Answers to common mortgage questions

Traditional retail lenders build massive profit margins into their interest rates to pay for layers of internal labor—branch managers, processors, and corporate overhead. On top of that, they often charge administrative “junk fees” to boost their revenue. My LEAN model operates differently. By removing the bloated corporate labor structure, eliminating all lender junk fees, and pricing my services at a reasonable, transparent compensation level, I don’t have to overcharge or “double-dip” to cover heavy expenses. I simply take raw wholesale market pricing and pass the structural savings directly to you.

I am a fully independent, licensed mortgage broker operating across five states: Arizona, Idaho, Oregon, Washington, and Texas. Because my lean wholesale model is fully digital and streamlined, I can deliver the same zero-junk-fee pricing and rapid closing speeds whether you are buying a home in Portland, relocating to Dallas, or investing in Phoenix.

No. To review your initial scenario and provide accurate, transparent wholesale pricing, I can perform a “soft pull” on your credit. This gives us the exact data we need to structure your loan and run automated underwriting without putting a hard inquiry on your credit report or impacting your score. A hard pull is only required once you are officially under contract and we are submitting the final file to the lender.

No. A 20% down payment is a common myth. First-time homebuyers can qualify for a conventional loan with as little as 3% down. Repeat buyers can often qualify with just 5% down. While putting down less than 20% requires Private Mortgage Insurance (PMI), keeping cash on hand for investments or emergencies is often a smarter financial strategy.

A temporary buydown (like a 2-1 or 1-0 buydown) allows you to secure a lower interest rate for the first one to three years of your mortgage. The cost of this rate reduction is typically funded by seller concessions negotiated during the home purchase. After the temporary period ends, the rate adjusts to the permanent fixed rate you initially locked.

Yes. Unlike standard FHA loans, conventional PMI is not permanently attached to your mortgage. Once you have built 20% equity in your home—either through paying down the principal or natural market appreciation—you can request to have the PMI removed without needing to refinance the loan.

In addition to a monthly mortgage insurance premium, FHA loans require a one-time Upfront Mortgage Insurance Premium (UFMIP), currently set at 1.75% of the base loan amount. Most buyers choose to roll this fee directly into their total loan balance rather than paying it out of pocket at closing.

Yes. FHA guidelines are highly accommodating regarding gift funds. You can cover 100% of your 3.5% minimum down payment and closing costs using documented gift funds from a family member, close friend, or approved charitable organization.

FHA appraisers are required to ensure the home meets minimum safety, security, and structural soundness standards. They will flag issues like peeling paint (especially on older homes due to lead hazards), missing handrails, or exposed wiring. Sellers must typically repair these items before the loan can close.

Loan limits are set annually by the FHFA and vary by county. For 2026, the baseline conforming loan limit for a one-unit property in most areas is $832,750. High-cost areas have higher limits. If your loan amount exceeds the specific limit for your county, it is classified as a Jumbo loan.

Because Jumbo loans carry higher risk and are not backed by government agencies, lenders enforce strict reserve requirements. Depending on your credit profile and the specific wholesale lender, you will typically need to show between 6 to 12 months of mortgage payments (including taxes and insurance) held in liquid or easily accessible accounts after closing.

Yes. Many modern wholesale Jumbo lenders allow you to use RSUs and other complex compensation structures to calculate your qualifying income. The lender will review your vesting schedule and historical payout data to determine the usable income amount.

Yes, though the guidelines are stricter than for a primary residence. Wholesale lenders typically cap the maximum Combined Loan-to-Value (CLTV) lower on investment properties, and interest rates will be slightly higher to account for the increased risk.

No. One of the greatest benefits of utilizing a HELOC or HELOAN is that it functions entirely independently of your primary mortgage. You can tap into your home’s equity without touching or altering the historically low interest rate you may have locked in on your first mortgage.

A standard HELOC is split into two phases. The “draw period” (usually the first 10 years) allows you to borrow against the line of credit and typically only requires interest-only payments. Once the draw period ends, the “repayment period” (often 10 to 20 years) begins; you can no longer draw funds, and your monthly payments will increase to cover both principal and interest.

Yes. DSCR loans can be used to finance short-term rentals like Airbnbs or VRBOs. Instead of using a standard long-term lease agreement, underwriters typically evaluate the property’s income potential using short-term rental data platforms (like AirDNA) or an appraiser’s short-term rent schedule to calculate the cash flow ratio.

The Debt Service Coverage Ratio is calculated by dividing the property’s gross monthly rental income by its monthly debt obligations (Principal, Interest, Taxes, Insurance, and HOA fees). For example, if a property generates $2,000 in monthly rent and the total mortgage payment is $1,500, the DSCR ratio is 1.33. A ratio of 1.0 or higher is generally preferred, though some lenders allow lower ratios with larger down payments.

If a property is located in an area flagged by automated valuation models (like HouseCanary) as a “declining market” with sluggish days on market, non-QM underwriting guidelines typically enforce a 5% reduction in the maximum Loan-to-Value (LTV). For example, a maximum 80% LTV would drop to 75%, requiring the investor to bring more cash to close.

While DSCR loans do not require personal income verification, credit is still a factor. Most wholesale lenders require a minimum credit score of 660, though higher scores (700+) unlock significantly better interest rates and higher maximum LTV limits.