Mortgage questions, answered in plain English.

Less than most people think. Conventional loans start at 3% down for first-time and income-qualified buyers. FHA loans start at 3.5% down with a 580+ credit score. VA and USDA loans start at 0% down if you qualify. Minnesota Housing programs can add down payment and closing-cost help on top. You need 20% down only to avoid mortgage insurance, not to buy.

• VA or USDA0%
• Conventional, first-time3%
• FHA, 580+ score3.5%
• Conventional, standard5%
• No mortgage insurance20%
• Minimum down payment by loan. More is never required just to buy.

There isn't one number anymore. Conventional loans no longer have a fixed 620 minimum. Fannie Mae removed it in November 2025. The automated underwriting system now weighs your whole file: your score, down payment, income, debts and savings.

In practice most conventional approvals are still at 620 or better. With less than 20% down, the mortgage insurance company usually sets its own minimum. FHA allows 3.5% down at 580, and 500 to 579 with 10% down. Individual lenders can set their own minimums on any of these.

The best conventional pricing starts around 740. If your score is close to a cutoff, a few targeted moves over 30 to 60 days can change which loan you get.

• FHA, 10% down500
• FHA, 3.5% down580
• Conventional, most approvals620+
• Best pricing740+
• Where each door usually opens. Conventional has no fixed minimum now, and lenders can set their own.

A pre-qualification is an estimate based on what you tell a lender. A pre-approval means your credit has been pulled and your income and assets have been reviewed. Sellers and agents take a pre-approval seriously; in a competitive Twin Cities offer, it's the one that counts. (A pre-approval isn't a commitment to lend; final approval depends on the property and underwriting.) Full guide: how to get pre-approved.

Often the same day once your documents are in. Automated underwriting can return an initial approval within minutes. I issue pre-approval letters evenings and weekends, so an offer can go in tonight instead of Monday.

A mortgage application is a hard inquiry, which typically moves a score by a few points for a short time. Credit scoring treats multiple mortgage inquiries inside one 14-to-45-day window (depending on the scoring model) as a single inquiry. So if you've already applied somewhere else, applying with me doesn't stack a second hit.

Lenders look at your debt-to-income ratio: your monthly debts, including the new house payment, divided by your gross monthly income. Many loans allow up to roughly 45 to 50% with a strong file. What a lender will approve and what's comfortable for your family aren't always the same number, so we look at both. The mortgage calculator shows your ratio when you add your income.

Typically about 2 to 5% of the purchase price. That covers lender fees, the appraisal, title insurance and closing fees, and prepaid property taxes and homeowner's insurance. It also covers Minnesota's mortgage registry tax: 0.23% of the loan amount, or 0.24% in Hennepin and Ramsey counties. Your Loan Estimate lists every line within three business days of applying.

Yes, within limits. On a conventional loan the seller can contribute 3% of the price if you put less than 10% down. The cap is 6% with 10 to 25% down, and 9% with more. On an investment property it's 2%. FHA allows up to 6%. Your agent negotiates it as part of the offer.

Private mortgage insurance protects the lender when you put less than 20% down on a conventional loan. It isn't permanent. You can ask to remove it once your loan balance reaches 80% of the home's original value, and it drops off automatically at 78%. FHA's mortgage insurance works differently and usually stays for the life of the loan unless you refinance.

APR, the annual percentage rate, is the yearly cost of the whole loan. It combines the interest rate with certain lender fees and points, expressed as one percentage. The interest rate alone is what you pay on the money you borrow. I show you both on every option I price, so a low rate padded with points can't hide.

One point costs 1% of the loan amount and lowers your rate. Divide the cost of the points by the monthly savings to get your break-even in months. If you'll keep the loan longer than that, points can pay off. If you might sell or refinance sooner, usually not.

It's an account your loan servicer uses to pay your property taxes and homeowner's insurance for you. A portion of each monthly payment goes in, and the servicer pays the bills when they come due. You aren't hit with a large tax bill twice a year. The mortgage calculator shows your payment with escrow and with no escrow.

Earnest money is the deposit you send with your offer to show the seller you mean it. It's held by the title company or the listing brokerage, not the seller, and at closing it counts toward your down payment and closing costs. There's no set amount; in the Twin Cities it's often 1% to 3% of the price, and it's negotiable. If the deal ends for a reason your purchase agreement allows, such as a failed inspection or financing contingency met within its deadline, you typically get it back. Walk away for a reason the contract doesn't cover and the seller may keep it, so I keep an eye on those deadlines with you.

It depends on your credit score and down payment. With a score around 700 or higher and 5% down, conventional usually wins because its mortgage insurance can be cancelled. With a lower score or a smaller down payment, FHA often gets you in sooner. The Loan Guide compares them side by side.

A debt service coverage ratio loan qualifies a rental property on its rent instead of your personal income. If the rent covers the full monthly payment, you can qualify with no tax returns or W-2s. It's built for real estate investors, typically with 20 to 25% down. Full details, with the math and a DSCR calculator, are on the DSCR and bank statement loan page.

Yes. A conventional or FHA loan typically uses two years of tax returns. If your returns don't reflect what you actually earn, a bank statement loan qualifies you on 12 or 24 months of deposits instead. A 1099 loan uses your 1099 income. These are non-QM loans, a specialty many banks don't offer. How they work, what you need and the trade-offs are on the bank statement loan page.

Yes, and it's one of the best first moves in the Twin Cities. FHA allows 3.5% down on a two- to four-unit property you live in, and conventional allows 5% down. Rent from the other units can count toward qualifying. See the house-hack rule in the Loan Guide.

Eligible veterans, active-duty service members, and some surviving spouses. VA loans offer 0% down, no monthly mortgage insurance, and typically some of the lowest rates available. There's a one-time funding fee that can be rolled into the loan and is waived for many veterans with a service-connected disability. More in the Loan Guide.

A loan larger than the conforming limit, which is $832,750 for a single-family home in Minnesota in 2026. Jumbo loans have their own rules for credit, down payment and reserves. Pricing varies widely between lenders, which is exactly where having dozens of wholesale lenders to choose from pays off.

Yes, and there's more than one way to do it. If your income supports both payments for a short time, you can simply qualify with both. If it doesn't, a bridge loan or a home equity line on your current home can supply the down payment. Or your offer can be made contingent on your sale. Which one fits depends on your equity, your income and how competitive the market is for the house you want.

• Qualify with both payments
• Bridge loan
• Home equity line, opened before you list
• Offer contingent on your sale

A bridge loan is a short-term loan against the equity in your current home. It covers the down payment on the next home before the first one sells. It's typically paid off when your current home closes. Bridge loans cost more than a regular mortgage and terms vary by lender, so I lay the cost next to the alternatives before you choose.

There are three common ways. Sell first and bring the proceeds to closing. Open a home equity line of credit before you list, because lenders are reluctant to open one on a home that's already for sale. Or use a bridge loan. If your sale closes after your purchase, you can put less down at first. Then you recast a conventional loan with the sale proceeds, if your loan servicer offers it. A recast lowers the payment without refinancing. It isn't available on FHA, VA or USDA loans.

Usually yes, until the home is sold. There are two common exceptions. If your current home is under contract and the buyer's financing contingency has cleared, the lender can leave that payment out. And if you're keeping it as a rental, a signed lease lets 75% of the rent offset the payment on a conventional loan. Tell me which way you're leaning and I'll run it both ways.

Minnesota Housing's Start Up program is for first-time buyers and Step Up is for everyone else. Both pair a first mortgage with down payment and closing-cost loans of up to about $18,000, depending on the option. The First-Generation Homebuyers program offers up to 10% of the price, capped at $32,000 and forgiven over five years. It opens and closes as funding allows, so ask me what's open the week you're buying. All require a participating lender and a homebuyer education course.

Conforming loans go up to $832,750 statewide for a single-family home. FHA loans go up to $552,000 in the Twin Cities metro counties, including Hennepin, and $541,287 in most of the rest of the state. Limits are higher for two- to four-unit properties. The Loan Guide has the full table.

My office is at 5860 Baker Road in Minnetonka, and I live in Apple Valley. The west metro and the south metro are both home turf. I work across the whole Twin Cities and all of Minnesota, and I'm also licensed in Wisconsin, North Dakota, California and Georgia. Everything can be done by phone, text and e-signature. The office and the areas I serve.

The industry norm is 30 to 45 days. I can move quicker than that when your file and the property allow. I ask for every document up front and order the appraisal early, and a dedicated processing and underwriting team works the file from day one. Your timeline depends on the appraisal, the property type and how quickly documents come back. You'll get a realistic date from me on the first call, and I work to beat it.

1. Day 0Application and documents in
2. Same dayPre-approval letter, often within hours
3. Week 1Appraisal ordered, file to underwriting
4. Clear to closeClosing Disclosure sent, then a 3-business-day wait
5. Closing daySign, fund, keys

For most loans: your last 30 days of pay stubs, two years of W-2s, two months of bank statements, and a photo ID. Self-employed borrowers add two years of tax returns. Bank statement and DSCR loans use different documents entirely. I'll send you a short, specific list instead of a generic one.

• Last 30 days of pay stubs
• Two years of W-2s
• Two months of bank statements
• Photo ID
• Self-employed: two years of tax returns

Don't open new credit cards, finance a car or furniture, change jobs, co-sign for anyone, or move large sums between accounts without talking to me first. Lenders re-check employment and often credit right before closing, and a change can stall an approved loan.

• New credit cards
• A car or furniture loan
• Changing jobs
• Co-signing for anyone
• Big unexplained transfers

A rate lock freezes your interest rate for a set period, commonly 30 to 45 days (longer locks are available), while the loan closes. If rates rise, yours doesn't. Lock too early and you may pay to extend it; wait too long and the market can move. We time it to your closing date.

You have three options. Ask for a reconsideration of value with stronger comparable sales, renegotiate the price with the seller, or cover the difference with a larger down payment. A low appraisal is a negotiation, not the end of the deal.

Call me the same day. Many late denials come from one lender's own rules, not the loan program's, and a different lender can sometimes approve the same file. I wrote a full guide: what to do when a mortgage is denied before closing.

You sign the final loan documents, usually at a title company, your down payment and closing costs are wired, and the loan funds. You'll receive your Closing Disclosure at least three business days beforehand so there are no surprises. Then you get the keys, and with me, a cowboy hat and some confetti. See how we celebrate.

When the savings outrun the cost. Divide your closing costs by your monthly savings to get the break-even point in months. If you'll stay in the home past that, it's worth a serious look. Refinancing also makes sense to remove mortgage insurance, shorten your term, or pull out equity. Run it on the refinance calculator.

You replace your mortgage with a larger one and take the difference in cash, usually to renovate, consolidate higher-interest debt, or invest. Conventional and FHA cash-out loans typically go up to 80% of your home's value, and VA loans can go higher. If the goal is paying off credit cards, read using home equity to pay off debt first. When your current rate is low, a second mortgage usually beats refinancing.

A recast is when you pay a lump sum toward your principal and your servicer re-amortizes the loan over the remaining term. Your monthly payment drops; your rate and payoff date stay the same. It's usually a small servicer fee with no new appraisal and no credit pull, which makes it cheaper than a refinance. Conventional loans usually allow it; FHA and VA loans usually don't. People use it after selling a previous home or getting a bonus. If your rate is low, a recast usually beats a refinance. If your rate is high, run both.

A loan the buyer can take over from the seller, at the seller's existing rate and balance, instead of getting a new one. FHA, VA and USDA loans are assumable with the lender's approval; most conventional loans are not.

The catch is the gap between the sale price and the loan balance. The buyer has to cover it in cash or with a second loan. Assumptions work best when the seller has a low rate and not much equity. If a listing mentions one, send it to me and I'll tell you whether the math beats a regular loan.

Yes. Once you have about 20% equity, refinancing from FHA into a conventional loan removes the mortgage insurance entirely. For many FHA buyers that's the plan from day one, and it's common two to five years in.

A bank offers its own loans under its own rules. As an independent broker with Edge Home Finance, I shop your file across dozens of wholesale lenders and place it with the best fit. You deal with me from start to finish. More in how to choose a mortgage broker in Minnesota.

Yes. Nathan Ta is NMLS #2458897, licensed in Minnesota, Wisconsin, North Dakota, California and Georgia, with Edge Home Finance, LLC (company NMLS #891464). You can verify any loan officer at NMLS Consumer Access. More about Nathan.

Text or call (952) 393-6551, or start the secure online application, which takes about 15 minutes. There's no pressure and no obligation, and I answer evenings and weekends.

Me, from the first text to closing day. I don't hand you to a call center or a rotating processor. You'll hear from me every week with where the file stands, and the same day anything changes, good or bad.

Yes. I come to the closing table, and the photos on this site are from those tables. If a closing is far enough away that I can't be in the room, I'm on the phone before, during and after. You'll have the final numbers from me before you sit down.

Usually, yes. Text a photo of pages 1 and 2 of the Loan Estimate. I'll compare it to what my lenders can do the same day, with no application and no credit pull. If I can beat it, you'll see by exactly how much; if I can't, you'll hear that from me plainly. More on getting a second opinion.

None on the conventional, FHA, VA and USDA loans I write; you can pay extra or pay the loan off any time. Some DSCR and other investor loans do carry a prepayment penalty for the first few years. I'll tell you before you apply, not at the closing table. It's also printed on page 1 of your Loan Estimate.

It depends on the lender, and I'll tell you the rules before you lock. Some of my lenders offer a one-time float-down if rates fall enough during the lock, often for a small cost; others don't. If you expect rates to fall, say so when we talk about timing and I'll place the loan with that in mind.

Probably, and it's normal. Most mortgages are sold to an investor or transferred to a loan servicer after closing. Your rate, payment and terms can't change because of a transfer, and you get written notice. By law, a payment sent to the old servicer in the first 60 days can't be treated as late. I stay your point of contact for questions no matter who services the loan.

The usual culprits are a slow appraisal, a title issue, a document the lender asks for late, or a credit change before closing. I ask for the complete document list up front so you're not asked twice, and I order the appraisal early. You get the closing numbers from me days ahead, so there are no surprises at the table.