• gian@pmrloans.com
  • 623-552-4191
Sign up now and get $600 in credits
Apply Now
logo-transparent
Apply Now

FAQs

Finding the right mortgage can feel overwhelming especially if you are doing it for the first time. Giancarlo Anduray has compiled answers to the most frequently asked questions about home loans, the mortgage process, loan programs, and what to expect from application to closing day.

Whether you are a first-time homebuyer, a veteran exploring VA loan benefits, or a homeowner considering refinancing, the answers below are designed to help you make confident and informed decisions. If you do not find the answer you are looking for, Giancarlo is always available to help  just reach out directly.

I haven’t filed my taxes. Can I still buy a house?

Yes — often. Missing or late returns do not automatically kill a purchase in Phoenix, but they change which program and which documents we use.

FHA / Conventional / VA: underwriters usually want IRS transcripts for the years the program requires. An extension or a recent filing can still work.

Non-QM (bank statement, DSCR, single-page P&L) was built for borrowers whose returns do not tell the full story. See the Non-QM hub and Mi Casa Tax Advisors.

Bring prior-year returns if they exist, 12–24 months of bank statements, and a target close date. Giancarlo Anduray, NMLS 1537433 · 623-552-4191.

An FHA loan is a government-insured mortgage backed by the Federal Housing Administration. It’s designed to help buyers with lower down payments, more flexible credit guidelines, and higher debt ratios compared to some other loan programs.

The minimum down payment is typically 3.5 percent if the borrower meets FHA credit requirements. This is a general guideline and depends on the overall loan profile.

FHA allows lower credit scores than many other loan types. Lenders review the full credit profile, not just the score, including payment history and recent activity.

Yes, in many cases. FHA does not require all collections to be paid off, but the type, balance, and history of the accounts matter.

Yes. FHA generally allows higher debt-to-income ratios than conventional loans, especially when there are compensating factors like stable income or cash reserves.

FHA allows many income types including salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, disability, and VA benefits, as long as they are properly documented.

FHA typically looks for a two-year employment history, but it does not have to be with the same employer. Gaps can be acceptable depending on the reason.

Yes. FHA allows 100 percent of the down payment and closing costs to come from approved gift sources such as family members.

Acceptable gift sources include family members, close friends with a documented relationship, employers, labor unions, charitable organizations, and certain government assistance programs.

Yes. FHA loans require both an upfront mortgage insurance premium and a monthly mortgage insurance payment.

FHA allows many income types including salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, disability, and VA benefits, as long as they are properly documented.

FHA typically looks for a two-year employment history, but it does not have to be with the same employer. Gaps can be acceptable depending on the reason.

Yes. FHA allows 100 percent of the down payment and closing costs to come from approved gift sources such as family members.

FHA allows single-family homes, approved condominiums, manufactured homes meeting FHA standards, and certain multi-unit properties.

FHA requires the home to be safe, sound, and secure. The appraisal evaluates health, safety, and structural integrity, not cosmetic issues.

Yes, through specialized FHA programs like renovation loans, but standard FHA loans require the property to meet minimum condition standards at closing.

FHA allows borrowers to qualify as soon as one year after Chapter 13 bankruptcy with court approval, and typically two years after Chapter 7, assuming re-established credit.

FHA generally requires a three-year waiting period after foreclosure, deed-in-lieu, or short sale, with some exceptions based on circumstances.

Yes. FHA loans are not limited to first-time buyers. However, FHA is intended for primary residences, and borrowers must meet occupancy requirements.

Yes. FHA allows non-occupant co-borrowers, such as family members, which can help strengthen the loan application.

FHA fouses on the overall risk profile, including credit history, income stability, debt levels, and the property itself, not just one single factor.

A USDA Guaranteed Loan is a mortgage program backed by the U.S. Department of Agriculture that helps eligible buyers purchase homes in designated rural and suburban areas with affordable terms.

Yes. USDA Guaranteed Loans allow 100 percent financing, meaning no down payment is required, as long as the borrower meets eligibility guidelines.

Eligibility is based on property location, household income, and creditworthiness. The home must be in a USDA-eligible area, and household income must fall within USDA limits.

No. Many suburban areas qualify. USDA eligibility often extends into areas just outside major cities, including parts of the Phoenix metro and surrounding communities.

USDA uses an official property eligibility map to determine whether a home qualifies. Eligibility is based on the property address.

USDA does not publish a strict minimum credit score. Lenders evaluate the full credit profile, including payment history, stability, and overall risk.

USDA allows salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, disability, and certain government benefits, as long as income is stable and documented.

USDA looks at total household income, not just the income of the borrowers on the loan. This includes income from all adult household members, even if they are not on the mortgage.

Income limits vary by county and household size. They are designed to support low- to moderate-income households and change periodically.

USDA loans can allow higher debt ratios depending on credit strength, income stability, and other compensating factors.

 

Yes. USDA loans require an upfront guarantee fee and a monthly annual fee, which is generally lower than FHA mortgage insurance.

Yes. USDA allows gift funds for closing costs and other eligible expenses, as long as the source is acceptable and properly documented.

Yes, in certain cases. The manufactured home must meet USDA requirements, be permanently affixed, and be located on owned land.

USDA requires the home to be safe, sanitary, and structurally sound. The appraisal focuses on livability and safety, not cosmetic issues.

Yes, USDA Guaranteed Loans may be used for new construction as long as the property meets USDA guidelines and is located in an eligible area.

USDA typically requires a three-year waiting period after Chapter 7 bankruptcy and at least one year of satisfactory repayment in a Chapter 13 plan, depending on circumstances.

USDA generally requires a three-year waiting period after foreclosure, deed-in-lieu, or short sale, assuming credit has been re-established.

Yes. USDA loans are not limited to first-time buyers, but borrowers must meet current eligibility requirements each time.

No. While many first-time buyers use USDA loans, repeat buyers can qualify as long as they meet income and occupancy requirements.

USDA focuses on household income eligibility, credit history, ability to repay, and whether the property meets location and condition guidelines.

A VA home loan is a mortgage benefit available to eligible veterans, active-duty service members, National Guard, Reserves, and some surviving spouses. The loan is backed by the U.S. Department of Veterans Affairs and designed to make homeownership more affordable.

In many cases, no down payment is required. Eligible borrowers can often purchase a home with zero down, as long as the purchase price is within VA guidelines.

The VA does not set a minimum credit score. Lenders review the overall credit profile, including payment history, recent activity, and stability.

No. VA loans do not require monthly mortgage insurance, which can significantly lower the monthly payment compared to other loan programs.

The VA funding fee is a one-time fee paid to help keep the VA loan program running. It can usually be financed into the loan and varies based on service type, down payment, and prior VA use.

Veterans receiving VA disability compensation and certain surviving spouses are typically exempt from paying the VA funding fee.

VA loans allow many income types including salaried, hourly, overtime, bonus, commission, retirement, disability, and VA benefits, as long as the income is stable and documented.

VA places a strong emphasis on residual income, which measures how much money remains after major expenses, rather than relying solely on debt-to-income ratios.

Residual income is the amount of money left over each month after paying housing expenses, debts, taxes, and basic living costs. VA uses this to help ensure long-term affordability.

Yes. VA loans allow gift funds for closing costs and, if applicable, down payment, as long as the source is acceptable and properly documented.

Yes. VA loan entitlement can be reused once a prior VA loan is paid off or entitlement is restored, assuming eligibility requirements are met.

VA loans can be used for single-family homes, approved condominiums, manufactured homes meeting VA standards, and 1–4 unit properties if the borrower occupies one unit as a primary residence.

Yes. VA appraisals ensure the property meets Minimum Property Requirements related to safety, structural integrity, and livability.

VA loans are intended for move-in-ready homes. Major repairs typically must be completed before closing unless using a specialized renovation option.

VA guidelines may allow eligibility two years after Chapter 7 bankruptcy and one year into a Chapter 13 repayment plan, depending on circumstances and credit re-establishment.

Yes. VA One-Time-Close construction loans allow eligible borrowers to finance construction and permanent financing into one loan.

Yes. Certain surviving spouses may be eligible for VA loan benefits, particularly if the veteran passed due to a service-related cause or while on active duty.

No. VA loans can be used multiple times and are not limited to first-time buyers, as long as entitlement and occupancy requirements are met.

VA looks at the borrower’s overall financial picture, including income stability, credit history, residual income, and the ability to sustain homeownership long-term.

It’s a single mortgage that finances the land purchase (if needed), the construction of a new home, and the permanent VA mortgage all in one loan and one closing.

Eligible veterans, active duty service members, National Guard and Reserve members, and some surviving spouses can use this loan to build a home.

In many cases, eligible borrowers can finance 100 percent of the land and construction with no down payment, just like a traditional VA purchase loan.

With a VA one-time close loan, you only close once and the loan automatically converts to a permanent VA mortgage when construction is done, eliminating a second approval and closing.

Yes. One-time close construction loans often lock the interest rate at closing and that rate carries into the permanent mortgage once construction is complete.

No. Like other VA loans, VA construction loans do not require monthly mortgage insurance, even with 0% down financing.

Yes. You can build stick-built homes, modular homes, and panelized homes as long as they meet VA and local code requirements.

Yes. You generally must work with a licensed, insured builder familiar with VA construction requirements. Borrowers acting as their own general contractor are rarely accepted.

You’ll need your Certificate of Eligibility (COE), income and credit documentation, detailed home plans, a construction contract, and builder credentials.

Construction funds are released in stages (draws) as the project progresses, with inspections or documentation confirming completed milestones before each draw.

Construction timelines vary, but most projects take several months. Lenders coordinate inspections and draw administration throughout the process.

Yes. The home must meet VA Minimum Property Requirements (MPRs) for safety, structural soundness, and livability at completion.

Yes. You can use the loan to build on land you already own or land you plan to purchase with the loan.

The VA funding fee may be financed into the loan, but other closing costs generally must be paid at closing.

Benefits include one closing, locked-in rate, no refinancing later, no mortgage insurance, and streamlined paperwork compared to two separate loans.

Yes. The borrower must still meet standard VA loan underwriting requirements for income, credit, residual income, and ability to repay.

Once the construction loan converts to permanent financing, you may be eligible to refinance later under VA refinance programs if you meet seasoning requirements.

Yes. An appraisal is based on project plans and projected finished value before construction begins.

Seller concessions are allowed on VA loans, but total credits are limited and negotiated within VA guidelines.

After final inspections and issuance of a certificate of occupancy, the loan automatically converts to the permanent VA mortgage with one payment structure and no second closing. 

A conventional loan is a mortgage that is not insured or guaranteed by a government agency like FHA or VA. It follows guidelines set by Fannie Mae and Freddie Mac and is one of the most common loan types used today.

Yes, but it can be as low as 3 percent for qualified buyers. Down payment requirements vary based on credit, income, and the loan program.

Conventional loans typically require higher credit scores than FHA or USDA loans. Lenders review the full credit profile, not just the score.

Yes. Many conventional programs are designed specifically for first-time buyers and offer low down payment options.

Mortgage insurance is required when the down payment is less than 20 percent. Unlike FHA, conventional mortgage insurance can usually be removed later.

Mortgage insurance can typically be removed once the loan balance reaches 80 percent of the home’s value, assuming payment history and other requirements are met.

Debt-to-income ratios compare monthly debts to gross monthly income. Conventional loans usually have stricter limits than FHA, but strong compensating factors may help.

Conventional loans allow salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, and other stable income sources with proper documentation.

Fannie Mae typically looks for a two-year employment history, but it does not have to be with the same employer. Career changes can be acceptable.

Yes. Self-employed borrowers usually need to show consistent income through tax returns and business documentation. Income trends are closely reviewed.

Yes. Gift funds are allowed, especially for primary residences. The amount allowed depends on the down payment size and the borrower’s own contribution.

Yes, but the condominium project must meet Fannie Mae approval guidelines related to finances, insurance, and ownership structure.

Conventional loans can be used for single-family homes, condominiums, townhomes, manufactured homes meeting guidelines, and 1–4 unit properties.

Yes. Non-occupant co-borrowers are allowed in certain situations, especially for primary residences.

Fannie Mae typically requires four years after Chapter 7 bankruptcy and two years after Chapter 13 discharge, depending on circumstances.

The standard waiting period is seven years after foreclosure, deed-in-lieu, or short sale, with limited exceptions.

No. Conventional loans can be used for primary residences, second homes, and investment properties, though requirements vary.

Assets are reviewed to ensure borrowers have funds for down payment, closing costs, and sometimes reserves depending on the loan type.

Fannie Mae focuses on credit history, income stability, debt levels, assets, and overall risk, not just one single factor.

Conventional loans can be a better option when a borrower has stronger credit, higher down payment funds, or wants mortgage insurance that can be removed later.

A Freddie Mac loan is a conventional mortgage that follows guidelines established by Freddie Mac. These loans are widely used for primary homes, second homes, and investment properties.