FREQUENT 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: What is the difference between a conventional loan and an FHA loan?
A: FHA stands for Federal Housing Administration. FHA insures loans that are made by approved FHA lenders, they do not lend directly to borrowers. FHA provides lenders with insurance in case a borrower defaults on their loan. The borrower pays for this insurance through MIP or mortgage insurance premium.
Conventional loans, on the other hand, are not guaranteed or insured by the federal government. Almost any type of loan that you take, if not issued by a government entity, is considered a conventional loan.
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