Facts You Should Know About the Mortgage Application Process

Having trouble getting your mortgage approved? Here is some helpful information you should know about the mortgage application process.

1. You can get a loan with as little as 3% on a Conventional loan, 3.5% down on an FHA loan & no money down on VA and USDA loans.

2. Minimum credit scores: Conventional- 620, FHA- 580, VA- 600, USDA- 620.

3. Down payment can be gifted from a family member or come from a retirement account.

4. Seller can pay closing costs 6% for FHA and USDA, 4% for VA and 3% for Conventional.

5. No rental history needed with a credit score over 620.

6. Two year wait after a Chapter 7 bankruptcy discharge for FHA and VA, 4 years for Conventional and 3 years for USDA.

7. No wait period after Chapter 13 bankruptcy for FHA, USDA, and VA providing trustee payments were made on time. Two year wait period after discharge or Conventional.

8. There is a 3 year waiting period after short sale for FHA and USDA. VA has a 2 year wait period. Conventional wait period is two years with 20% down, 4 years with 10% down and 7 years with less than 10% down.

9. Most medical collections can be left open.


  • Michelle Garofalo

    Michelle Garofalo is the guiding force behind MSC Enterprises, LLC, a prominent custom home builder and real estate developer in Monmouth County and Ocean County, New Jersey. With over 25 years in real estate development, her expertise extends from a successful career in the solar industry, where she managed over 75MW of projects. Co-founding Infiniti Energy, Michelle now oversees day-to-day operations and leads business development, ensuring a seamless journey for clients. Her meticulous approach and commitment to excellence are reflected in MSC's residential and commercial properties, known for their quality, durability, and energy efficiency.

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