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Frequently Asked Questions

How much down payment do I need as a first-time homebuyer? 

First-time buyers can secure a mortgage with as little as 3%* down on a conventional loan or 3.5%* down with an FHA loan. Gifts and down payment assistance programs can help with down payment needs. We help you compare low down payment options so you can determine the most affordable path to homeownership.

Popular options include Conventional 3%* down, FHA loans, USDA loans (for rural areas), and VA loans (for eligible borrowers). Each program has different benefits, such as lower down payments, flexible credit requirements, or reduced mortgage insurance. Prism Lending Partners helps you evaluate which program fits your income, credit, and home buying goals.
Refinancing replaces your current mortgage with a new one—often with a lower rate, better terms, or access to equity. Homeowners typically refinance to lower monthly payments, eliminate PMI, switch from an ARM to a fixed rate, or pull out cash for renovations or debt consolidation. If current rates or your financial situation have improved, refinancing may save you money.
Closing costs generally range from 2% to 5% of the loan amount, but they don’t have to. Contact us directly at Prism Lending Partners to review your options.
Most borrowers need to provide W-2s, pay stubs, bank statements, tax returns, ID, and details about debts and assets. Self-employed borrowers may need additional business financials. If you’re applying for an investment or alternative loan type, documentation may vary. Prism Lending Partners helps you organize exactly what’s required for your specific loan.
DSCR (Debt Service Coverage Ratio) loans qualify you based on the income generated by the property, not your personal W-2 income. If the rental income covers the projected mortgage payment (often a DSCR of 1.0 or higher), you may qualify—even with complex financials. These loans are ideal for investors looking for fast, flexible financing without full income documentation.
Yes—depending on the loan type. Conventional investment loans typically require a minimum of 15%* down, but some alternative loan programs such as DSCR, bank statement, or portfolio loans offer more flexibility. Certain lenders also allow seller credits or gift funds for closing costs. Prism Lending Partners helps you compare options that maximize leverage while keeping payments manageable.
Absolutely. Self-employed borrowers can qualify using tax returns, bank statements, profit-and-loss statements, or even asset-based income, depending on the loan program. Bank statement loans are especially popular because they use deposits—not taxable income—to determine eligibility. We specialize in helping business owners and 1099 earners secure the right financing.
VA loans offer no down payment, no mortgage insurance, and competitive interest rates for eligible veterans, active-duty service members, and some surviving spouses. Qualification is based on service history and obtaining a Certificate of Eligibility (COE). Prism Lending Partners helps you verify eligibility and take advantage of one of the best home loan programs available.