HOME FINANCING / LENDING FAQ

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Down payments can range from 3% to 20%, depending on the loan type. Programs like FHA loans require as little as 3.5%.

Closing costs typically range from 2% to 5% of the home's price and include fees for appraisals, title services, and lender costs.

Yes, options like the Texas State Affordable Housing Corporation (TSAHC) offer down payment assistance and low-interest loans.

Most lenders require a credit score of 620 or higher, though FHA loans accept scores as low as 580.

EASY BUTTON: TALK TO MARK SMITH, MY GO-TO AUSTIN LENDER! You’ll need to provide financial documents like pay stubs, tax returns, and bank statements. A lender will assess your income, credit, and debt-to-income ratio.

Yes, as long as your debt-to-income ratio is within acceptable limits, typically under 43%.

Rates fluctuate based on market conditions, so working with a knowledgeable lender or realtor can help you secure competitive terms.

VA loans are for eligible veterans or active-duty service members, while USDA loans are for rural properties and have income limits.

Rate locks can protect you from rising rates during your home purchase. Consult your lender about the timing.

Employees: Typically, lenders require recent pay stubs, W-2s, and proof of consistent income.

Independent Contractors: Contractors must provide at least two years of tax returns, profit-and-loss statements, and bank statements to verify stable income.
Lenders evaluate both groups based on credit score, debt-to-income ratio, and financial history, but independent contractors may face more scrutiny due to fluctuating earnings. Working with a knowledgeable lender is essential to ensure you meet qualification requirements.