About Private Financing

E.E.Qualified

Homes that are “E.E. Qualified” can provide several benefits to buyers:

Lower Energy Bills: Energy-efficient homes consume less energy, which can translate to reduced utility costs over time.
Comfort: Improved insulation, better windows, and advanced HVAC systems contribute to a more comfortable living environment.
Increased Property Value: Many buyers are looking for energy-efficient homes, which can make E.E. Qualified properties more attractive on the market.
Environmental Impact: Energy-efficient homes reduce the carbon footprint by consuming less energy and lowering greenhouse gas emissions.

Credit Score
Typically, borrowers with a credit score of 620 or higher are preferred for conventional loans, though higher scores (700+) may qualify for better interest rates. A strong credit history indicates financial responsibility and the ability to repay debt.
Stable Income
Borrowers are generally expected to have a steady, reliable source of income for at least two years. This could come from a salaried job, self-employment, or consistent business income. Lenders typically look for borrowers with stable or increasing income to ensure they can manage monthly mortgage payments.
Debt-to-Income Ratio (DTI)
A low DTI ratio is preferred, ideally under 43% (the lower the better). This ratio is calculated by dividing monthly debt payments (including the new mortgage) by gross monthly income. A lower DTI shows a borrower’s ability to handle additional debt.

Conventional Loans: These are typically the most common type of mortgage with a standard 15- or 30-year term. They require a credit score of at least 620, and typically require Private Mortgage Insurance (PMI) if the down payment is less than 20%.
FHA Loans: These loans are often available for first-time homebuyers or those with lower credit scores and require a down payment as low as 3.5%. Mortgage Insurance Premiums (MIP) are required for the life of the loan if the borrower finances less than 10%.
VA Loans: Available to veterans, active military, and eligible spouses, these loans offer zero down payment and typically do not require mortgage insurance. These are highly favorable loans for eligible borrowers.