Frequently Asked Questions

Some of our most Frequently Asked Questions. If you don't see an answer to your question below, please let us know!

#1 Q: What is a Fico score?

A: FICO score is a credit score derived from the credit model developed by Fair Isaac Corporation. The FICO score is the best-known credit score in the United States, and a version of the FICO score calculated by all three of the major credit bureaus from reported information. A higher FICO score indicates better credit, and a FICO score below 600 is considered poor. The most important factor in determining a FICO score is past payment punctuality. The percentage of credit limit used is another critical parameter in the FICO score models, with a penalty for using too much of available credit. These two factors are given a total weight of around two thirds in determining the typical individual’s FICO score. Other major FICO score variables include length of credit history and types of credit used. Bankruptcy, foreclosure, court judgments, and tax liens receive a strong FICO score penalty, especially when recent.


#2. Q: What is APR?

A: The Annual Percentage Rate (APR) is the total cost of financing over the life of the loan, expressed as an annual rate. The Interest rate, or Note Rate, is the cost you will pay each year to borrow the money. The APR includes not just the cost of the interest, but other items like origination points, mortgage insurance, and other costs of obtaining the loan. For this reason, the APR is usually higher than the Note Rate, but that is not always the case, especially with Adjustable Rate Mortgages (ARMs).

#3. Q: What is a FHA Loan?

A: An FHA loan is a government mortgage that is insured by the Federal Housing Administration (FHA). These loans have been insured by the FHA since the creation of the agency in 1934. Since then, various Housing and Community Development Acts have been passed which have slightly altered the laws regarding FHA loans. FHA loans have been particularly helpful for individuals who otherwise would not have been able to secure a loan from another source due to low income or high risk. The Mortgage Insurance Premium (MIP) fee is a charge to the borrower to secure a loan from FHA. There is a one-time, up-front MIP payment as well as a monthly recurring charge

#4. Q: What is included in Lender Fees?

A: Lender Fees are associated with closing on a mortgage and typically include application, commitment and processing fees. These fees cover costs incurred by the lender to process, approve and complete the origination of the loan.

#5. Q: Do you deal with less-than-perfect credit and what is the lowest score you can work with?

A: Yes! We have lenders who work with borrowers across all credit profiles. Although we can’t guarantee that you’ll get a loan offer given the credit range you provide, the Mortgage Program is designed to match your loan request with available lenders and products available in their program areas. Your credit score should be at least 620 for Fannie Mae, 580 for FHA and NO-minimum for VA . However, we work with all clients to achieve better scores through our Re-score program.