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FAQs

What does my credit score need to be to qualify to purchase a home?

The minimum credit score to qualify for a home loan will depend on the type of loan program you choose and your unique situation.
How much of a down payment do I need?

Depending on the best program for your loan needs, it can be as little as $0. We will provide you with an "estimated" dollar amount based on your loan program and pre-approval amount. In addition, the cash to final close will depend on seller contribution, etc. Once you find a property, your mortgage loan originator will provide you with a complete loan estimate, which will detail the costs of the loan and will be based on the terms of the sales contract.
Does Kennedy Financial have access to any Down Payment Assistance programs?

Absolutely! This depends on several factors, such as where you would like to live and the annual income for your household.
What is the current interest rate?

The rate has variables depending on credit score, debt-to-income ratios, and loan amount. We can help determine this based on your individual situation.
Do you have any mortgage loan programs for buyers with little or no credit?

Yes. One example is our FHA program, where non-traditional credit can be used.
My spouse's credit isn't the best...what can we do? We need both incomes to buy a house; my spouse makes more money than I do.

Your loan is based on the middle of the three credit scores and on the lower of the two co-borrowers. Is there a possibility for another co-borrower to sign along with you?
I admit that I have a foreclosure in the past. How does this affect my buying a house now?

It depends on how long ago your foreclosure was. There is a grace period of three to seven years. If it has been over three years, you may qualify for first-time homebuyer assistance.
What programs do you have for first-time homebuyers?

We have several options available such as USDA, FHA, Conventional, and more!
How much will my final mortgage payment be?

We will quote you an "estimated" payment based on your pre-approval amount and what the payment consists of (PITI). Additionally, the homeowners insurance and property taxes are estimated based on average costs. However, once you decide on a property and we are able to verify the property taxes, as well as know how much you will be paying for the homeowners insurance, we will be able to determine a more accurately payment amount.
Will my mortgage payment ever change?

If you have a fixed-rate loan, the loan payment (principal and interest portion of your loan) would not change. However, if you escrow for property taxes and homeowners insurance, it may change as the cost for these items change. If you have private mortgage insurance (PMI), your payment normally decreases over time depending on which type of loan you have. The mortgage insurance on some FHA loans does not disappear. Homeowners association (HOA) dues are generally not escrowed into the payment and change over time.
What is the best way to buy a home with the least amount of money?

USDA home loan is an option for buyers on a strict budget. Some benefits are: • No down payment required • Closing costs payment can come from any source • Easy qualification • Lower upfront funding fee, along with a low monthly USDA fee
Is a home appraisal necessary?

On the majority of loans, an appraisal is required. An appraisal protects your investment and makes sure you are getting the home of your dreams at the right price. There are situations where the appraisal may be waived; so please contact your mortgage loan originator for details.
What is the difference between an appraisal and an inspection? Which do I need?

An appraisal by a professional appraiser is required for most loans. It is an opinion of the value of your home compared to others like yours in the same area. A home inspection is not always required. It is a wise investment for a home you intend to live in for many years. The inspector will look at the plumbing, electrical, HVAC, roof, the systems of the house, etc. and see what needs repair or replacement. Well and septic systems may be required if they apply to your home. A structural engineer report on a manufactured home is required to ensure the property meets safety requirements.
What is Mortgage Insurance and why do I have to pay it?

This is a type of insurance that protects against default on home loans. This can help you qualify for a loan that you might not otherwise be able to get. This is required on all loans where the down payment is less than 20%.
Is an escrow account required?

An escrow account for taxes and insurance is generally required for Conventional loans that have a loan-to-value over 80%. However, this is not the only factor in allowing escrows to be waived. Underwriting will make the final determination. If you were to fall behind on your property taxes, you could end up with a lien on your home – and eventually lose it. If your homeowners insurance lapsed and your home was seriously damaged, the lender's investment would be in jeopardy. An escrow account offers two benefits for you: • You are automatically putting money away for expenses each month instead of having to budget for a few big payments. • Someone else is managing those taxes and insurance bills for you.