Question 1

Do I need perfect credit to qualify for a mortgage?

Accepted Answer

No. Many programs allow for past credit challenges. VA and FHA are often more flexible. We review your whole profile, not just a score.

Question 2

Can I get a VA loan with no minimum credit score?

Accepted Answer

Yes. VA does not set a minimum score. We do not impose overlays and focus on residual income and ability to repay.

Question 3

What is residual income and why does it matter for VA loans?

Accepted Answer

Residual income is what’s left after taxes, housing, and debts. VA uses it to confirm affordability, helping many veterans qualify.

Question 4

How much can sellers contribute toward my costs?

Accepted Answer

VA allows up to 4% in concessions plus normal closing costs; FHA up to 6%; Conventional varies by down payment.

Question 5

What if I had a foreclosure on a VA loan?

Accepted Answer

You may still qualify. Some entitlement may be unrestored, which reduces your $0 down amount. We calculate what’s left.

Question 6

What happens if my VA loan was assumed by another buyer?

Accepted Answer

If the buyer didn’t substitute entitlement, yours may remain tied up. Liability release is not the same as entitlement substitution.

Question 7

Do FHA loans work for buyers with recent credit issues?

Accepted Answer

Often yes. FHA is more flexible than Conventional depending on timelines and compensating factors.

Question 8

How does a USDA loan work?

Accepted Answer

USDA offers $0 down in eligible areas with income and property limits. We verify both before you make offers.

Question 9

When do I need a Jumbo loan?

Accepted Answer

When the loan exceeds conforming limits (about $806,500 in most counties for 2025). Requirements are tighter but flexible.

Question 10

What if I’m self-employed?

Accepted Answer

Options include tax returns, bank statements, or asset-based income under Non-QM programs designed for self-employed borrowers.

Question 11

Can I use gift funds for my down payment?

Accepted Answer

Yes. Most programs allow family gifts. Rules differ by program; we’ll document them correctly.

Question 12

Do Reverse Mortgages mean the bank owns my home?

Accepted Answer

No. You keep title. Reverse mortgages allow eligible homeowners to access equity without required monthly payments.

Question 13

Can I combine a HELOC with my first mortgage?

Accepted Answer

Yes. Many keep a low first-mortgage rate and add a HELOC or second for renovations or consolidation.

Question 14

How fast can I close?

Accepted Answer

Most purchases close in about 30 days when docs are complete. Construction and Jumbo can take longer.

Question 15

What are discount points?

Accepted Answer

Prepaid interest used to lower the rate. On VA, customary discount points are outside the 4% concession cap; temporary buydowns count inside.

Question 16

What’s the difference between prequalification and preapproval?

Accepted Answer

Prequalification is an estimate from your info. Preapproval includes verified docs and credit, which strengthens your offer.

Question 17

Do you work with Down Payment Assistance programs?

Accepted Answer

Yes. We pair eligible DPA with FHA, Conventional, or USDA when allowed and verify program rules up front.

Question 18

Are you licensed everywhere?

Accepted Answer

We serve 49 states (all except New York) for purchase, refinance, and specialty loans.

J.D. Peck AREA MANAGER

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