FAQs

The largest loan you can qualify for is dictated by various factors including but not limited to: federal loan limits, home value, county loan limits, loan product type, down payment amount, income, and credit score. Please see my blog post on the subject.

Conforming or Conventional Loan Limits Vary by County, State, and Unit Count (1-4). These limits are set by the Federal Housing Financing Agency and are updated annually. You can find the link to these charts on Fannie Mae's website.

The chart below shows the baseline conforming loan limit for 1-4 units for 2025.

The chart below shows the max ceiling for high-cost areas in 2025. Every county has a different limit, to find the breakdown county, please refer to the fanniemae loan limit lookup table.

FHA has different loan limits that also very by county. The chart below shows the nationwide 'floor' but you need to go to HUD's website where you can look up the loan limit by county

If you need to get a larger loan amount there are options for jumbo loans, Non-QM loans, as well as conforming loans with "piggy-back seconds" which allow you to go up in loan limit as needed for higher priced homes.

Formerly known as the 'Family Opportunity Mortgage' program, you can use a conventional loan program to purchase:

• A home for your parents who cannot qualify for a mortgage
• A home for a disabled or handicapped child who is unable to qualify for a mortgage
• A home for a college bound child

Because these homes are considered primary purchases you are able to put 5% when purchasing a home for a parent or a disabled/handicapped child. For a college bound student, you can put as little as 3% down if the student co-signs or 10% down if they are not cosigned. Additionally, since these purchases are considered primary residences you can receive gift funds, as well as primary residence pricing. For more information see my blog post.

The short answer is yes, absolutely. In fact, you can qualify for a loan based on a new job offer up to 60 days before you start the new job. The longer answer is: it depends.

For most loan programs, including conventional and FHA, you need to demonstrate a 2-year history of employment. That employment does not need to be at the same job or even in the same field. Especially when the current income you are qualifying with comes from a salaried job, or full-time hourly wage with consistent hours. In many cases you can even use schooling to supplement your work history. For example: brand new attorney applies for a mortgage with a $70,000 annual salary. They have been on their current job for 1-month and do not have any previous work history because they were in law school. To document 'work history' in this case the attorney would need to provide dates of attendance of law school as well as provide transcripts to prove attendance in lieu of providing 2 years of W-2 forms.

This does not work for all types of income. If you are qualifying based on commission, bonus, variable wage, part time, or self-employed income your income will be viewed with a different lens. For more details check out my blog post on the topic.

For a first-time homebuyer (defined as not having owned a home in the previous 3 years) purchasing a primary residence there are options from as little as 0% down to 3.5% down. 

Please see my blog post on the subject for more details.

Downpayment requirements are determined by Loan Program & Occupancy 

For a 2-Unit duplex primary purchase you can put as little as 3.5% down FHA and 5% Conventional

For a 3-4 Unit Primary purchase you can put as low as 5% down with a conventional loan. Theoretically you can put 3.5% down with an FHA loan but you need to meet an FHA sustainability study, see blog post for more details.

Secondary homes, or vacation homes require a down payment contribution of 10% 

For an investment property minimum down payment is 15%. 

When determining a mortgage rate, we take into consideration 20 or more factors when searching for pricing. The main factors when determining a mortgage rate and an associated price for it (points and fees) include:

• FICO Score
• Loan Type
• Occupancy
• Down Payment %
• Loan Amount
• Monthly Qualifying Income

For conventional loans top tier (best pricing) is typically 780 FICO score, although when you put 40% down or more you get top tier pricing with a 640 FICO score (on primary purchases). Generally speaking, the loan amount isn't a significant factor for most lenders though there are plenty who will add additional overlays. Secondary homes and investment properties are priced higher than primary residences. If your income is below 80% of the Area Median Income you can qualify for discounted mortgage rates and mortgage insurance on primary residences - please see chart for income qualifying information. can see a full chart with Loan-Level Price Adjustments from Fannie Mae here. Please not that lenders and investors that sell to Fannie Mae and or Freddie Mac can add their own overlays and pricing adjustments on top of these.

FHA, USDA, and VA are all for primary residences only and when it comes to rate adjustments they aren't as sensitive compared to conventional loans for most lenders. This is typically why lenders often recommend an FHA loan for folks whose credit score is under 680 and have a smaller down payment as you generally can qualify for top tier pricing on both mortgage rate and mortgage insurance with a government loan. Of course, every situation is 'ad hoc' and you should make sure to thoroughly review your options with your loan officer.

The short answer is yes. All programs allow you to get a mortgage loan when you have student debt. As an installment debt the loan payment will be factored into your debt-to-income ratio. While student loans are considered a type of installment debt, they are also unique in that the monthly payment that is used in your debt calculation can very based on your loan program (Conventional, Jumbo, FHA, VA, USDA, and other portfolio products). In most circumstances if you are in some form of repayment plan and your monthly payment shows a specific non-zero amount on your credit report that number will be used as a factor in your debt-to-income ratio. If you are in deferment or zero is showing on your credit report for monthly payment:

• Conventional loans minimum of 0.5% of the total balance of the student loan will be used as monthly payment (example $25,000 student loan balance = $125 monthly payment for debt ratio calculations)
• FHA loans minimum of 0.5% of the total balance of the student loan will be used as monthly payment
• VA Loans 5% of the outstanding balance divided by 12 months (example: $25,000
  student loan balance x 5% = $1,250 divided by 12 months = $104.17 per month is the monthly
  payment for debt ratio purposes).
• USDA Loans  0.5% of the total balance of the student loan will be used as monthly payment (example $25,000 student loan balance = $125 monthly payment for debt ratio calculations)
• Physician Loans - there are specific products for physicians with large amounts of student debt. These products can ignore student debt for qualified physicians in certain situations for loan qualification purposes.

There are some unique circumstances where you might be able to use for your monthly payment even when you are in a deferment program. An example includes working for a non-profit and qualifying for forgiveness on student loans. This does not apply to all loan programs, please make sure you speak with a loan officer that has access to multiple options for your situation and can help you understand how your qualifying ratios will be determined based on your student loan situation. It is also worth noting that there are special programs for refinancing your student loans into your mortgage.

Potentially! When renting a room in your house that is not an ADU, we call this 'boarder' income. This income can be used to bolster your qualifying income for both conventional and FHA loans with a purchase or refinance transaction of a primary residence.

Conventional: If you are able to qualify for a conventional HomeReady loan (income limited to 80% of AMI) you can use boarder income to add up to 30% of your qualifying income. Borrowers will need to document that they have lied with boarder for 12 months and provide evidence of rent payment received 9 of the previous 12 months (averaged over 12 months). Typical types of documentation include: zelle, venmo, and cancelled checks with corresponding bank statements showing receipt.

FHA: For an FHA loan you need to provide a two-year history of boarder income on tax returns as well as an executed lease agreement. The borrower most also provide a written agreement from the boarder stating they intent to continue living with the borrower in the new residence if it is a purchase transaction.

The short answer is 'yes', for primary and secondary home purchases but 'no' for investment homes.

The longer answer is that it depends on loan type and occupancy. Below are the guidelines for Conventional and FHA loans. For jumbo and non QM loans their can be different requirements or flexibilities such as the need to provide a minimum contribution in addition to the gifts funds or the flexibility of using gifts funds on investment properties. Please reach out with your specific scenario and feel free to view my blog post on the subject.

Conventional Loans: primary and secondary home purchases gift funds are allowed and can cover all of the down payment, closing costs, prepaids, and reserves (if required). The one exception to this rule if you are putting less than 20% down on a 2-4 unit primary residence, a 5% minimum contribution is required from your own funds. Gifts can be used to cover all other costs. For HomeReady loans a 3% minimum borrower contribution is required. Both donor and receiver must sign a letter noting the amount, date, and that there is no expected repayment. Best practice for underwriting is to have the funds wired directly to escrow during the transaction. Gifts are not allowed on investment properties.

• Acceptable Donors 
  • a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or
  • a non-relative that shares a familial relationship with the borrower defined as a domestic partner (or relative of the domestic partner), individual engaged to marry the borrower, former relative, or godparent.
  • if the donor fits in one of these categories and is the seller it is considered a gift of equity.

FHA Loans gift funds can cover all of the down payment, closing costs, and prepaids for FHA loans when purchasing or refinancing a primary residence. Both donor and receiver must sign a letter noting the amount, date, and that there is no expected repayment. Best practice for underwriting is to have the funds wired directly to escrow during the transaction.

• Acceptable Donors 
  • the borrower’s relative
  • the borrower’s employer or labor union
  • a close friend with a clearly defined and documented interest in the
    borrower
  • a charitable organization
  • a governmental agency or public entity that has a program providing home
    ownership assistance to low- and moderate-income families, or first-time homebuyers.

Yes, but not all banks will offer it, and you will need to have filed your US and foreign income taxes for the previous two years. This blog post covers the topic in more detail, but the highlights are below.

Technically US expats living and working abroad can qualify for a conventional mortgage on a property in the US, but many banks do not want to underwrite these loans because of the complications of a foreign address and the difficulty of signing on US soil (in the US or at an embassy). The loan also needs to be manually underwritten because the underwriter has to verify translated documents and foreign currency. As a US expat living and working abroad you will need the following items (not an exhausted list) to qualify for a conventional loan

• Filed your US Taxes for the previous 2 years - it is customary to file form 2555 foreign earned income
• US credit score
• Maintain a Physical US mailing address (not a P.O. Box)
• US Passport
• The ability to sign final documents in a US embassy or on US soil.
  • A designated Power of Attorney is acceptable, but that document will need to be signed in a US embassy or on US soil as well
• Verifiable income including income documents that are translated by an approved 3rd party (if applicable).
• Ability to verify on time rent/loan payments for the previous 12 months

While conventional loans are complex and can take longer to close they allow US expats the ability to secure conventional financing under the same terms that normal US citizens have on secondary and investment properties for both purchase and refinance transactions.

If the conventional option does not work, there are also DSCR loans based on the cashflow of an investment property and other non-traditional options.

Yes, but you will need to document everything and have a CPA confirm your non-taxable income.

In certain circumstances medical waivers can be considered non-taxable income by the IRS so when your schedule C income is being evaluated by your lender, they might have trouble determining the total amount of income you receive because your CPA will exclude the bulk of your income. You will use this tax-exempt income on a conventional or FHA loan under these conditions:

• You can show a two-year history of adult foster care income on your taxes
• Your CPA can confirm the nature of your tax-exempt income
• You write a letter explaining to the underwriter that you will not be using your new primary home as an adult foster care center and will be using it solely as your primary residence.
• You cannot gross up your tax-exempt income

Technically a credit report last for 120 days but there are other items like paystubs and bank statements that expire after 30 days. It is important to remember that your lender will do a 'soft pull' just to pull closing to ensure you haven't taken out or significantly altered any of your debts. All of the items for pre-approval are very easy to refresh, so ultimately the pre-approval lasts until you change any of the following:

• Income - if you are fired or take a new job it could jeopardize your pre-approval, please make sure to confirm with your loan officer. If you are getting a new full-time job with a guaranteed salary it will likely have little to no impact on your pre-approval unless your income changes dramatically. If you change to self-employed or commission based/variable income from salaried income it will have a significant impact on your pre-approval.
• Monthly debt (student loans, credit card debt, auto loans, etc.) - your qualification amount is based on the amount of debt you had compared to your income. Any update to your monthly debts will impact the amount you can qualify for. If you take on any major new debts such as an auto loan it could severely impact your purchasing power.
• Funds For Down Payment - don't blow your down payment!
• Credit Score after 120 days we will need to renew your credit report/score so please keep it even, especially if you are close on your qualifying ratios.

As always it is very important to communicate any changes carefully with your loan officer to make sure your pre-approval is solid before making an offer.

There are lots of options for this situation with varying degrees of complexity.

•  Easy Low down and Recast Option: If your income is strong enough to qualify for multiple mortgages you can go with a low down-payment option (5% conventional) and then after you sell your departing residnece, you can 'recast' your new loan. Essentially you are making a large payment directly to the principal and paying a small fee (typically $200-300) to re-amortize your monthly payment based on the new loan balance. Your rate and term (30 years) will remain the same.
  • In this scenario you can use funds for a Home Equity Line of Credit for your down payment if needed.
• Cross Collateral Option: if you have a strong equity position in your current residence you can collateralize that property for a larger loan that will cover down payment and closing costs of the new house.
  • Example: $500,000 property owned with a $200,000 Mortgage. Purchasing a $600,000 Home. You would be able to get a new mortgage for a maximum of $625,000 which could cover all of the closing costs.
    • After you sell your previous home, you will use the equity pay down the new mortgage and the payment will be 'recast' to reflect the smaller loan balance
    • The monthly payment you would be able to qualify for is based on the new loan after it is recast, so income qualification wise it is fairly easy to tackle.
    • An appraisal and title work will need to be done on both homes.
    • The two properties are required to be in the same state.
• Bridge Loan Option: there are other similar type of bridge loan options where a line of credit on the departing residence is provided for downpayment on a new purchase.
• The Offer Option: if you are getting a new conventional loan and you cannot qualify for both your current and new home mortgages because of debt-to-income ratios there are a couple of companies that will give you a contract that provides a non-contingent cash offer on your current home. This will allow you to Make an offer without being contingent as will eliminate the mortgage liability you have on your current house. With these programs are, and entering a legally binding contract (that is bumpable) to sell your home so there is certainly some risk involved because the offer probably will not be top dollar. You are still allowed to sell your home by your own means.  If you have enough equity some options will allow you to pull funds for repairs.

Short answer: Yes, it is possible to purchase or refinance a home without an appraisal with a conventional mortgage or even a HELOC.

While it is possible it is not guaranteed, and the majority of mortgage transaction still require a full appraisal or independent 3rd party evaluation of your property. Please see my blog post on the subject for more detailed information.

Generally speaking, a previous appraisal in the Collateral Underwriter (CU) system makes a property eligible for a 'value acceptance or 'appraisal waiver'. These guidelines from Fanniemae Seller Guide cover the eligible and ineligible transactions. Guidelines for appraisal waiver were recently updated to allow value acceptance on purchases and refinances with a 3% down payment or equity position.

There are also Home Equity Lines of Credit that allow for automated valuations that don't require a traditional appraisal.

For more information, please see my blog post on the subject or reach out with your individual situation.

Oregon Housing and Community Services (OHCS) offers the Oregon Flex Progam which grants Down Payment Assistants to homebuyers who earn less than $125,000 purchasing a primary residence in Oregon. The progam features a reduced interest rate that is typically at or below market rates (it is further reduced for first-time homebuyers) regardless of credit score or down payment percentage. The down payment asssitance comes in the form of a repayable second lien that is either 4% of the loan amount or 5% of the loan amount if you meet certain qualifications. With this program you could theoretically purchase a home with $0 cash at closing (if you can negotiate seller paid closing costs). If you make less than 80% of the Area Median Income (AMI) the second lien is 'silent' meaning there is no payment associated with it. Please see my blog post for more details about the program or schedule a consultation if you are interested in seeing if you are qualified or if this program would work well for you.