Mortgage FAQ — Colorado, Indiana, Kentucky & Florida | Dominick Howard NMLS# 2666617

Question 1

Myth: You need a 20% down payment to buy a home.

Accepted Answer

False — and this myth stops more buyers than almost anything else. FHA loans allow as little as 3.5% down. Conventional loans can go as low as 3% for qualified buyers. VA loans require zero down for eligible veterans and active-duty service members. The 20% figure comes from the threshold to avoid Private Mortgage Insurance (PMI), but PMI is often a small monthly cost that's worth it to get into a home years earlier. We'll run the numbers together so you can make an informed decision.

Question 2

Myth: You need perfect credit to qualify for a mortgage.

Accepted Answer

Not even close. FHA loans are available to borrowers with credit scores as low as 580 with 3.5% down, and some programs go lower with a larger down payment. Conventional loans typically require a 620 minimum. VA loans have no official minimum score, though lenders set their own overlays. Your credit score is one factor — income, debt-to-income ratio, employment history, and assets all play a role. I've helped clients with imperfect credit find the right path forward.

Question 3

Myth: Getting pre-approved will hurt my credit score.

Accepted Answer

A mortgage pre-approval does involve a hard credit inquiry, which can temporarily lower your score by a few points. However, credit bureaus treat multiple mortgage inquiries within a short window (typically 14–45 days) as a single inquiry, recognizing that you're rate shopping — not accumulating debt. The impact is minimal and short-lived. Not getting pre-approved, on the other hand, means you're shopping blind in a competitive market.

Question 4

Myth: You should always go with the lowest interest rate.

Accepted Answer

Rate is important, but it's not the whole picture. A lower rate with high origination fees or points can cost more over time than a slightly higher rate with minimal closing costs. You also need to factor in loan term, whether the rate is fixed or adjustable, and how long you plan to stay in the home. I always show clients the full cost comparison — not just the headline rate — so you know exactly what you're getting into.

Question 5

Myth: Self-employed borrowers can't get a mortgage.

Accepted Answer

Self-employed borrowers absolutely can qualify — it just requires more documentation. Lenders typically want two years of tax returns, profit and loss statements, and business bank statements. Non-QM (non-qualified mortgage) products like bank statement loans are specifically designed for self-employed borrowers who have strong cash flow but complex tax situations. If you write off a lot of expenses, we'll find the right loan structure for your income profile.

Question 6

Myth: Renting is always cheaper than buying.

Accepted Answer

In the short term, renting can have lower upfront costs. But over time, homeownership builds equity — every mortgage payment is partially an investment in an asset you own. Renters build zero equity and are subject to rent increases with no ceiling. When you factor in tax deductions, appreciation, and fixed monthly payments (on a fixed-rate mortgage), buying often wins over a 5–10 year horizon. I can run a rent-vs-buy comparison for your specific market and situation.

Question 7

Colorado: How competitive is the Denver metro market and how do I win offers?

Accepted Answer

The Denver metro remains one of the most competitive markets in the country. Homes in desirable neighborhoods routinely receive multiple offers within days of listing. The single most important thing you can do is get fully underwritten pre-approval — not just a pre-qualification letter — before you start touring homes. A fully underwritten approval means your income, assets, and credit have already been verified, which dramatically strengthens your offer. I can also provide a pre-approval letter tailored to a specific property address, which signals to sellers that you're serious and ready to close fast.

Question 8

Colorado: Are there first-time homebuyer programs available in Colorado?

Accepted Answer

Yes. The Colorado Housing and Finance Authority (CHFA) offers down payment assistance programs, below-market interest rates, and grants for qualifying first-time buyers and those who haven't owned a home in the past three years. Income and purchase price limits apply and vary by county. These programs can be layered with FHA, VA, or conventional loans. I work with CHFA-approved products and can walk you through eligibility and how to stack these benefits effectively.

Question 9

Indiana: What should I know about buying a home in Indiana as a first-time buyer?

Accepted Answer

Indiana is one of the most affordable housing markets in the Midwest, which makes it an excellent entry point for first-time buyers. The Indiana Housing and Community Development Authority (IHCDA) offers the Next Home and First Place programs, which provide down payment assistance and competitive rates. Indiana also has relatively low property taxes compared to neighboring states. Closing timelines in Indiana are typically straightforward, and I've helped many buyers close in under 30 days in this market.

Question 10

Kentucky: What are the unique considerations for buying in Kentucky?

Accepted Answer

Kentucky offers some of the lowest home prices in the Southeast, making it an attractive market for buyers relocating from higher-cost states. The Kentucky Housing Corporation (KHC) provides down payment assistance and affordable loan products for qualifying buyers. One thing to be aware of: Kentucky uses an attorney-based closing process, meaning a real estate attorney must be present at closing — this is standard and your agent will coordinate it. Property taxes in Kentucky are also among the lowest in the nation, which keeps long-term ownership costs down.

Question 11

Florida: What should buyers know about the Florida market right now?

Accepted Answer

Florida's market varies significantly by region. South Florida (Miami, Fort Lauderdale) remains highly competitive and expensive, while markets like Jacksonville, Tampa, and Central Florida offer more inventory and better affordability. One critical factor unique to Florida: homeowners insurance. Costs have risen sharply in recent years due to hurricane risk and insurer exits from the state. I always factor insurance estimates into affordability calculations for Florida buyers — it can meaningfully affect your monthly payment. Flood zone designation is also worth checking early in the process.

Question 12

Florida: Are there down payment assistance programs in Florida?

Accepted Answer

Yes. Florida Housing Finance Corporation offers several programs including the Florida Assist (up to $10,000 in down payment assistance as a 0% deferred loan) and the Florida Homeownership Loan Program. These can be combined with FHA, VA, USDA, or conventional loans. Eligibility is based on income, purchase price limits, and the county you're buying in. Florida also has a robust market for VA loans given the large military and veteran population — if you or a family member has served, that's often the best option available.

Question 13

How long does it take to close on a home?

Accepted Answer

My average clear-to-close time is under 30 days, which is faster than the industry average of 43–50 days. The timeline depends on how quickly you provide documentation, the complexity of your financial situation, and the type of loan. VA loans can sometimes take slightly longer due to the appraisal process. The best way to speed things up is to respond to document requests quickly and avoid making any major financial changes (new credit, large deposits, job changes) during the process.

Question 14

What's the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is a quick, informal estimate based on self-reported information — it carries very little weight with sellers. Pre-approval involves a full application, credit pull, and review of your income and asset documentation. A fully underwritten pre-approval goes one step further: an underwriter has actually reviewed your file, meaning the only remaining conditions are property-specific (appraisal, title). In competitive markets, a fully underwritten approval can be the difference between winning and losing an offer.

Question 15

What documents do I need to apply for a mortgage?

Accepted Answer

Standard documentation includes: two years of W-2s and federal tax returns, 30 days of recent pay stubs, two to three months of bank statements for all accounts, a government-issued photo ID, and information on any current debts or liabilities. Self-employed borrowers will also need business tax returns and a year-to-date profit and loss statement. If you're using gift funds for a down payment, a gift letter from the donor is required. I'll give you a personalized checklist once we talk through your situation.

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