Loan tips*
1. Who is applying for the loan? Whomever is going to be part of this loan (i.e. their name will be on the loan) will need to have the following available:
- Pay stubs from the last two work-pay cycles,
- The last two years of W-2s,
- Bank statements from the last 2 months,
- Rent history for the last 12 months (if you don't own your home),
- Photo ID (driver's license or passport)
2. Gift letter? If you are receiving $$ as a gift in the purchase of your home, please be prepared to submit a letter from the 'giver' stating the following:
- Name, address, phone number and relationship of person giving $$,
- The money amount and date it was given,
- Statement of 'no repayment or exchange of anything-in-kind' expected for gift,
- Signatures of person giving gift and borrower(s) with the date
*Additional helpful information can be found in our 'Scoop' blog after our contact page
Loan Types**
Conventional
Non-government loans - higher FICO score are required (620+) and possibly even higher (mid-700s) for a more competitive interest rate. Pro: less governmental red tape and higher loan limit ($766,550 as of 2024); Con: higher down payment (up to 20% of loan) and more scrutiny over your financial history
FHA
Governmental loan - which means less restrictive FICO score (500+). Pro: more lenient debt-to-income ratio, lower FICO score and lower down-payment; Con: more stringent appraisal process, property must meet FHA property condition and structure standards, property loan limit ($498,257 for single-family house in 2024)
VA
This may be your loan if you're an eligible active-duty military member, veteran or surviving spouse. Pro: no down payment or mortgage insurance, lower interest rates / fees, easier qualifications; Con: funding fee required and property restrictions
USDA
Governmental loan - a property loan limit ($398,600 in 2024) and household income limit exist plus the requested FICO score is commonly in the 600s. Pro: no down-payment (though closing costs are still in effect), competitive interest rate, relaxed credit requirement, good option for first time home-buyers, no prepayment penalty; Con: income and property restrictions
Jumbo
As the name suggests - these loans are for amounts greater than the price limit determined by Freddie Mac / Fannie Mae (i.e. the government does not back these loans). Due to the higher purchase price you may need a FICO score in the 700+ range to qualify. Pro: higher loan limit; Con: large down-payment (10% to 30% of loan), higher interest, more closing costs, clean / high credit score and not all properties will qualify
** the above $$ information is based on southeastern Oklahoma
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