Home Buyer FAQs: Clear Answers to the Most Common Home Buying Questions

Down payments can range from 0% to 20%, depending on the loan type:

VA & USDA loans: 0% down
FHA loans: 3.5% down
Conventional loans: 3%–5% down
Many buyers also qualify for down payment assistance programs.

A mortgage pre-approval shows sellers you’re financially qualified and ready to buy.
It also helps you:

Know your real budget
Lock in stronger offers
Avoid surprises later

Minimum credit scores vary by loan:

FHA: as low as 580
VA: flexible (often 580–620)
Conventional: typically 620+
Higher scores usually mean better interest rates.

Closing costs typically range from 2%–4% of the purchase price and include:

Lender fees
Title & escrow fees
Appraisal & inspections
Prepaid taxes & insurance
Some programs allow seller credits to help cover these.

This depends on your income, monthly debts, credit score, interest rate, and down payment.
Most lenders look at your debt-to-income ratio (DTI) to determine affordability—not just your income.

Each loan type serves different buyers:

FHA: flexible credit & low down payment
VA: no down payment for eligible veterans
USDA: rural areas, 0% down
Conventional: strong credit, lower long-term costs
Choosing the right loan can save you thousands.

Yes. First-time buyers may qualify for:

Down payment assistance
Reduced interest rates
Closing cost help
State and local housing programs
Many buyers don’t realize they qualify.

Your monthly payment includes:

Principal & interest
Property taxes
Homeowners insurance
Mortgage insurance (if applicable)
A payment estimate is more accurate after pre-approval.