Mortgage Basics: What You Really Need to Know Before You Buy

Buying a home ain’t just about finding the cutest house on the block—it starts with understanding your money moves. And if you don't know your FHA from your VA, don’t trip. I’m breaking it all down like we cousins on the porch talkin’ dreams and down payments.

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FHA Loan – For the Cousins Who Need a Little Grace

Perfect if your credit isn't perfect.✅ Down payment as low as 3.5%✅ Flexible credit requirements✅ Great for first-timers who need grace.✅ PMI Required: Yes (called MIP—Mortgage Insurance Premium)✅ Credit Score Needed: 580+ (some lenders go as low as 500 with 10% down)✅ Great for: Folks recovering from past credit issues or just starting fresh This is the loan most people refer to when they think "First Time Home Buyer". This loan product is very useful, but it is not your only option.

Best For: First-time buyers, credit rebuilding, lower income

✅ Down Payment: As low as 3.5%

Real Talk: If your credit is in the 500s or low 600s, this might be your best shot at getting approved.

VA Loan – For My Military Fam

For our veterans and active-duty fam. Veterans, active-duty service members, certain National Guard & reservists✅ $0 down payment✅ No private mortgage insurance (PMI)✅ Bonus: Lower interest rates, no max loan amount

Real Talk: This is one of the most generous loans out there. If you’ve served, don’t leave this benefit on the table.

USDA Loan – Country Livin’ with No Money Down

Best For: Buyers in rural or semi-rural areas (yes, some suburbs qualify!)

✅ Down Payment: $0 required✅ Credit Score Needed: Usually 640+✅ PMI Required: Yes (called a guarantee fee, but lower than FHA’s)✅ Income Limits: Household income must fall below a certain amount (varies by area)✅ You’d be surprised where this applies in Arkansas!

Real Talk: Cousin, you’d be surprised how many areas in Central Arkansas qualify. You don’t have to live on a farm! If you’re buying rural or on the edge of the city You’d be surprised where this applies in Arkansas!

Conventional Loan – For Buyers with Solid Credit

The OG loan with stricter requirements

Best For: Folks with decent savings, higher credit, and stable income

✅ Down Payment: 3% for first-time buyers; 5% for repeat buyers✅ Credit Score Needed: 620 minimum, 740+ for the best rates✅ PMI Required: Only if under 20% down—but it can be removed once you hit 20% equity✅ Bonus: Lower long-term cost if you qualify for better rates

Real Talk: This loan rewards good credit. If you've been putting in the work—clean credit, low debt—this is your chance to save big over time.

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🔑 How to Know Which One is for You

It depends on your:

• Credit score

• Job/income

• Savings

• Where you’re buying

You don't have to figure it out alone—this is where working with the right lender and realtor (ahem, that’s me) makes all the difference.

💼 Blueprint Tip: Get Pre-Approved First!

Before you fall in love with a house on Zillow, get your finances in order:

• 📎 Pay stubs + tax returns = ready

• 🧾 Check your credit (or grab my DIY Credit Repair Workbook if it needs a lil’ love)

• 📞 Connect with a local lender (I got people!)

CTA: Let’s make sure you’re ready. Book a free consultation with me or check out the Credit Repair Workbook now at https://www.mopara.realtor//product-page/credit-repair-and-financial-empowerment?utm_campaign=7470bfb4-9325-4674-ba18-fbce05e2d084&utm_source=so&utm_medium=mail&cid=80e17789-71d7-4b5c-b85f-0e512ee20573.

Cousin, the blueprint is here—let’s build your dream.