Questions & Answers

Q) How much down payment do I need?

A) Generally 2 1/2  to 5%, but a larger down payment may improve your interest rate, or even qualify you for a mortgage if your credit wasn’t quite up to par.

A) The most popular program for this tactic is the Federal Housing Administration or FHA. FHA allows 100% gift funds for your down payment. The gift can be from a Non Profit Organization / Seller, Relative or Special Person, or can be collected through new innovative programs, like the Bridal Registry where couples receive money into a account that can be used for the down payment or from a new innovative program where the seller can make a gift of the down payment that could even include certain pre-paid expenses. Conventional loans are also available at 100%, and for those with lower credit scores combination 1st and 2nd mortgages can total 100%.

A) A popular tactic, which can be used in a wider range of programs, is to borrow from your 401K program. If you have a 401K program with your employer, you can withdraw without a penalty for your down payment and pay it back over a specified period. There are some drawbacks, the payment will be used in qualifying and your 401K account will not continue to grow as fast. Even with these drawbacks, it is often a smart move if this is your only option.

Q) I've been self-employed less than 2 years and have almost 20% to put down. Can I still buy a house?

A) Yes, we specialize in self-employed borrowers, and and in many cases a down payment is not required.

A) Depending on your down payment and job/income situation, we can probably help.

A) Some of our loans will allow as little as 3% to 10% down.

A) Yes, we can help you. We have several different programs that can deal with your situation.

Q) I'm relocating to another city by another employer. Does my spouse need to find a new job before we can qualify for a new home?

A) In many cases, our programs allow up to 75% of your spouse's previous income to qualify for your new home without them being currently employed.

Q) How do I know which type of mortgage is best for me?

A) There isn't a single, simple answer to this question. The right type of mortgage for you depends on many different factors: your current financial picture, how you expect your finances to change, how long you intend to keep your house, and how comfortable you are with your mortgage payment changing from time to time.

For example, a 15-year fixed-rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher.

An adjustable rate mortgage may get you started with a lower monthly payment than a fixed-rate mortgage, but your payments could increase when the interest rate changes.

The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with your 1st USA Loan Officer.

A) If you need to borrow money, home equity lines may be one useful source of credit.

Initially at least, they may provide you with large amounts of cash at lower interest rates then those charged on consumer debt, and they may provide you with certain tax advantages unavailable with other kinds of loans.

Our second mortgage loans may extend for as long as 30 years; others may require repayment in lesser period of time. You will need to discuss the repayment terms with your 1st USA Loan Officer, and select the one who that best suit your needs. For example, if you need to borrow $20,000 to make repairs on your home, you may not want a loan that requires you to repay the entire amount in one or two years because the monthly payments may be too high.