Home Buying Process

Buying a home is an exciting time, but it can also be stressful. This is one of the most important purchases of your life that can require a lot of time. Our goal is to help you find the best program to fit your needs, while making the process quick and enjoyable. Statewide Mortgage offers same day pre-qualification, so you know right away how much you can afford. We will seamlessly walk you through the loan process, so you always know what to expect next.

Louisville mortgage

Loan Options

Conventional

Conventional loans are the most commonly used loan type. You will typically need at least 5% for a down payment. Anything less than a 20% down payment will require mortgage insurance, but with strong credit the insurance cost is often lower and can be eliminated over time. These loans are most commonly fixed in rate for 15 or 30 years.

Ideal for borrowers who...

Borrowers that have good to excellent credit, lower debt ratios and strong assets.

FHA

FHA loans are insured by the Federal Housing Administration and are known for having more liberal qualifying guidelines than other loan types. You’ll need a minimum of 3.5% down payment and those funds can be gifted by family member. Upfront and monthly mortgage insurance is required. These flexible loans are most commonly fixed in rate for 15 or 30 years.

Ideal for borrowers who...

First time homebuyers, low-to-moderate income borrowers with lower-to-good credit, higher debt ratios and lower cash reserves.

FHA HUD REO $100 Down

The FHA $100 down program allows the borrower to purchase a HUD REO property with FHA-insured financing and a minimum down payment of $100. Basically, a HUD home is a home that was foreclosed upon and previously had an FHA-insured mortgage. It’s not uncommon for foreclosed properties to need repairs and this program can be combined with the FHA 203K or the FHA 203B repair escrow loans.

Ideal for borrowers who...

First time homebuyers, low-to-moderate income borrowers with lower-to-good credit, higher debt ratios and lower cash reserves for a down payment.

USDA

USDA loans are zero down payment mortgages offered to rural property owners (the definition of rural may be more flexible than you think). USDA loans are issued through the United States Department of Agriculture. Income and property restrictions apply. Upfront and monthly mortgage insurance is required.

Ideal for borrowers who...

First time homebuyers, rural homebuyers, low-to-moderate income borrowers with mid-to-good credit and lower debt ratios.

VA

VA loans are loans specifically designed for active-duty and military veterans and are insured by the US Department of Veterans Affairs. For most borrowers, they don’t require a down payment. The upfront funding fee can be financed into the loan and no monthly mortgage insurance is required.

Ideal for borrowers who...

Veterans, actively serving military personnel and surviving spouses of veterans with low-to-good credit, low-to-high debt ratios and a documented Certificate of Eligibility.

Loan Process

1

Get Pre-Qualified or Pre-Approved

Your Loan Officer will help you with this step based on your credit, your assets, and your work history.

2

Make an Offer

You and your realtor will make an offer on the home you want to purchase based on how much you have been pre-approved for. After your offer is accepted, you will...

3

Collect Documents

Tax returns, W2s and bank statements are all required before we can underwrite your loan. Your underwriter will review your file and provide a conditional approval based on the documents you provide.

4

Work through Underwriting

Once a conditional approval is provided, you’ll need to provide additional documents the underwriter has requested and once all conditions are cleared, a CLEAR TO CLOSE will be issued.

5

Closing

After the clear to close is issued, your closing will be scheduled. Due to governmental guidelines, you must review the Closing Disclosure three days prior to closing.

Loan Programs

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Features
Downpayment Requirements
Seller Concession Allowed
Required Credit Score
Upfront Mortgage Insurance
Monthly Mortgage Insurance
Income Limits
Area Restrictions
Features Conventional FHA FHA HUD REO $100 Down USDA VA
Downpayment Requirements > 3% 3.5% $100 0% 0%
Seller Concession Allowed 3% - 9% 6% 3% 6% 4%
Required Credit Score 620 580 580 580 580
Upfront Mortgage Insurance 1.75% 1.75% 1% See Grid Below
Monthly Mortgage Insurance > 80% LTV
Income Limits
Area Restrictions
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VA Funding Fees

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Downpayment
Disabled Veteran
Any
Veteran / Active Duty
0%
5% - 10%
> 10%
National Guard / Reserve
0%
5% - 10%
> 10%
Downpayment Fee - 1st Time Fee - Each Additional Use
Disabled Veteran Disabled Veteran
Any Exempt Exempt
Veteran / Active Duty Veteran / Active Duty
0% 2.15% 3.3%
5% - 10% 1.5% 1.5%
> 10% 1.25% 1.25%
National Guard / Reserve National Guard / Reserve
0% 2.4% 3.3%
5% - 10% 1.75% 1.75%
> 10% 1.5% 1.5%
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