Loan FAQ Library

Residential

What is a mortgage rate lock?

A rate lock is a lender's guarantee that you will receive a specific interest rate for a defined period — typically 30, 45, or 60 days. Once locked, your rate will not change eve...

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Residential

What is a cash-out refinance?

A cash-out refinance replaces your existing mortgage with a new, larger loan and you receive the difference in cash at closing. For example, if your home is worth $500,000 and you...

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Residential

How does mortgage insurance work on FHA loans?

FHA loans require two types of mortgage insurance. The first is an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, paid at closing or rolled into the loan....

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Residential

What is an FHA Streamline Refinance?

An FHA Streamline Refinance is a simplified refinance program available to homeowners with existing FHA loans. It is designed to lower your interest rate and monthly payment with m...

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Residential

Can I get a mortgage if I am self-employed?

Yes, self-employed borrowers can qualify for mortgages, but the documentation requirements are more extensive. Lenders typically require two years of personal and business tax retu...

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Residential

What is a reverse mortgage?

A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home equity into cash without making monthly mortgage payments. The most common type is a Home E...

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Residential

What is an assumable mortgage?

An assumable mortgage allows a buyer to take over the seller's existing loan, including its interest rate, remaining balance, and terms. This is especially valuable when the seller...

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Residential

What is a rate-and-term refinance?

A rate-and-term refinance replaces your existing mortgage with a new loan that has a different interest rate, loan term, or both — without taking any additional cash out. The goa...

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Residential

What is a construction-to-permanent loan?

A construction-to-permanent loan (also called a one-time-close or single-close loan) finances both the construction of a new home and its permanent mortgage in a single loan. Durin...

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Residential

How does a co-signer help with mortgage qualification?

A co-signer (or co-borrower) applies for the mortgage jointly with the primary borrower, and their income, credit, and assets are considered in qualification. This can help a borro...

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Residential

What is homeowner's insurance and is it required for a mortgage?

Homeowner's insurance (also called hazard insurance) protects your home and personal property against damage from fire, storms, theft, and other covered perils. Mortgage lenders re...

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Residential

What is a piggyback loan (80-10-10 mortgage)?

A piggyback loan is a combination of two mortgages taken simultaneously to avoid PMI or reduce the loan amount. The most common structure is the 80-10-10: an 80% first mortgage, a...

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Commercial

What is a commercial real estate loan?

A commercial real estate (CRE) loan is a mortgage secured by income-producing or business-use property — such as office buildings, retail centers, multifamily apartments (5+ unit...

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Commercial

What is DSCR and why do commercial lenders require it?

DSCR (Debt Service Coverage Ratio) measures a property's ability to cover its loan payments from its own income. It is calculated by dividing Net Operating Income (NOI) by annual d...

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Commercial

What is a commercial bridge loan?

A commercial bridge loan is short-term financing (typically 6 months to 3 years) used to 'bridge' the gap between an immediate need and permanent long-term financing. Common uses i...

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