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While traditional conventional loans often require anywhere from 3% to 20% down, certain government-backed options like FHA loans require as little as 3.5%, and VA or USDA loans offer 0% down options for qualifying buyers.

Generally, a credit score of 620 or higher is required for a conventional loan. However, FHA loans may accept scores as low as 580 with a 3.5% down payment. Higher scores (740+) will secure you the best interest rates.

Your DTI ratio compares your monthly debt payments to your gross monthly income. Lenders use it to measure your ability to manage monthly payments. Most lenders prefer a DTI ratio below 43% to 45% for loan pre-approval.

You should consider refinancing when market interest rates drop at least 0.75% to 1% below your current rate, when you want to switch from an adjustable-rate to a fixed-rate mortgage, or when you need to tap into your home equity.

A standard monthly mortgage payment consists of four main parts, commonly known as PITI: Principal, Interest, Property Taxes, and Homeowners Insurance (along with Private Mortgage Insurance if applicable).

Pre-qualification is a quick estimate of how much you might be able to borrow based on self-reported financial data. Pre-approval is a formal, verified evaluation where a lender checks your credit, tax returns, and bank statements.

Down payment assistance programs are typically offered by state and local housing agencies, non-profits, and banks. Eligibility usually depends on your income level, location of the property, and whether you are a first-time home buyer.