Frequently Asked Questions

Q: What is the required down payment when financing a home?
A: It all depends on your loan type. Most buyers finance with an FHA loan and the minimum required downpayment is 3.5%. For buyers with more available cash, a conventional loan may be a better fit and the minimum can be 5% or 20%.

Q: What does "REO" stand for?
A: REO stands for Real Estate Owned and they are properties a lender acquires as the result of a foreclosure.. For these properties, the bank is the seller.

Q: Besides making my monthly mortgage payment, how can I build equity into my house?
A: When making your monthly mortgage payment, try to send a little bit more. This will go directly to the principal of the loan rather than the interest. Even an extra $50.00 per month can quickly build your equity, as well as knock years off of your loan.

Q: What are closing costs?
A: Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property.

Q: What are discount points?
A: Discount points are a type of point paid by the borrower to reduce the interest rate.

Q: What does it mean to be "upside down" on a mortgage?
A: It means that the seller owes more on the home loan than the home is actually worth. Also known as negative equity.