Question 1

What is the difference between FHA and conventional loans?

Accepted Answer

FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5% with credit scores of 580+, but require mortgage insurance for the life of the loan with less than 10% down. Conventional loans require a minimum 620 credit score with down payments from 3%, but PMI can be canceled once you reach 20% equity. FHA is generally better for buyers with lower credit; conventional rewards strong credit with lower long-term costs.

Question 2

Who qualifies for a VA loan?

Accepted Answer

VA loans are available to eligible veterans, active-duty service members, National Guard members, Reservists, and qualifying surviving spouses with a Certificate of Eligibility (COE) from the Department of Veterans Affairs. The VA does not set a minimum credit score, but most lenders require 580–620. VA loans offer $0 down payment and no private mortgage insurance.

Question 3

What is a jumbo loan?

Accepted Answer

A jumbo loan is a non-conforming mortgage that exceeds the conforming loan limit set by the FHFA — $806,500 in most counties for 2026, higher in designated high-cost areas. Jumbo loans typically require a credit score of 700+, a 10–20% down payment, and 6–12 months of cash reserves.

Question 4

What is a reverse mortgage?

Accepted Answer

A reverse mortgage, formally called a Home Equity Conversion Mortgage (HECM), allows homeowners age 62 and older to convert home equity into tax-free cash without selling the home or making monthly mortgage payments. Borrowers must continue paying property taxes, insurance, and home maintenance. The loan becomes due when the last borrower permanently leaves the home.

Question 5

When does refinancing make sense?

Accepted Answer

Refinancing typically makes sense when current market rates are meaningfully below your existing rate, when you've built enough equity to remove mortgage insurance, when you want to shorten your loan term, or when you need to access home equity through a cash-out refinance for renovations, debt consolidation, or other major expenses.

Question 6

What is a Non-QM loan and who qualifies?

Accepted Answer

A Non-QM (Non-Qualified Mortgage) loan is a home loan that uses alternative income documentation rather than traditional tax returns and W-2s. Common Non-QM programs include bank statement loans (12 or 24 months), DSCR loans for real estate investors qualified by rental income, P&L only loans, asset depletion loans, 1099 income loans, and foreign national loans. Non-QM is designed for self-employed borrowers, business owners with significant write-offs, real estate investors, and high-net-worth individuals whose tax returns don't reflect their true earning power. Down payments typically range from 10% to 25%, with credit scores starting around 620 depending on the program.

Question 7

What is a bridge loan and how does it work?

Accepted Answer

A bridge loan is short-term mortgage financing — typically 6 to 24 months — that bridges the gap between buying a new home and selling your existing one. It allows homeowners to tap the equity in their current home to fund the down payment or full purchase of a new property, then pay off the bridge loan when the existing home sells. Bridge loans enable buyers to make non-contingent offers in competitive markets and often close in 10 to 21 days. Real estate investors also use bridge loans for fix-and-flip projects and time-sensitive acquisitions where conventional financing is too slow.

Question 8

What is the bankruptcy waiting period to qualify for a mortgage?

Accepted Answer

Bankruptcy waiting periods vary by loan program. Conventional loans require 4 years from Chapter 7 discharge, or 2 years from Chapter 13 discharge (4 years from dismissal). FHA, VA, and USDA loans require only 2 years from Chapter 7 discharge, with Chapter 13 borrowers eligible after 1 year of on-time payments with court approval. Jumbo loans typically require 4-7 years. Non-QM loans offer the most flexibility, with some programs allowing financing as soon as 1 day out of bankruptcy with a higher down payment. Waiting periods generally start from the discharge or dismissal date.

Question 9

What is the maximum seller concession by loan program?

Accepted Answer

Maximum seller concessions vary by loan program and down payment. Conventional loans allow 3% with less than 10% down, 6% with 10-25% down, and 9% with 25%+ down (2% for investment properties). FHA allows 6% regardless of down payment. VA allows 4% in concessions plus unlimited standard closing costs paid by the seller. USDA allows 6%. Jumbo loans typically follow conventional limits: 3% / 6% / 9%. These caps apply to all seller-paid items including closing costs, prepaid expenses, and discount points.

Question 10

How long after foreclosure can I get a mortgage?

Accepted Answer

Foreclosure waiting periods depend on the loan program. Conventional loans require 7 years (or 3 years with documented extenuating circumstances). FHA and USDA loans require 3 years. VA loans require 2 years and may reduce remaining entitlement. Jumbo loans typically require 7 years. Non-QM programs offer flexibility with some lenders allowing financing as soon as 1 day out of foreclosure with stronger down payments. Re-established credit history with consistent on-time payments is essential regardless of the time threshold.

Loan Program	Chapter 7	Chapter 13	Notes
ConventionalFannie / Freddie	4 years	2 years from discharge 4 years from dismissal	Re-established credit and no late payments since BK.
FHAGovernment-insured	2 years	1 year of on-time payments (with court approval)	Extenuating circumstances may reduce Ch. 7 to 1 year.
VAVeterans Affairs	2 years	1 year of on-time payments (with court approval)	Extenuating circumstances may reduce Ch. 7 to 1 year.
USDARural Development	3 years	1 year of on-time payments (with court approval)	Extenuating circumstances may reduce Ch. 7 to 1 year.
JumboNon-conforming	4–7 years	4–7 years	Varies significantly by lender; reserves often required.
Non-QMAlt-doc programs	1 day – 2 years	1 day – 2 years	Some Non-QM lenders allow financing 1 day out of BK with higher down payment.

Loan Program	Primary < 10% Down	Primary 10–25% Down	Primary 25%+ / Investment
ConventionalOwner-occupied	3%	6%	9% / 2% (investment)
FHAGovernment-insured	6%	6%	6%
VAVeterans Affairs	4% (concessions) + unlimited closing costs	4% (concessions) + unlimited closing costs	N/A — primary only
USDARural Development	6%	6%	N/A — primary only
JumboNon-conforming	3%	6%	9%

Loan Program	Foreclosure	Short Sale / Deed-in-Lieu	Notes
ConventionalFannie / Freddie	7 years	4 years	Reduced to 3 years for foreclosure with documented extenuating circumstances.
FHAGovernment-insured	3 years	3 years	Extenuating circumstances may waive entirely. Borrower must be current at short sale.
VAVeterans Affairs	2 years	2 years	Prior VA foreclosure may reduce remaining entitlement.
USDARural Development	3 years	3 years	Federal debt (CAIVRS) clearance required.
JumboNon-conforming	7 years	4–7 years	Lender-specific overlays often apply; reserves typically required.
Non-QMAlt-doc programs	1 day – 3 years	1 day – 3 years	"1-day-out" programs available with stronger down payment and pricing.

Quick reference, when you need it.

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