While the minimum score is typically 620, borrowers with higher scores (above 700) usually get better interest rates.

Borrowers frequently ask about low-down-payment options, which are more widely available for first-time buyers through special programs offered by Fannie Mae and Freddie Mac.

For some programs, first-time homebuyers can qualify with as little as 3% down. However, the 20% down payment is still the standard and is required to avoid PMI.

 Lenders generally want a DTI of 43% or lower, but may approve higher ratios (up to 50%) if the borrower has compensating factors, such as higher cash reserves or a stronger credit score.

Borrowers want to know the distinction, as pre-approval is a more thorough process that gives them more leverage with sellers.

Common documents include tax returns, pay stubs, W-2s, and bank statements.

The most common method is a 20% down payment. Borrowers also research other options, such as paying a higher interest rate instead of monthly PMI premiums or using a special low-PMI program.

Once a borrower has built up 20% equity (based on the original home value), they can ask their lender to cancel PMI. Lenders must automatically terminate it at 22% equity.

Homebuyers want an estimate of all fees involved, which typically range from 2% to 6% of the loan amount.

 Borrowers ask about paying points upfront to secure a lower interest rate.

The key differences are in credit score requirements, down payment minimums, and how mortgage insurance is handled. FHA loans are more lenient but have mortgage insurance for the life of the loan in most cases.

While a professional appraisal is almost always required, a home inspection is technically optional but highly recommended to protect the buyer.

 Yes, conventional loans offer greater flexibility in property type compared to government-backed options.