Frequently Asked Questions
Have questions about Home Loans? You’re in the right place.
Frequently asked FHA questions
What is an FHA loan?
- An FHA loan is a mortgage insured by the Federal Housing Administration. It is designed to help low-to-moderate-income borrowers who may not qualify for conventional loans.
Do I get my loan directly from the FHA?
- No, FHA loans are provided by FHA-approved lenders, such as banks or mortgage companies. The FHA insures the loan, reducing the risk for lenders.
What are the benefits of an FHA loan?
Benefits include lower down payment requirements (as low as 3.5%), more lenient credit score requirements, and the ability to finance closing costs.
Are there any downsides to FHA loans?
- FHA loans require mortgage insurance premiums (MIP), which can increase the overall cost of the loan. Additionally, there are limits on the loan amount based on the area.
Can I use an FHA loan to buy an investment property?
No, FHA loans are intended for primary residences only. You must live in the home you are purchasing.
What credit score do I need for an FHA loan?
The minimum credit score for an FHA loan is typically 580, but some lenders may accept lower scores with higher down payments
Can I get an FHA loan if I have a bankruptcy or foreclosure in my history?
Eligible properties include single-family homes, multi-family homes (up to four units), manufactured homes, and condominiums that meet FHA requirements.
What types of properties are eligible for FHA loans?
Get an estimate for the amount you’ll be able to borrow, so you can confidently search for homes within your budget. With Pilgrims Mortgage, you can get pre-qualified in as little as three minutes with no impact to your credit score.
Frequently asked ITIN home loans questions
What is an ITIN loan?
An ITIN loan is a type of mortgage available to individuals who have an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number (SSN). These loans are designed to help non-U.S. citizens purchase a home
Who can benefit from ITIN loans?
ITIN loans are beneficial for non-U.S. citizens who do not have an SSN but wish to buy a home in the U.S. This includes individuals who are required to have a U.S. taxpayer identification number
What documentation is required for an ITIN loan?
Typically, you will need a valid ITIN, a passport, tax returns for the past two years, proof of employment for at least two years, and a minimum credit score (usually around 660)
What are the down payment expectations for ITIN loans?
Down payment requirements can vary, but they generally range from 15% to 20% of the home’s purchase price
Can I get an ITIN mortgage loan if I don’t have a credit history?
Yes, some lenders offer ITIN mortgage loans to borrowers without a traditional credit history. However, these loans may come with higher interest rates and additional requirements.
Can I refinance my ITIN mortgage loan?
Yes, refinancing is possible. It can help you secure a lower interest rate, reduce your monthly payments, or change your loan term
Can I use an ITIN loan to purchase an investment property?
Typically, ITIN loans are designed for owner-occupied properties. However, some lenders may allow you to use an ITIN loan to purchase an investment property
Frequently asked Foreign National questions
Can foreign nationals buy property in the U.S.?
Yes, foreign nationals can buy property in the U.S. There are no restrictions on the type or amount of real estate they can purchase
What financing options are available for foreign investors?
Foreign investors can access various financing options, including mortgages from U.S. banks, international lenders, and private financing. However, the terms and conditions may vary
Are there any tax implications for foreign nationals investing in U.S. real estate?
Yes, foreign investors must comply with U.S. tax laws, including property taxes, income taxes on rental income, and potential capital gains taxes upon selling the property.
What are the legal requirements for foreign nationals buying property in the U.S.?
Foreign nationals need to provide identification, proof of funds, and may need to establish a U.S. bank account. It’s also advisable to consult with a real estate attorney to navigate any legal complexities
How can foreign investors manage their U.S. properties?
Many foreign investors hire property management companies to handle day-to-day operations, tenant relations, and maintenance, ensuring their investment is well-managed even from afar
What are the best locations for foreign nationals to invest in U.S. real estate?
Popular locations include major cities like New York, Los Angeles, and Miami, as well as emerging markets with high growth potential
Are there any restrictions on renting out property owned by foreign nationals?
Generally, there are no restrictions on renting out property owned by foreign nationals. However, local regulations and homeowners’ association rules may apply
What are the benefits of investing in U.S. real estate as a foreign national?
Benefits include potential rental income, property appreciation, diversification of investment portfolio, and in some cases, eligibility for certain visa programs.
Frequently asked DSCR questions
What is a DSCR loan?
A DSCR loan is a type of mortgage that qualifies borrowers based on the cash flow generated by the property rather than their personal income.
How is the DSCR calculated?
The DSCR is calculated by dividing the property’s net operating income (NOI) by its debt obligations. A DSCR of 1.0 means the property generates enough income to cover its debt payments.
What is the minimum DSCR required to qualify for a loan?
Most lenders require a DSCR of at least 1.25, but this can vary depending on the lender and the specific loan program
Can I get a DSCR loan if I am not a U.S. citizen?
Yes, some lenders offer DSCR loans to foreign nationals, though there may be additional requirements such as higher reserves or lower loan-to-value (LTV) ratios
What types of properties can be financed with a DSCR loan?
DSCR loans can be used for various types of investment properties, including single-family homes, multi-family properties, and commercial real estate
Do DSCR loans require personal income verification?
No, DSCR loans typically do not require personal income verification, making them ideal for investors who may not have traditional income documentation
What is the typical loan-to-value (LTV) ratio for DSCR loans?
The maximum LTV for DSCR loans is usually around 75-80%, but this can vary by lender
Are there any reserve requirements for DSCR loans?
Yes, lenders often require reserves, which are liquid assets that can cover several months of mortgage payments. The exact amount can vary but is typically around six months of payments
Can I use a DSCR loan for short-term rental properties?
Yes, many lenders allow DSCR loans for short-term rental properties, though they may have specific requirements or restrictions
What are the benefits of a DSCR loan?
DSCR loans offer flexibility, no personal income verification, and the ability to qualify based on property income, making them attractive for real estate investors
Frequently asked VA Home Loans questions
What is a VA home loan?
A VA home loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) and is available to veterans, active-duty service members, and eligible surviving spouses.
Who is eligible for a VA home loan?
Eligibility includes veterans, active-duty service members, members of the National Guard or Reserves, and certain surviving spouses. Specific service requirements must be met.
What are the benefits of a VA home loan?
Benefits include no down payment, no private mortgage insurance (PMI), competitive interest rates, and easier qualification standards.
How do I apply for a VA home loan?
You can apply through any mortgage lender that participates in the VA home loan program. You will need a Certificate of Eligibility (COE), which can be obtained through the VA or your lender
How do I apply for a VA home loan?
You can apply through any mortgage lender that participates in the VA home loan program. You will need a Certificate of Eligibility (COE), which can be obtained through the VA or your lender.
Can I use a VA loan more than once?
Yes, you can use your VA loan benefit multiple times, provided you meet the eligibility requirements and have sufficient entitlement remaining.
What is a Certificate of Eligibility (COE) and how do I get it?
A COE is a document that verifies your eligibility for a VA loan. You can obtain it through the VA’s eBenefits portal, by mail, or through your lender.
Are there closing costs with a VA loan?
Yes, there are closing costs, but they are generally lower than those for conventional loans. The VA also limits the amount of closing costs that veterans can be charged.
Can I refinance a VA loan?
Yes, you can refinance a VA loan through the VA Interest Rate Reduction Refinance Loan (IRRRL) program or a cash-out refinance.
Can I use a VA loan to buy a second home or investment property?
VA loans are intended for primary residences only. They cannot be used to purchase second homes or investment properties.
What if I have a low credit score?
VA loans have more flexible credit requirements compared to conventional loans. While there is no minimum credit score set by the VA, most lenders require a score of at least 620.
Frequently asked closing costs questions
What is a VA home loan?
An annual percentage rate or APR is the amount of interest on your total mortgage loan amount that you’ll pay annually (averaged over the full term ofthe loan). Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees such asmortgage insurance, most closing costs, discount points and loan origination fees.
Who is eligible for a VA home loan?
All monies in your existing escrow account with your current mortgage lender will be refunded to you within 30 days of settlement on this refinance. Upon funding this new refinance, monies will be collected to fund your new escrow account, the amounts collected will be determined based on when next property tax payment and property insurance premium are due.
What are the benefits of a VA home loan?
Closing costs and fees come from a myriad of transactions that occur during the mortgage process. They include origination fees, required validationfees, title insurance and settlement charges, and recording and government fees. Typically, closing costs and fees calculate out to be around 2% – 5%percent of your total home cost, so plan accordingly.
How do I apply for a VA home loan?
Based on the timing of the settlement on this refinance, payments may be due for property taxes and property insurance within the period between the settlement date and the first mortgage payment due date on this new mortgage. These payments are collected as “Prepaids” at the time of settlement on this refinance to ensure timely payment. Monies collected to fund your new escrow account are to make all future property tax and property insurance payments.
What is the difference between Prepaids and the Escrow account?
Yes! Until the funding of your refinancing is done, you still are required to make your mortgage payments.
Finding the right loan can be a daunting process. We're here to assist.
Mortgage Options Tailored To Your needs
Learn about our company
Why Bluevella Mortgage?
When considering a mortgage partner, you want a team that will guide you through the process with expertise, care, and dedication. At Pilgrims Mortgage, we pride ourselves on providing exceptional service, tailored to your unique needs. Our experienced loan officers, work tirelessly to ensure a seamless and stress-free experience. We understand that every borrower is different, and we take the time to listen and understand your goals.
With Bluevella Mortgage, you can expect:
– Competitive rates and terms
– Personalized attention from experienced professionals
– Timely communication and updates throughout the process
– Assistance with technology and paperwork
– A stress-free and streamlined experience
Our commitment to excellence has earned us rave reviews from satisfied customers. We value relationships and strive to make your mortgage journey smooth and successful. Whether you’re a first-time homebuyer or a seasoned homeowner, we’re here to support you every step of the way. Choose Pilgrims Mortgage for your mortgage needs, and let us guide you to a better place!
Common Mortgage Terms
Adjustable-Rate Mortgage (ARM): A mortgage with an interest rate that can change periodically based on market conditions.
Amortization: The process of gradually paying off a mortgage through regular payments.
Closing Costs: Fees associated with the home-buying process, typically ranging from 2-5% of the purchase price.
Debt-to-Income (DTI) Ratio: The percentage of monthly gross income spent on debt payments, including the proposed mortgage.
Earnest Money: A deposit made by a buyer to demonstrate commitment to purchasing a property.
FHA Loan (Federal Housing Administration): A government-insured loan with more lenient credit and down payment requirements.
Fixed-Rate Mortgage: A mortgage with an interest rate that remains constant throughout the loan term.
Home Equity: The difference between the market value of a property and the outstanding mortgage balance.
Interest Rate: The percentage at which interest is paid on a mortgage.
Jumbo Loan: A mortgage exceeding conventional loan limits, typically $510,400.
Loan-to-Value (LTV) Ratio: The percentage of the home’s value borrowed, calculated by dividing the loan amount by the purchase price.
Mortgage Broker: An intermediary between borrowers and lenders who facilitates mortgage transactions.
Mortgage Insurance (MI): A policy protecting lenders against borrower default, often required for low down payments.
Net Operating Income (NOI): Gross income from rental properties minus operating expenses.
Origination Fee: A lender’s charge for processing a mortgage application.
Pre-Approval: A lender’s preliminary approval for a mortgage based on creditworthiness and income.
Qualifying Ratio: The percentage of income used to determine borrowing capacity.
Refinancing: Replacing an existing mortgage with a new loan, often to secure better terms.
Secondary Financing: Additional financing secured by the same property.
Title Insurance: Protection against errors or defects in property ownership.
Underwriting: The lender’s review and approval of a mortgage application.
VA Loan (Veterans Affairs): A government-guaranteed loan for eligible veterans.
Warranty Deed: A document transferring property ownership with guarantees.
X-date (Maturity Date): The final payment date of a mortgage.
Yield Spread Premium: Compensation paid to mortgage brokers for securing favorable interest rates.
Zero-Down Mortgage: A mortgage requiring no down payment, often reserved for specific government loans.




