Your Mortgage Questions,
Answered.

It depends on the loan program and purchase price. Down payment options range from 0% (VA, USDA) to 3.5% (FHA) to 3–20% (Conventional). But total cash to close includes more than the down payment — closing costs and prepaids add up. We'll walk you through the full picture before you start shopping.

FHA allows scores as low as 500 with 10% down, or 580+ for 3.5% down. Conventional typically works better at 620 or above. VA and USDA don't have strict published minimums but lenders typically want 580–620+. We'll tell you exactly what's possible based on your full file.

Yes, on most loan programs including FHA and Conventional. Gift funds need to come from an approved source (family member, employer, etc.) and be documented with a gift letter and bank records. We'll walk you through exactly how to handle it so underwriting goes smoothly.

Avoid opening new credit accounts, taking on new debt (car loans, credit cards), making large cash deposits without documentation, switching jobs, or missing any bill payments. We'll give you a specific do and don't list when you get started so nothing derails your approval.

You're not required to have one, but it's strongly recommended — especially for first-time buyers. A buyer's agent represents your interests and is typically paid by the seller. We can refer you to a trusted local realtor if you need one.

The Bayou Blueprint is our free on-demand homebuyer class that walks you through the entire process — credit, budget, loan selection, the offer process, and closing. Buyers who take it come to their first conversation far more prepared. It's free and available at thebayoublueprint.com.

Lenders look at your debt-to-income ratio — your monthly debt payments divided by your gross monthly income. But what you qualify for and what you're comfortable paying can be different numbers. We help you think through both so you're buying within a payment that actually works for your life.

Once your offer is accepted you go under contract. From there: we lock your rate, order the appraisal, collect final documents, and send your file to underwriting. You'll typically have an inspection period, then move toward closing. We stay in close contact throughout so you always know what's next.

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. That backing allows lenders to offer more flexible qualification standards — lower credit score minimums, smaller down payments, and more forgiving debt-to-income ratios than most conventional loans.

FHA guidelines allow scores as low as 500. With a 580+ score, 3.5% down may be possible. Scores between 500–579 typically require 10% down. Individual lender overlays may apply — we'll confirm your best path based on your full credit profile.

Yes. FHA loans include an upfront mortgage insurance premium (usually financed into the loan) and a monthly mortgage insurance payment. Unlike conventional PMI, FHA MIP typically lasts the life of the loan if you put less than 10% down. We'll show you the exact numbers and compare it to other options.

Possibly — FHA has a 203(k) rehab loan that lets you combine the purchase price and renovation costs into a single loan. It's more complex than a standard FHA purchase but can be the right tool for homes that need significant work before they'd qualify for a regular mortgage.

FHA appraisals check both the value and the basic safety and condition of the home. Common items flagged include roof condition, peeling paint, broken windows, missing handrails, working utilities, and any obvious hazards. If repairs are required, we'll walk you through options to keep the deal moving.

Sometimes. FHA condo eligibility depends on whether the condo project is on HUD's approved list. We can check the specific address early in the process so you don't waste time on a building that won't work.

Yes, with the right waiting period. FHA typically requires 2 years after a Chapter 7 bankruptcy discharge and 3 years after a foreclosure. Some exceptions exist depending on the circumstances. We'll tell you exactly where you stand based on your timeline.

VA loans are available to eligible active duty service members, veterans, and surviving spouses. Eligibility is based on your length and type of service. We can help you obtain your Certificate of Eligibility (COE) and confirm you qualify before moving forward.

Yes — eligible veterans can purchase a home with no down payment required. There's no loan limit for borrowers with full VA entitlement, though lenders may have their own overlays for very high loan amounts. It's one of the most powerful benefits available to those who've served.

The VA funding fee is a one-time fee paid to the VA that helps fund the loan program. It can typically be financed into the loan. The amount varies based on your down payment, loan type, and whether it's your first or subsequent use of the VA benefit. Some veterans are exempt — we'll check your specific situation.

No — one of the biggest advantages of the VA loan is that there is no monthly private mortgage insurance (PMI). The VA funding fee replaces it as a one-time cost, which typically still makes the VA loan more affordable than comparable FHA or conventional options over time.

Yes. VA entitlement can be restored after you sell your home and pay off the previous VA loan, or in some cases while you still have a VA loan on another property. We'll check your current entitlement status and explain what's available to you.

VA appraisals check value and meet Minimum Property Requirements (MPRs) — the home must be safe, structurally sound, and sanitary. Common items include roof condition, working utilities, no significant water damage, and adequate space. We'll prepare you for what to expect on the property you're considering.

A USDA loan is a government-backed mortgage offered through the U.S. Department of Agriculture that allows eligible buyers in rural and suburban areas to purchase a home with no down payment. It's income-based and area-based — both the buyer and the property must qualify.

USDA eligibility is based on the property's location within USDA-designated rural or suburban areas. Many areas that don't feel "rural" actually qualify. We can run the address through the USDA eligibility map to confirm before you get too far into the process.

Yes. USDA loans are designed for moderate-income buyers. Income limits vary by county and household size. In most cases the limit is 115% of the area median income. We'll check your household income against the limits for your specific county to confirm you're within range.

USDA loans have a guarantee fee (upfront, typically financed into the loan) and an annual fee paid monthly — similar to mortgage insurance but generally lower than FHA MIP. The combination still often makes USDA the most affordable option for buyers who qualify by location and income.

Yes, in some cases. The property just needs to meet USDA guidelines and be located in an eligible area. New construction USDA loans exist but the process can be more involved. We'll walk you through what's needed for your specific build situation.

USDA loans typically take 30 to 45 days to close once under contract, but can sometimes take slightly longer due to USDA's own review and commitment process. We account for this in your timeline so you and your realtor aren't caught off guard.

A conventional loan is a mortgage not backed by a government agency. It follows guidelines set by Fannie Mae or Freddie Mac. Conventional loans typically require stronger credit and a larger down payment than FHA, but they offer more flexibility on property types, loan amounts, and the ability to remove mortgage insurance once you have enough equity.

As little as 3% down for first-time buyers on some conventional programs. Most buyers put down 5–20%. Putting 20% down eliminates PMI entirely. The right down payment depends on your goals — we'll help you think through the trade-offs.

Most conventional lenders want a minimum score of 620, though better rates typically start at 740+. The higher your score, the lower your rate. We'll show you exactly how your credit score affects your monthly payment so you can decide if it's worth waiting to improve it first.

Yes — this is one of the biggest advantages over FHA. Once you reach 20% equity (either through payments or appreciation), you can request PMI removal. At 22% equity, lenders are required to cancel it automatically. We'll explain exactly when you'd hit that threshold based on your purchase price and loan terms.

A 30-year loan has a lower monthly payment but you pay significantly more in total interest over time. A 15-year loan has a higher payment but you build equity much faster and pay far less in interest. The right choice depends on your cash flow, goals, and how long you plan to stay in the home.

Yes. Conventional loans can be used for primary residences, second homes, and investment properties. Investment property loans typically require a larger down payment (15–25%) and come with slightly higher rates. For investors focused on rental income, a DSCR loan may also be worth exploring.

Refinancing makes sense when you can lower your interest rate, reduce your monthly payment, shorten your loan term, remove mortgage insurance, or access equity. A common rule of thumb is refinancing when you can drop your rate by at least 0.75–1%. We'll run the actual numbers for your situation to see if it pencils out.

A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan and what you owe comes back to you as cash. Common uses include home improvements, debt consolidation, and major expenses. The cash is typically tax-free since it's a loan, not income — but consult a tax advisor for your specific situation.

A rate-and-term refinance replaces your existing mortgage to get a better interest rate, change from adjustable to fixed, or shorten or extend your loan term. No cash comes out — the goal is improving the structure of your existing loan.

For a standard rate-and-term refinance, most lenders want at least 5–10% equity. For a cash-out refinance, most conventional lenders want you to keep at least 20% equity in the home after the cash out. FHA and VA have their own guidelines. We'll confirm exactly where you stand.

Most refinances close in 20 to 45 days. The timeline depends on how quickly documents come in, appraisal scheduling, and underwriting. We keep things moving on our end so you're not waiting on us.

Yes — refinances have closing costs just like purchases, typically 2–5% of the loan amount. Some lenders offer "no-closing-cost" refinances where costs are rolled into the rate or loan balance. We'll show you a clear break-even analysis so you know exactly how long it takes for the refinance to pay for itself.

Absolutely — and this is one of the best reasons to refinance. If your credit score has gone up significantly since your original loan, you may now qualify for a meaningfully lower rate. We'll run a side-by-side comparison of your current loan vs what you could get today.