Frequently Asked Questions about Mortgage Loans

A: Virtually all kinds of loans that are readily available in the market place can be utilized in the EHHAF program. Commonly used loan programs include FHA (3.5% down payment), Conforming (5%-20% down payment), USDA Rural Housing (ZERO Down Payment for rural homes), and VA Mortgages (ZERO Down Payment for eligible veterans).

A: You may work with any VA authorized lender to buy a home. However, for participants in the EHHAF program, EveryDay Heroes Housing Assistance Fund further pre-screens the approved lenders to ensure you are working with lenders who are committed to helping military families become homeowners. If you are eligible for a VA mortgage, you will find even more information on the website of our sister organization, Military Housing Assistance Fund.

A: You can go to the USDA Rural Homes Eligibility Site , click on “Single Family Homes” on the left, and input the address of the property you are looking at. You will then get an answer as to whether the home is eligible. You will also see a map pop up and you can move it around looking for the boundaries between areas that are and are not eligible for USDA Rural Home Financing. If this is a program you are particularly interested in, then you can focus your search on areas that are eligible.

A: The short answer is “Maybe”. Foreclosures and/or bankruptcies are more than a mere blemish, but even these, after 2-4 years, depending on the loan program, can be overcome. Other more minor issues may be more easily overcome. For more difficult challenges, we can refer you to credit repair professionals who can, in most cases, have your credit report cleaned up and ready to roll in 90 days or less.

A: TWO most recent of each of the following:
-Paystubs (including 2nd job, spouse’s job, Military LES)
-Statements for all bank accounts and/ or investment accounts

Additionally, the lender will need copies of everything related to your purchase transaction; the contract, the appraisal, any addendums to either, the deposit check (canceled) given to escrow or the seller, etc. In addition, the lender will send you a package of forms called “disclosures” that will spell out the terms and conditions of the proposed financing. It is imperative that you review, sign, and fax these forms back to the lender quickly, as the lender, by law, cannot order the appraisal and otherwise move forward on your loan for three full days after they have received your signed disclosures back. With an escrow clock ticking, this is critical. Nothing happens until you get the disclosures back in, so if there is a problem, speak to your lender and get it resolved right away.

IMPORTANT: Until the day your loan closes, you should fax any new statements, paystubs, etc. to your lender, as the lender will require the two MOST RECENT (at the time of close) to be included in the final package. And of course, while your purchase transaction is under way, DO NOT take on any new debt obligations. This can kill your purchase by changing your qualifying debt to income ratios.