Mortgage FAQs

A broker shops your loan across dozens of wholesale lenders with one application and one credit pull. A bank can only offer its own products at its own pricing. We compare lenders, lock the winner, and manage your file through closing — you get the best rate we can find without doing the legwork.

No. On most loans the wholesale lender pays our compensation, and wholesale pricing is often better than retail even after that. Everything is disclosed up front on your Loan Estimate — no surprises at closing.

Pre-qualification is an estimate based on what you tell us. Pre-approval means your credit, income, and assets have been verified — and it carries real weight with Austin listing agents. With your documents in hand, we can usually issue a pre-approval letter within a day.

The core stack: one month of pay stubs, two years of W-2s, two months of bank statements, and photo ID. Self-employed borrowers add two years of tax returns. Some investor programs, like DSCR loans, skip personal income documentation entirely.

With responsive documents, in as little as 15 days — wholesale lenders compete on turn times. Three weeks is a comfortable target for most purchases, and your contract dates drive the plan.

A rate lock freezes your pricing for a set window, typically 30 to 45 days, so market moves cannot raise your rate while the loan closes. We watch pricing daily and recommend locking once your file is solid and your closing date is set.

Plan on roughly 2–3% of the loan amount in lender, title, and third-party fees, plus prepaid taxes and insurance for your escrow account. Texas has no real-estate transfer tax, which helps keep costs down. Your Loan Estimate itemizes every dollar within three business days of applying.

Principal & interest use the standard amortization formula based on your loan amount, rate, and term. Property tax is your home price times the annual tax rate, divided by 12 — in the Austin metro, combined city, county, and school rates typically run 1.8–2.1%. Insurance and HOA are your annual and monthly figures spread across the payment. PMI is added automatically only when your down payment is under 20% and drops off once you reach 20% equity. This is an estimate, not a quote — your actual rate and payment depend on credit, loan program, and current pricing.

Run your own numbers with our mortgage payment calculator.

As little as 3% for qualified first-time buyers, and 5% is common for repeat buyers. Put 20% down and you skip PMI entirely. Gift funds from family are allowed toward the down payment.

620 is the practical minimum, and pricing improves in tiers as scores rise — the best rates generally start around 740. Because we shop dozens of wholesale lenders, a borderline score often prices better with us than at a single bank.

No. PMI cancels automatically once you reach 22% equity, and you can request removal at 20%. Lender-paid PMI options can also trade a slightly higher rate for no monthly PMI.

It depends on your credit and down payment. Stronger credit usually favors conventional; thinner credit or a smaller down payment can favor FHA. We run both side by side and show you the numbers before you choose.

580 or above qualifies for the 3.5% minimum down payment. Below 580, some lenders allow 10% down — individual lender overlays vary, which is exactly why shopping multiple wholesale lenders helps.

The Austin–Round Rock–San Marcos metro limit is $571,550 for a single-family home, $731,700 for a duplex, $884,450 for a triplex, and $1,099,150 for a fourplex.

With 10% or more down, annual MIP ends after 11 years; with less down it lasts the life of the loan. The most common exit is refinancing to a conventional loan once you reach roughly 20% equity — we map that path from day one.

Yes. Live in one unit and rent the other — the classic house hack. Projected rental income can even help you qualify, and the 2026 duplex limit here is $731,700.

Yes. With full entitlement there is no down payment and no loan limit — you can finance above the $832,750 conforming limit if income and credit support it.

It is a one-time fee: 2.15% on first use with less than 5% down, 1.25% with 10% or more down, 3.3% on subsequent use. It can be financed into the loan, veterans receiving VA disability compensation are exempt entirely, and new for 2026 it is tax-deductible for those who itemize.

Yes. Entitlement restores when you sell and pay off the loan, and partial entitlement (keeping an existing VA loan) still works using county loan limits.

For most eligible veterans, yes — zero down and no monthly mortgage insurance are hard to beat. With 20%+ down it is worth comparing both, and we show you each side by side.

Any loan above the 2026 conforming limit of $832,750 — the same threshold in Travis, Williamson, and every Texas county.

Typically 10–20%, though low-down-payment jumbo programs exist for well-qualified borrowers. For amounts just over the limit, a piggyback structure — conforming first plus a second lien — sometimes beats straight jumbo pricing.

Each lender sets its own jumbo appetite, so the same borrower can see meaningfully different quotes. We price your scenario across banks, credit unions, and specialty jumbo investors and show you the real numbers.

No — depending on the market, jumbo pricing can run at or even below conforming for strong borrowers. It changes week to week, which is another reason to shop it.

When the monthly savings repay your closing costs within the time you expect to keep the home. We show you the break-even month — and we will tell you plainly if staying put is the better move.

Texas 50(a)(6) rules generally cap cash-out refinances at 80% of your home’s value, with specific fee limits and waiting periods. These rules trip up out-of-state lenders constantly — a Texas broker who lives in them matters.

FHA and VA streamlines lower your rate with reduced documentation and, in many cases, no appraisal — faster and cheaper than a full refinance when you qualify.

Yes. If you have lifetime MIP on an FHA loan, refinancing to conventional once you reach about 20% equity eliminates that premium permanently.

Conventional investment loans run roughly 15% down for single-family and up to 25% for multi-unit. DSCR programs vary by lender and leverage — another place where shopping wholesale pays.

A debt-service coverage ratio loan qualifies you on the property’s rent versus its payment — no personal tax returns required. They are wholesale-only products, accessed through a broker rather than a retail bank.

Yes. Existing leases or the appraiser’s market-rent analysis can offset the payment on conventional loans, and DSCR loans are underwritten on that income directly.

DSCR lenders generally allow LLC vesting; conventional loans require individual title at closing. Entity and title strategy is worth a conversation with your CPA — we coordinate that regularly.