Loan FAQ Library

Loan basics

What is the difference between a home equity loan and a HELOC?

Both a home equity loan and a home equity line of credit (HELOC) let you borrow against the equity in your home. A home equity loan provides a lump sum with a fixed interest rate a...

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Loan basics

What is a conforming loan?

A conforming loan meets the guidelines set by Fannie Mae and Freddie Mac, including loan size limits, credit requirements, and down payment minimums. For 2024, the conforming loan...

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Loan basics

What is a jumbo loan?

A jumbo loan is a mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency — $766,550 in most areas for 2024. Because jumbo loans cannot be purch...

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Loan basics

What is the difference between a mortgage broker and a direct lender?

A mortgage broker is an intermediary who shops your loan application to multiple lenders and earns a commission when a loan closes. They offer access to a wide range of loan produc...

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Loan basics

How does loan term length affect the total interest paid?

The longer your loan term, the lower your monthly payment — but the more total interest you pay over the life of the loan. On a $300,000 mortgage at 7%, a 30-year loan costs abou...

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Loan basics

What is a no-closing-cost mortgage?

A no-closing-cost mortgage allows you to finance or roll your closing costs into the loan rather than paying them upfront. The lender either adds the closing costs to the loan bala...

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Residential

What is an FHA loan and who qualifies?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, designed to help buyers with lower credit scores or smaller down payments. You can qualif...

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Residential

What is a VA loan and who is eligible?

A VA loan is a mortgage benefit for eligible veterans, active-duty service members, and surviving spouses, guaranteed by the Department of Veterans Affairs. VA loans offer zero dow...

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Residential

What is a USDA Rural Development loan?

A USDA loan is a zero-down-payment mortgage backed by the U.S. Department of Agriculture for buyers in eligible rural and suburban areas. There are two main programs: the Guarantee...

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Residential

What is a conventional loan?

A conventional loan is a mortgage not insured or guaranteed by a federal government agency — unlike FHA, VA, or USDA loans. Conventional loans follow guidelines set by Fannie Mae...

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Residential

What minimum credit score do I need for a home mortgage?

Minimum credit score requirements vary by loan type. FHA loans accept scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no official minimum but most lende...

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Residential

How long does the home mortgage approval process take?

The mortgage approval process typically takes 30 to 60 days from application to closing, though it can be faster or slower depending on loan type, lender, and borrower circumstance...

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Residential

What is a home appraisal and why is it required?

A home appraisal is an independent assessment of a property's market value conducted by a licensed appraiser. Lenders require appraisals to ensure they are not lending more than th...

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Residential

What is title insurance and do I need it?

Title insurance protects against financial loss from defects in a property's title, such as undisclosed liens, ownership disputes, forgery in the chain of title, or recording error...

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Residential

Can I buy a home with less than 20% down payment?

Yes, many loan programs allow down payments well below 20%. Conventional loans are available with as little as 3% down for first-time buyers (Fannie Mae HomeReady and Freddie Mac H...

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