Luis Rios 's blog

FHA loans and conventional loans each have their own distinct requirements that borrowers need to meet in order to qualify. FHA loans have more flexible standards for things like down payments and credit scores. Rates and mortgage insurance requirements also differ between the two types of loans, as do refinancing requirements.

• FHA mortgage insurance is required, but with a down payment of 10% or more, it can be canceled after 11 years.

In a rent-to-own agreement, you lease a home for a set amount of time before buying it. The process can be a way for people with limited savings to buy homes because the agreement builds in opportunities to save for a down payment. And if you have credit challenges, you can buy some time in the home you want before having to qualify for a mortgage.

Lenders adjust mortgage rates depending on how risky they judge the loan to be. A riskier loan has a higher interest rate.

When judging risk, the lender considers how likely you are to fall behind on payments (or stop making payments altogether) and how much money the lender could lose if the loan goes bad. The major factors are credit score and loan-to-value ratio.

The lowest mortgage rates go to borrowers with credit scores of 740 or higher. These borrowers have the broadest choice of loan products.

Loan officers often offer to start by looking at the maximum mortgage amount you could qualify for, based primarily on your credit score and debt-to-income ratio. While it can feel pretty cool to see a big number, maxing out what a lender will offer could leave you house poor.

Selling your home is an exciting time, but once tax season rolls around, you could be taxed for the capital gains on your sale. There are some exceptions, and it can get a little confusing, so let’s clear up what capital gains taxes are and how you can avoid them when selling your home.

With the elimination of cooperative compensation, sellers would no longer have to specify the size of the commission they'll pay buyer's agents. In fact, sellers would be banned under the new agreement from setting commissions for buyer's agents in MLS listings.

Average closing costs for the buyer run between about 2% and 6% of the loan amount. That means, on a $300,000 home loan, you would pay from $6,000 to $18,000 in closing costs in addition to the down payment. After you apply for a mortgage, the lender will outline the projected closing costs along with other details in a loan estimate document. You should receive the loan estimate within three business days after applying.

VA and USDA loans: 0% down payment: Guaranteed by the U.S. Department of Veterans Affairs, VA loans usually do not require a down payment. VA loans are for current and veteran military service members and eligible surviving spouses. USDA loans, backed by the U.S. Department of Agriculture's Rural Development program, also have no down payment requirement.

You could add up to 100 points with tips like paying cards more than once a month and fixing credit report errors.

If your credit score is lower than you'd like, there may be fast ways to bring it up. Depending on what's holding it down, you may be able to tack on as many as 100 points relatively quickly.

Home buyers still face tough challenges in today's housing market: steep prices, elevated mortgage rates and a shortage of homes for sale.

But the feverish home-buying competition of the last couple of years has cooled a bit. There are fewer bidding wars, and buyers have more room to negotiate.

Here's how things have changed in recent months and how to navigate the market in the last half of 2022.