thus, FHA loans may not be suitable for fixer-uppers. The property must be your primary residence, as FHA loans cannot be used for vacation or investment properties. Additionally, the maximum loan amount [...]

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