Buying a home comes with a lot of unknowns. We’ve answered the ones we hear most so you can move forward with confidence.
You can qualify for an FHA loan with a credit score as low as 580 for the 3.5% down payment option. If your credit score is between 500-579, you may still qualify but will need to put down 10%. Many lenders also offer manual underwriting for borrowers with unique credit situations.
Yes! FHA loans allow 100% of your down payment and closing costs to come from gift funds. The gifts must be from eligible sources like family members, employers, or approved organizations. You’ll need a signed gift letter stating the funds don’t need to be repaid.
FHA mortgage insurance protects the lender if you default on your loan. There are two parts: an upfront premium of 1.75% of the loan amount (which can be financed into your loan) and an annual premium of 0.55% to 1.05% of the loan amount, paid monthly. The exact rate depends on your loan amount, term, and loan-to-value ratio.
No, you don’t have to be a first-time homebuyer. FHA loans are available to any qualified borrower, regardless of whether you’ve owned a home before. The property must be your primary residence – you cannot use FHA loans for investment properties or vacation homes.
FHA loans typically take 30-45 days to close from the time your application is submitted. The timeline can vary based on factors like property appraisal scheduling, document processing, and underwriting workload. Our experienced team works to close as quickly as possible while ensuring accuracy.
FHA loans can be used to purchase single-family homes, condominiums (in FHA-approved buildings), townhomes, and 2-4 unit properties (if you live in one unit as your primary residence). Manufactured homes are also eligible if they meet FHA requirements and are permanently affixed to a foundation.
The minimum credit score for a conventional loan is typically 620, but you’ll get better rates with a score of 740 or higher. We work with borrowers across the credit spectrum to find the best conventional loan options.
Conventional conforming loans can go up to $766,550 in most areas, and up to $1,149,825 in high-cost areas like Greater Boston. Loans above these limits are considered jumbo loans with different requirements.
Conventional loans typically require higher credit scores and down payments but offer more flexibility and potentially lower overall costs. FHA loans allow lower credit scores and down payments but require mortgage insurance for the life of the loan.
Yes! Conventional loans can be used for primary residences, second homes, and investment properties. Investment properties typically require a 25% down payment and have slightly higher interest rates.
Most conventional loans close within 30-45 days, but we can often close faster with complete documentation. Our streamlined process and dedicated underwriting team help expedite approvals.
PMI automatically cancels when you reach 78% loan-to-value ratio. You can request removal at 80% LTV with a new appraisal. PMI can also be eliminated through refinancing if your home value has increased significantly.
Yes! USDA loans offer 100% financing, meaning you can finance the entire purchase price of your home without a down payment, as long as you meet the eligibility requirements.
Many areas outside major cities qualify, including parts of Western Massachusetts, Central Massachusetts, and some suburban communities. The eligibility map is updated regularly, so even if an area wasn’t eligible before, it might be now!
While USDA doesn’t set a minimum credit score, most lenders require at least 640 for automated underwriting. Manual underwriting may be available for scores below 640. We work with multiple lenders to find the best options for your situation.
USDA loans require the home to be move-in ready and meet certain property standards. However, minor repairs can often be addressed with a repair escrow. For major renovations, we can help you explore USDA renovation loan options.
The typical USDA loan process takes 30-45 days from application to closing. This includes property eligibility verification, income verification, and USDA’s final approval. Our experienced team works to expedite the process whenever possible.
Yes! VA loan benefits are reusable. You can use them multiple times throughout your lifetime, either by selling your current VA-financed home or by having sufficient remaining entitlement for a second home.
No down payment is required for VA loans up to the county loan limit. For homes above the limit, you’ll need to pay 25% of the difference between the loan limit and purchase price.
The VA funding fee is a one-time fee that helps sustain the VA loan program. It ranges from 0.5% to 3.3% of the loan amount. Veterans with service-connected disabilities are exempt from this fee.
Yes, you can purchase condos and townhouses with VA loans, but the property must be VA-approved. The condo complex must be on the VA’s approved list or we can help get it approved.
VA loan approval typically takes 30-45 days from application to closing. The timeline can vary based on property appraisal, underwriting complexity, and documentation completeness.
Yes, unremarried surviving spouses of veterans who died in service or from service-connected disabilities may be eligible for VA loan benefits. Specific eligibility requirements apply.
Your first payment is typically due on the first of the month, about 30–60 days after your closing date. For example, if you close in June, your first payment is usually due August 1st. This is because mortgage interest is paid in arrears — you pay for the previous month, not the upcoming one. Your loan servicer — the investor we brokered your loan to — will confirm your exact due date in your welcome letter. You’ll also receive your first Mortgage Statement in the mail within a few weeks from funding. If you don’t receive it, please reach out to your Loan Officer right away!
You will never make a mortgage payment directly to Milestone. As a mortgage broker, our role is to help you find and secure the best loan — once your loan closes, all payments go to your loan servicer. Within a few weeks of closing, you’ll receive a welcome letter from your servicer with payment instructions, online portal access, and contact details. Don’t pay anyone until you receive that letter — or reach out to us and we’ll help you track it down.
Don’t panic — servicer welcome letters can take 2–3 weeks after closing to arrive. Check your email (including spam) and physical mail. If your first payment due date is approaching and you still haven’t heard anything, contact your loan officer at Milestone right away. You are legally protected — federal law gives you a grace period when a loan is transferred to a new servicer, so a brief delay won’t put you in default.
No worries — here’s how to track down your servicer:
Most servicers offer several options: online portal, mobile app, phone, or mail. We strongly recommend setting up an online account with autopay as soon as you receive your welcome letter — it ensures you’re never late and many servicers waive fees for ACH payments directly from your bank account. Keep your routing and account number handy when you enroll.
Your monthly payment will always include principal (the portion that reduces your loan balance) and interest (the cost of borrowing). Most loans also include an escrow payment covering property taxes and homeowner’s insurance — and mortgage insurance if your down payment was less than 20%.
Escrow is not universal — some borrowers with significant equity may opt out and pay taxes and insurance directly. VA loans have no mortgage insurance requirement at all.
Your Closing Disclosure, provided before closing, will show the exact breakdown for your specific loan.
Most mortgage servicers offer a 15-day grace period after your due date before a late fee is charged. However, this varies by servicer, so check your loan documents. Payments more than 30 days late can be reported to credit bureaus — so if you’re ever in a tight spot, contact your servicer proactively. They often have hardship options available.
