Frequently Asked Questions

FAQs

Home Loan FAQs

Getting a mortgage comes with a lot of questions, and that’s exactly how it should be. This page covers the questions we hear most from buyers and homeowners, from how much you need for a down payment to how long it takes to close. If you don’t see your question here, reach out to a Bluprint loan officer directly.

Ready to get started? Contact a Bluprint Loan Officer. We’ll answer your specific questions and get your pre-approval underway.

 

Getting Started: Pre-Approval and What to Expect

What is the difference between mortgage pre-qualification and pre-approval?

Pre-qualification and pre-approval are often used interchangeably, but they’re very different and the difference matters a lot in a competitive market.

Pre-qualification is an informal estimate based on information you self-report. No credit check, no document review. It gives you a rough sense of what you might be able to borrow, but it carries little weight with sellers or real estate agents.

Pre-approval is a verified assessment. The lender has pulled your credit, reviewed your income documents, confirmed your employment, and issued a conditional approval letter with a specific loan amount. It tells sellers you’re a serious, qualified buyer, not just someone who thinks they might be able to afford a home.

In competitive markets where multiple offers on the same home are common, sellers routinely reject or deprioritize offers that come with only a pre-qualification. A full pre-approval letter from a reputable lender can be the deciding factor in whether your offer even gets considered.

Bluprint’s pre-approval process is thorough by design, because a strong letter protects you and gives you real negotiating power. What makes our pre-approvals stand out is that they are fully underwritten – giving you, the agents, and the sellers full confidence in your financing. This is a complete game changer and competitive advantage that will set you apart from other prospective buyers.

A mortgage pre-approval is a verified statement from your lender that you qualify to borrow up to a specific amount, based on a review of your income, assets, credit, and employment. It’s different from a pre-qualification, which is just an informal estimate.

In a competitive housing market, pre-approval isn’t optional. It’s the price of admission. Many sellers won’t consider an offer without one, and real estate agents won’t spend time showing you homes without confirmation you can get financed.

The pre-approval process at Bluprint typically involves:

  • Completing a loan application
  • Providing documents such as pay stubs, W-2s, bank statements, and ID
  • A credit check
  • Income and employment verification

In most cases our pre-approvals can be provided within 24 hours – so it’s a fast process here at BluPrint. Many lenders are not able to offer this type of speed and. 

Once approved, you’ll receive a pre-approval letter valid for 90 days showing sellers exactly how much you’re qualified to borrow. If your financial situation changes at any point, let your loan officer know immediately, as it can affect your approval status.

Most mortgage applications require the same core set of documents, though your specific situation (W-2 employee, self-employed, or investor) may require additional paperwork.

Standard documents for most applicants:

  • Two most recent pay stubs
  • Last two years of W-2s (or 1099s if self-employed)
  • Last two months of bank statements (all pages)
  • Government-issued photo ID
  • Most recent mortgage statement(s), if you own other property

If you’re self-employed own rental properties, you’ll also need:

  • Business tax returns for the last two years
  • A year-to-date profit and loss statement
  • Business bank statements

The most common delay in the mortgage process is a borrower not having documents ready to go. Bluprint provides a complete loan checklist when you start the process. Having everything organized upfront is one of the most important things you can do to keep your closing on schedule.

The minimum credit score you need depends on the type of loan you’re applying for. Here’s what most lenders look for:

  • Conventional loan: 620 or higher
  • FHA loan: 500 or higher
  • VA loan: 500 or higher
  • USDA loan: 500 or higher

A higher credit score almost always means a better interest rate. On larger loan amounts, even a small rate difference can add up to tens of thousands of dollars over the life of the loan.

If your score is below where you’d like it to be, the most effective ways to improve it are paying bills on time, reducing credit card balances below 30% of your limit, and avoiding new credit applications for at least six months before buying. A Bluprint loan officer can review your report and give you a realistic timeline.

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt payments. It’s one of the most important factors lenders use to decide whether and how much they’ll lend you.

How to calculate it: Add up all your monthly debt payments (car loan, student loans, credit cards, any existing mortgage) and divide by your gross monthly income. Multiply by 100 to get the percentage.

General DTI guidelines by loan type:

  • Conventional: typically 43% to 50% max
  • FHA: up to 56.99% with compensating factors such as strong credit or cash reserves
  • VA: no official cap for loan amounts up to $1.5mil, but a residual income assessment is required. 
  • Jumbo: usually stricter, often 43% – 50%

If your DTI is too high, the most effective fixes are paying down revolving debt (credit cards especially), increasing your income, or adding a qualified cosigner. Your Bluprint loan officer can review your DTI early and suggest the most impactful moves before you apply.

 

Down Payments, Assistance Programs, and PMI

How much do I need for a down payment on a home?

You don’t need 20% down to buy a home. That’s one of the biggest myths in real estate. Most loan programs require far less, and some require nothing at all.

Here’s a quick breakdown by loan type:

  • Conventional loans: as low as 3% down
  • FHA loans: as low as 3.5% down
  • VA loans (eligible veterans): 0% down
  • USDA loans (eligible rural areas): 0% down

Down payment assistance programs are available in many states and counties to help cover some or all of that upfront cost and BluPrint Home Loans offers several low or no down payment loan programs. The best way to know exactly what you need is to connect with a Bluprint loan officer who can look at your full financial picture and match you to the right program.

Yes – many states and local municipalities offer programs specifically designed to help first-time buyers cover down payment and closing costs. Availability and amounts vary by location, but there are typically several options worth exploring no matter where you’re buying.

Common types of assistance include:

  • Deferred-payment second mortgages: cover a portion of your down payment and closing costs with no monthly payments until you sell or refinance
  • Zero-interest closing cost programs: paired with an FHA or conventional first loan to eliminate out-of-pocket closing costs
  • State housing finance agency loans: 30-year fixed-rate mortgages through approved lenders like Bluprint, designed to pair with assistance programs
  • Local grants and forgivable loans: offered by cities and counties with their own eligibility requirements and funding limits

Most assistance programs require completion of a homebuyer education course, household income within program limits, and purchase of a primary residence. A Bluprint loan officer can quickly assess which programs you’re eligible for in your area.

PMI stands for private mortgage insurance: a monthly fee added to your loan payment when your down payment is less than 20% of the purchase price. It protects the lender in case you default, and it’s often one of the most misunderstood costs in homebuying.

Ways to avoid or eliminate PMI:

  • Put 20% or more down at purchase
  • Use a VA loan (VA loans never require  monthly PM)
  • Request PMI removal once you reach 20% equity (lenders must cancel automatically at 22% of the original purchase price on conventional loans)
  • Use a lender-paid PMI structure (you take a slightly higher rate instead of a monthly PMI payment – sometimes the better option depending on your situation)
  • Refinance out of PMI once your home value has increased enough

FHA loans use a different system called MIP (mortgage insurance premium), which stays for the life of the loan. Understanding the long-term cost difference between FHA and conventional mortgage insurance is one of the most important conversations to have with your Bluprint loan officer before choosing a loan type.

 

Loan Types: FHA, VA, Conventional, Jumbo, and More

What is the difference between an FHA loan and a conventional loan?

FHA loans are backed by the federal government and designed for buyers with lower credit scores or smaller down payments. Conventional loans are not government-backed and typically require stronger financial profiles, but they offer more flexibility in the long run.

Key differences:

  • Down payment: FHA requires 3.5% with 580+ credit; conventional as low as 3%
  • Credit score: FHA is more lenient (500+); conventional typically requires 620+
  • Mortgage insurance: FHA requires MIP for the life of the loan; conventional PMI can be removed once you reach 20% equity and have met the servicers payment history requirements. 
  • Loan limits: FHA has county-by-county caps; conventional conforming limits are higher in many areas

For buyers with solid credit and some savings, a conventional loan often makes more sense long-term because you’re not locked into permanent mortgage insurance. For first-time buyers with less-than-perfect credit or limited savings, an FHA loan can be a solid path into homeownership. Bluprint can run the numbers on both so you can compare real monthly payments.

Yes. Eligible veterans, active-duty service members, and surviving spouses can purchase a home using a VA loan with zero down payment and no private mortgage insurance. It’s one of the most powerful homebuying benefits available.

VA loans offer several advantages over other loan types:

  • No down payment required
  • No monthly mortgage insurance
  • Competitive interest rates, often lower than conventional loans
  • Flexible credit requirements
  • Limits on what closing costs you can be charged

Instead of PMI, VA loans include a one-time funding fee that varies based on your down payment, whether you’ve used the benefit before, and your disability status. Veterans with a service-connected disability rating of 10% or more are typically exempt from the funding fee entirely.

Bluprint’s team has extensive experience guiding veterans through the VA loan process from Certificate of Eligibility to closing. If you’ve served and aren’t sure whether you qualify, reach out. It’s worth checking.

No. Veterans with full VA entitlement have no maximum loan amount. Since the Blue Water Navy Vietnam Veterans Act went into effect in 2020, eligible veterans can finance a home at virtually any price point with zero down payment, subject to lender approval and their own financial qualifications.

A few nuances worth knowing:

  • If you’ve used your VA loan benefit before and haven’t fully restored your entitlement, loan limits may still apply to your remaining entitlement
  • Lenders still have their own credit, income, and DTI requirements. The VA guarantee doesn’t override those
  • Larger loan amounts still require the property and borrower to meet all VA guidelines

If you’re unsure about your entitlement status, your Certificate of Eligibility (COE) will clarify it and Bluprint can pull that electronically during the pre-approval process.

A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. In 2026, the standard conforming limit is $832,750, though high-cost counties have higher limits. Any loan above those thresholds requires jumbo financing.

What to know about jumbo loans:

  • They typically require a higher credit score (usually 680+)
  • Down payments are often 10 to 20%+
  • Well established credit history is typically required
  • Documentation of the last 12 – 24 months of housing payments will be required. 

 

Bluprint offers non-conforming jumbo loans up to $3.5 million. If you’re shopping for a higher-priced property, your loan officer can quickly determine whether you’ll need a conforming or jumbo product.

For most buyers who plan to stay in their home for five years or more, a fixed-rate mortgage offers the most predictability and protection against rising rates. An adjustable-rate mortgage (ARM) can make sense in specific situations, but it’s not right for everyone.

Fixed-rate mortgage is usually the better choice if:

  • You plan to stay in the home long-term (7+ years)
  • You want a consistent monthly payment for budgeting
  • You’re concerned about rates rising in the future

An adjustable-rate mortgage may make sense if:

  • You plan to sell or refinance before the initial fixed period ends (typically 5 to 7 years)
  • You expect a significant income increase or lump-sum payment
  • The ARM’s initial rate offers meaningful monthly savings you’ll actually use

ARMs are named for their structure. A 5/1 ARM is fixed for 5 years, then adjusts annually. They carry more risk if you stay longer than expected. A Bluprint loan officer can compare actual payment scenarios on both so you can make a fully informed decision.

Yes. USDA loans are available for properties in USDA-designated rural and some suburban areas across the country. They offer 100% financing with no down payment required, making them one of the most overlooked options in home financing.

Many people assume USDA loans are only for farmland, but that’s not accurate. Eligible areas include many smaller cities, suburbs, and communities outside major metro cores.

USDA loan basics:

  • Zero down payment required
  • Competitive interest rates
  • Income limits apply (household income must be at or below 115% of the area median income)
  • The home must be in a USDA-designated eligible area – check the USDA’s online eligibility map
  • Mortgage insurance is required, but typically lower than FHA MIP
  • Credit score of 500 or higher is required; 580 with zero down. 

Bluprint can verify property eligibility and income limits for any area you’re considering.

A home improvement or rehab loan lets you finance both the purchase price of a home and the cost of renovations in a single mortgage – one loan, one closing, one monthly payment. It’s a practical approach in markets where move-in ready homes at accessible price points are hard to find.

The most common options are the FHA 203(k) rehabilitation loan, the Fannie Mae HomeStyle renovation loan, and the Freddie Mac Choice Renovation loan  which rolls the purchase price and repair costs together into one loan. Bluprint offers these in addition to other home improvement mortgages on primary residences, second homes, and investment properties, based on the after-renovation value of the home.

A rehab loan can be a good fit if:

  • You find a home you love that needs significant updating
  • You want to buy in a desirable neighborhood where turnkey homes are priced out of reach
  • You’re looking at a home that needs repairs to pass appraisal

There are requirements around the scope of work, licensed contractors, and project timelines — so it’s more complex than a standard purchase loan. But for the right buyer and the right property, it can open doors that would otherwise be closed. Ask a Bluprint loan officer if this structure makes sense for what you’re looking for.

 

Refinancing

Should I refinance my mortgage right now?

Whether refinancing makes sense depends on your current rate, how long you plan to stay in the home, and what you’re trying to accomplish. There’s no universal right answer, but there are clear situations where it does and doesn’t make sense.

Refinancing likely makes sense if:

  • You can lower your rate by at least 0.75% to 1%
  • You can recoup closing costs within 2 to 3 years (divide your closing costs by your monthly savings)
  • You want to switch from an adjustable-rate to a fixed-rate mortgage
  • You want to tap home equity for renovations, debt consolidation, or other needs

Refinancing probably doesn’t make sense if:

  • You bought or last refinanced in 2020 to 2021 at rates below 4%
  • You plan to sell or move within the next two to three years
  • You can’t recoup closing costs within your planned stay in the home

Homeowners who bought in 2022 to 2023 at rates of 7 to 8% are among those most likely to benefit from exploring a refinance now. Bluprint offers a no-pressure rate analysis to help you run the actual numbers.

 

The Buying Process: Appraisals, Rates, and Closing

What happens during a home appraisal, and what if it comes in low?

A home appraisal is an independent assessment of a property’s market value, ordered by the lender after your offer is accepted. It’s required for most loan types to ensure the lender isn’t lending more than the home is actually worth. You typically pay for it (usually $500 to $800).

What an appraiser evaluates:

  • Recent comparable sales from the local market
  • Square footage, bedrooms, bathrooms, and lot size
  • Property condition, age, and upgrades
  • Location and neighborhood factors

In competitive markets, buyers often offer above asking price, which creates a real risk of a low appraisal. If the appraisal comes in lower than the purchase price, your options are:

  • Negotiate the price down with the seller
  • Make up the difference in cash (an appraisal gap)
  • Challenge the appraisal with documented evidence of better comparable sales
  • Walk away if you have an appraisal contingency in your contract

Never waive your appraisal contingency without fully understanding the financial risk. Your Bluprint loan officer can walk you through the numbers if a low appraisal occurs.

National rate benchmarks give you a general baseline. As of early 2026, the 30-year fixed national average is around 6.67% but your actual rate depends on your individual financial profile and can be higher or lower.

Factors that most directly affect your rate:

  • Credit score: A 780+ score typically unlocks the best conventional rates; every tier below costs more
  • Down payment: More equity at purchase means lower perceived risk and better conventional rates
  • Loan size: Jumbo loans may carry slightly different pricing than conforming loans
  • Loan type: VA loans often have rates below conventional; FHA rates are competitive but MIP adds to the overall cost
  • Loan term: 15-year fixed rates are typically lower than 30-year fixed
  • Points paid: You can buy down your rate at closing by paying discount points upfront

The most important thing you can do is shop multiple lenders and compare APR (annual percentage rate), not just the interest rate. APR includes fees and gives you a more accurate picture of total cost. Bluprint encourages every borrower to come in with questions and compare what we offer against whatever else you’re seeing.

The average home loan takes 30 to 45 days to close from the time your offer is accepted, but BluPrint is often able to close purchase loans in less than 20 days. That said, the timeline can vary significantly depending on loan type, property condition, how quickly documents are provided, and how busy the lender’s pipeline is.

Typical milestones:

  • Loan application submitted, disclosures sent
  • Appraisal ordered and completed
  • Processing: all documents gathered and reviewed
  • Underwriting review and conditional approval
  • Clear to close issued, closing documents prepared
  • Closing day: paperwork signed, keys received

The most common reasons closings get delayed: slow document response from the buyer, appraisal complications, or title issues. 

Bluprint is built to close fast – it’s one of the things we hear most from our clients. If you have a tight timeline due to a contract deadline, let your loan officer know from day one so the team can prioritize accordingly.

 

Self-Employed and Unique Situations

Can self-employed people get a mortgage?

Absolutely! Being self-employed doesn’t disqualify you from getting a mortgage. What it does mean is that you’ll face different documentation requirements than a traditional W-2 employee, and your qualifying income may be calculated differently.

Lenders typically use your income after deductions and before taxes from your tax returns to calculate what you can afford, which is often lower than your actual gross earnings. This is one of the most common frustrations for self-employed buyers who are legitimately profitable but write off significant business expenses.

What self-employed borrowers typically need:

  • Two years of personal federal tax returns (all pages and schedules)
  • Two years of business tax returns if filing separately
  • Year-to-date profit and loss statement prepared by a CPA
  • Two to three months of business bank statements
  • Evidence of business ownership such as a business license

The key is working with a lender experienced in self-employed loans, and starting the process early so there’s time to optimize your qualifying income if needed. Bluprint works with self-employed borrowers regularly and can map out your options in a first conversation.

 

Move-Up Buyers: Buying Before You Sell

What is a bridge loan and how does it work?

A bridge loan is short-term financing that lets you tap into the equity in your current home to buy your next one before you sell. Instead of waiting for your old home to close before you can make an offer on a new one, a bridge loan covers the gap so you can move forward on your timeline without being stuck in a holding pattern.

Here’s how it works in practice: the equity you’ve built in your current home is used to fund your down payment on the new one. You close on the new home, then sell the old one, and the bridge loan is paid off from the sale proceeds.

For homeowners who have built up significant equity but don’t have liquid cash for a second down payment, a bridge loan is often the most practical path to a smooth, non-contingent move.

The biggest advantage is competitive positioning. In most markets, offers contingent on selling a current home are less attractive to sellers, and in competitive situations they often lose outright. Buying before you sell lets you make a non-contingent offer, which can be the deciding factor in whether your offer gets accepted.

 

Beyond that, there are real practical benefits. You move once, with no temporary housing, no storage unit, and no scrambling between closings. You’re also not under pressure to accept a lowball offer on your current home just to hit a deadline. And because you’re not rushing the sale, you have time to properly prepare and stage your listing, which often results in a better final price.

No, and that’s exactly the problem this type of financing is designed to solve. The traditional sequence, sell first then buy, forces you into two moves, temporary housing, and a rushed sale under time pressure. With a bridge loan or buy-before-you-sell program, you purchase the new home first. Your current home sells on its own timeline under normal market conditions, and the bridge financing is paid off from the proceeds once it closes.

 

There are qualification requirements, including sufficient equity in your current home and meeting standard income and credit guidelines. A BluPrint loan officer can tell you quickly whether you’re a fit.

It’s a fair concern. The short answer is that it depends on how the financing is structured. Some buy-before-you-sell programs are set up specifically so you aren’t carrying the full weight of two mortgage payments simultaneously during the transition period, which is a big part of what makes them workable for most homeowners.

 

In a standard qualification, your debt-to-income ratio will factor in your current housing payment alongside your new one. Your BluPrint loan officer will run your full financial picture before recommending a path forward, so you’ll know exactly where you stand before making any commitments.

They’re related but not identical. A bridge loan is a specific type of short-term financing that uses your home equity to fund a new purchase before your current home sells. Buy-before-you-sell programs are a broader category that may include bridge financing as a component, but can also involve different structures, timelines, and features depending on the program.

 

What they have in common is the core goal: giving you the ability to buy your next home without making that purchase contingent on selling your current one. The right structure depends on your equity position, your timeline, and your financial picture. A BluPrint loan officer can explain the options available to you and help you figure out which approach fits your move.

 

Still Have Questions?

Every loan situation is different, and the best answers are specific to your income, credit, savings, and goals. If you didn’t see your question above, or if you want a straight answer for your specific situation, reach out to a Bluprint loan officer directly.

We’ll take a look at your full picture, tell you exactly what programs you qualify for, and help you move forward with confidence.

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