A mortgage is a loan used to purchase or refinance a home using the property itself as collateral. A mortgage is paid back with interest over a set term, typically 15 to 30 years.
The best mortgage for you depends on your financial situation, goals, and how long you plan to stay in the home. A Radiant Mortgage expert can help you explore options like FHA, VA, USDA, Conventional, and Jumbo loans to find the one that fits your needs.
Most lenders will look at your credit score, income, employment history, and the size of your down payment. Specific requirements can vary depending on the type of loan you choose.
The down payment amount depends on the loan type. Some loans, like VA and USDA loans, may require no down payment, while others, like conventional loans, may require as little as 3% to 20% of the home’s purchase price.
Pre-qualification is an estimate of how much you can borrow based on basic financial information you provide. It gives you an idea of your budget before you start house hunting.
The mortgage approval process typically takes 30 to 45 days but can vary based on factors such as loan type, documentation, and current market conditions.
An interest rate is the cost you pay for borrowing money. Your rate is determined by factors such as your credit score, loan amount, loan type, and current market rates.
Closing costs are fees and expenses you must pay to finalize your mortgage. These typically include appraisal fees, title insurance, attorney fees, and taxes. They usually range from 2% to 5% of the home’s purchase price.
PMI is required for conventional loans if your down payment is less than 20%. It protects the lender in case you default on the loan. Once you build 20% equity in the home, you may be able to remove PMI.
Yes, refinancing allows you to replace your current mortgage with a new one, potentially lowering your interest rate, changing the loan term, or accessing home equity. Our team can help you determine if refinancing is right for you.
To improve your credit score, focus on paying bills on time, reducing debt, and avoiding new credit inquiries before applying for a mortgage. A higher credit score often leads to better loan terms and rates.
A fixed-rate mortgage has the same interest rate for the life of the loan, providing consistent monthly payments. An adjustable-rate mortgage (ARM) has a rate that changes periodically after an initial fixed period, potentially leading to lower initial payments but varying rates in the future.
Our most popular loan for borrowers who qualify. Conventional loans offer more flexibility and options, but typically require a higher credit score and down payment.
A government-backed mortgage for low- to moderate-income borrowers in eligible rural and suburban areas, offering no down payment and competitive interest rates.
Down payment assistance loans to help homebuyers pay for a down payment and closing costs.
Radiant Mortgage also offers a variety of non-qualified mortgage loans, including Debt Service Coverage Ratio, Bank Statement, Stated Income, and P&L loans.
| Loan Type | Min. Down Payment | Credit Score Requirement | Loan Limit | Primary Use | Mortgage Insurance Required | Unique Features |
|---|---|---|---|---|---|---|
| Conventional | 3%-20% | 600+ | Conforming limits | Primary, secondary, investment | If less than 20% down | Flexible terms, various loan types |
| Jumbo | 10%-20% | 660+ | Exceeds conforming limits | High-value properties | No | Stricter qualifications for high-value homes |
| FHA | 3.50% | 540+ or 580+ manual |
FHA limits by county | Primary residences | Yes | Low down payment, flexible credit |
| VA | 0% | 540+ or 580+ manual |
VA limits by entitlement | Veterans, service members | No | No down payment, no PMI |
| USDA | 0% | 640+ | USDA limits by area | Rural properties | No | No down payment, rural eligibility |
| HELOC | Varies | Good to Excellent | Varies by equity | Equity access | No | Revolving credit line based on home equity |
| DPA | Varies | Varies | Varies | Down payment assistance | No | Assists with down payments |
| DSCR | Varies | Varies | Varies by property income | Investment properties | No | Focus on rental income for qualification |
| Bank Statement | Varies | 600+ | Varies | Self-employed borrowers | No | Income verified through bank statements |
| Construction | Typically 20% | Good to Excellent | Varies by project | Home construction | No | Covers cost of building new homes |
The process of gradually paying off a loan through scheduled payments of both principal and interest.
The total cost of borrowing, including interest and fees, expressed as a yearly percentage rate. It helps you compare loan costs.
A professional assessment of a property’s market value, typically required by lenders to ensure the home’s worth is sufficient for the loan.
A mortgage with an interest rate that may change periodically based on fluctuations in a corresponding financial index, potentially causing monthly payments to increase or decrease over time.
Fees and expenses paid by the buyer and seller at the closing of a real estate transaction. These typically include loan origination fees, title insurance, appraisal fees, and taxes.
A calculation used by lenders to determine how much of your income goes toward paying debts. It’s calculated by dividing your monthly debt payments by your gross monthly income.
The initial payment made toward the purchase price of a home, typically expressed as a percentage of the home’s price.
A third-party account where funds (like property taxes and homeowners insurance) are held until they are due. It ensures these expenses are paid on time.
The difference between the market value of your home and the outstanding balance of your mortgage. As you pay down your loan, your equity increases.
A mortgage with an interest rate that remains constant for the entire loan term, providing consistent monthly payments.
The percentage of a loan that is charged as interest to the borrower. This can be fixed or adjustable.
The ratio of the loan amount to the appraised value of the property, expressed as a percentage. A higher LTV means more borrowing relative to the property value.
Insurance required for conventional loans when the borrower’s down payment is less than 20%. It protects the lender in case of default.
A preliminary evaluation by a lender that determines how much you can borrow based on financial information provided. It helps you understand your buying power.
The amount of money borrowed for the mortgage, not including interest.
The process of replacing an existing mortgage with a new one, often to reduce the interest rate, change the loan term, or access equity.
A legal document proving ownership of a property.
The process where the lender evaluates your financial information to assess your eligibility for a mortgage loan and to determine the loan terms.
Our underwriting guidelines ensure that every loan is a responsible and well-suited financial decision. We assess factors like credit history, income, employment stability, debt-to-income ratio, and property value to offer you the best loan options while ensuring manageable mortgage payments. Our goal is to make the process smooth, while maintaining high standards to protect both you and your investment.
