Qualification Questions

Yes, conventional mortgages allow a 3% down payment on an eligible primary residence for first time homebuyers. FHA's minimum down payment is generally 3.5% for borrowers with qualifying scores of at least 580, which you don’t need to be a first time homebuyer for. You will also need to account for closing costs and prepaid expenses unless another permitted source covers them, such as seller concessions or down payment assistance.

There is no single salary requirement. A lender compares reliable qualifying income with the proposed housing payment and other debts, while also reviewing credit and assets. The home price, down payment, taxes, insurance, and loan program determine how much income a specific purchase requires. There are some programs that have max income limits to qualify.

You do not always need two years with the same employer. I will review your overall employment and income history, including gaps and whether the new income is stable and likely to continue. A recent job change can be workable, especially with a clear employment history in the same field. Depending on your work history, and what loan programs you qualify for, we can use an offer letter to pre-approve you. We can also use future income if you have a job offer but haven’t started yet, there are ways to use the future income even if you don’t start the job until after moving into the home. Reach out to me and I can let you know specifics.

Yes, in some cases. A new salaried or hourly job may be usable once its start date and pay are documented; variable income such as commissions usually needs more history. Tell me about the change early so the income is evaluated correctly. We can also use future income if you have a job offer but haven’t started yet, there are ways to use the future income even if you don’t start the job until after moving into the home. Reach out to me and I can let you know specifics.

Yes. We can consider commission income when you have a documented history and it is expected to continue. They typically analyze earnings over time rather than qualifying you from your single best month.

Yes. A 1099 often means we will analyze you as self-employed, looking at tax returns, business expenses, and income stability rather than just gross deposits. Bank statement loan options may also be worth comparing if tax-return income does not reflect cash flow.

Yes. Student loans count in the debt review, but having them does not prevent mortgage approval. The payment a lender must use depends on the loan program and documentation, including whether the loan is in repayment or deferment.

Yes. The car payment is included with your other monthly debts when the lender determines what mortgage payment fits. Whether it limits your home price depends on your income, other obligations, and loan program.

There is no universal dollar amount. We compare required monthly debt payments, including the proposed mortgage, with qualifying gross income. Acceptable ratios vary by program, automated underwriting result, and other strengths in the application.

No. Final approval still depends on verified information, underwriting, the appraisal or property review, title, insurance, and any program conditions. Avoid major financial changes between pre-approval and closing. Always talk to me first before doing anything to avoid any issues later.

A new debt, job or income change, missed payment, reduced savings, or unexpected property expenses can change your eligibility. An appraisal, title, insurance, or property issue can also affect the particular purchase. Tell me about any changes before taking action.

Yes. Rates, property taxes, insurance, HOA dues, debts, income, and available funds all affect your qualifying purchase price. Ask for an updated payment and approval check on each home before making an offer.

A lender's approval measures program eligibility, not your full household spending or personal goals. Choose a payment that leaves room for savings, maintenance, and the life you want. If you let me know how much you feel comfortable affording each month, I can let you know what price range you should be looking at to stay within your desired budget. Then I will write your pre-approval letter for that amount you feel comfortable with vs the max amount you could be approved for.

It can affect the decision, especially if it is recent or involves a mortgage, but one late payment does not automatically rule out every loan. The program, timing, severity, and rest of your credit history matter. Reach out to me directly and I can take a look for you. You can always try calling the creditor directly and explain the situation and see if they will give you a one time pass and remove it from your credit report.

Collections do not automatically prevent every mortgage approval. Their type, balance, age, credit impact, and the loan program's treatment can matter. Have them reviewed before paying or settling anything solely for mortgage approval. Before paying them off, request a pay to delete where the creditor will remove the collection account from your credit report when paid in full. Make sure to get this in writing before sending any money. If you need help with this, let me know. If it’s a medical collection, it will automatically be removed from your credit report when you pay it off.

They can, but treatment depends on what appears on your credit report and the mortgage program's rules. Credit reporting practices for medical debt have changed over time. If you pay off a medical collection, it will automatically be removed from your credit report.

Not always. Some programs do not require every collection to be paid, and paying one may not immediately improve your score. Ask me to review the account and its effect before using money you may need at closing. Before paying them off, request a pay to delete where the creditor will remove the collection account from your credit report when paid in full. Make sure to get this in writing before sending any money. If you need help with this, let me know. If it’s a medical collection, it will automatically be removed from your credit report when you pay it off.

It can be 0% for an eligible VA or USDA purchase, 3% for some conventional primary-residence loans, or 3.5% for qualifying FHA borrowers. Your actual minimum depends on credit, occupancy, property, program, etc. Closing costs are separate.

Depending on the loan program, permitted sources may include your savings, documented proceeds from a sale, retirement accounts, bitcoin, eligible gifts, grants, or approved assistance. Funds must be documented, and each program has rules about who can provide them. Tell me where the money will come from in advance and I will let you know the best route to take.

Yes! Most loan programs allow gift funds from family members. A signed gift letter is needed. Depending on the loan program, donor bank statements might be needed. In some cases, if the gift donor pays the title company directly, we don’t need their bank statements because were not verifying the funds were transferred into the buyers bank account. Reach out to me to see which option is best depending on what loan program we are using.

Gift funds are money an eligible donor gives you to help with a home purchase without requiring repayment. We verify the donor, amount, transfer, and program eligibility. A gift is different from money borrowed from a relative. Its money that isn’t expected to be paid back. Typically gift funds need to come from an immediate family member or interested party. Reach out to me and I can let you know who would and wouldn’t qualify as a gift donor. Gift funds can be put towards the down payment and/or closing costs.

For a purchase, closing costs usually cannot simply be added beyond the loan's allowed financing limit. There are some loan programs that will allow this if the appraised price comes in higher than the purchase price. Seller credits, lender credits, and assistance may reduce cash needed; certain costs in some programs may be financeable. A refinance has different options, subject to equity and loan rules, but typically closing costs are rolled into the refinance.

Your down payment is the part of the purchase price you pay instead of borrowing. Closing costs are charges and prepaid items associated with the loan and home transfer, such as title services, appraisal, taxes, and insurance. Both affect the total cash to close amount needed.

There is no reliable flat amount for every Michigan home purchase. Costs vary by price, loan, title charges, property taxes, insurance, and closing date. Ask me for a detailed break down of the costs for you. Typically they are 2% - 6% of the purchase price on top of the downpayment.

Cash to close includes more than the down payment: closing costs, prepaid taxes and insurance, escrow setup, and any credits or earnest money already paid. It can change as final figures arrive. Ask me to walk through each line, when numbers change, you will get an updated loan estimate or closing disclosure showing these changes.

Some loan scenarios require documented reserves; others do not. Either way, keeping savings for repairs, moving costs, and an emergency is wise. Build the purchase around a comfortable payment and a realistic post-closing cushion.

Reserves are just money set aside in savings. One month reserves is one month of your mortgage payment.

MSHDA is the Michigan State Housing Development Authority. Its homeownership offerings include the MI Home Loan and, for qualifying borrowers, $10,000 in down payment assistance. Eligibility and program terms must be checked for your household and property. Reach out to me and I can let you know if you qualify.

MSHDA's MI 10K program can provide up to $10,000 toward eligible down payment, closing costs, and prepaid expenses when paired with a MI Home Loan. It is a separate, interest-free loan with deferred repayment. Education and other eligibility requirements apply. A MSHDA loan can be paired with a conventional, FHA, or RD loan.

Yes. The MI 10K assistance is generally a 0% deferred loan without a monthly payment, but repayment is triggered by events such as sale, refinance, payoff of the first mortgage, or the home no longer being owner-occupied.

A jumbo loan is a mortgage above the applicable conforming loan limit. Because it does not fit standard conforming limits, down payment, reserves, documentation, and pricing can differ by lender. The relevant limit depends on the year and county. As of 2026 the conventional loan limits is $832,750. Which means you can buy a million dollar home, put 20% down, and still get a conventional loan.

Yes, some manufactured homes can qualify for FHA, conventional, VA, or other financing if the home, foundation, land, title, and appraisal meet the relevant rules. Age, single- versus double-wide construction, and whether the home is permanently affixed can affect options. Manufactured homes do tend to cost more, so let me know in advance if youre wanting to purchase a manufactured home, because it could change your pre-approval amount. Single wide trailers are more risky than multi wide and could cause you to lose your approval altogether if qualification is tight.

Yes, if its current condition meets the chosen loan's requirements or you use an eligible renovation mortgage. Repairs that affect safety, soundness, or structural integrity may need resolution. Discuss the property and planned work with me before writing an offer. If any repairs are called out on the appraisal, they will need to be completed prior to closing.