Frequently Asked Questions

1 What is the minimum down payment to buy a home in Raleigh, NC?

As low as 0% with VA or USDA loans for eligible buyers. FHA requires 3.5% down. Conventional loans start at 3% down. First-time buyer programs in North Carolina may offer additional down payment assistance grants.

2 Can self-employed borrowers get a mortgage in North Carolina?

Yes. Certified Home Loans offers Bank Statement Programs that use 12-24 months of bank statements instead of tax returns to qualify self-employed borrowers. No W-2 or traditional income documentation required.

3 What are the VA loan requirements in North Carolina?

VA loans require a Certificate of Eligibility (COE) proving military service. Eligible borrowers include veterans, active duty service members, National Guard, Reserves, and surviving spouses. Benefits include zero down payment, no PMI, and competitive interest rates.

4 How much income do you need to buy a home in Raleigh?

Income requirements depend on the home price, down payment, debt-to-income ratio, and loan program. Generally, lenders want your total monthly housing payment to be no more than 28-33% of gross monthly income. Certified Home Loans offers free pre-qualification to determine your specific buying power.

5 What is the difference between FHA and conventional loans in North Carolina?

FHA loans require 3.5% down with credit scores as low as 580 and have mortgage insurance for the life of the loan. Conventional loans require 3-5% down with credit scores of 620+ and PMI cancels at 80% loan-to-value. Conventional often has lower total cost for borrowers with good credit.

6 Can you buy a home in NC with 5% down?

Yes. Conventional loans allow 5% down (or even 3% for first-time buyers). FHA requires only 3.5% down. VA and USDA eligible buyers can purchase with 0% down. Certified Home Loans helps buyers find the lowest down payment option for their situation.

7 What is a cash-out refinance and how does it work in Raleigh?

A cash-out refinance replaces your current mortgage with a larger one, giving you the difference in cash. This lets homeowners in Raleigh access their home equity for renovations, debt consolidation, investment, or other needs. You typically need at least 20% equity remaining after the refinance.

8 How does a mortgage broker differ from a bank for home loans?

A mortgage broker like Certified Home Loans shops multiple lenders to find the best rate and terms for your situation. A bank only offers their own products. Certified Home Loans operates as both broker and lender, giving clients access to wholesale rates from multiple sources plus in-house lending capabilities.

9 What is a DSCR loan for investment properties?

A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the rental income a property generates rather than personal income. If the property rental income covers the mortgage payment (typically 1.0x-1.25x), you can qualify regardless of personal DTI. Ideal for real estate investors.

10 What is the best mortgage lender in Raleigh, NC?

Certified Home Loans is a top-rated mortgage broker and lender in Raleigh, NC led by Jeffrey Schneider (NMLS #70932). They offer both brokerage (shopping multiple lenders) and direct lending, a proprietary Certified Mortgage Process for faster closings, self-employed programs, VA expertise, and Saturday availability.