Mortgage FAQ: Answers to Common Home Loan Questions
Whether you are buying your first home, exploring a refinance, or comparing loan types, these answers will help you understand your options. Mortgage Marketplace LLC — NMLS #2367229 — licensed in 7 states.
Mortgage Questions, Answered
Find clear answers to the most common home loan questions. Select a topic below to get started.
About Us
About Mortgage Marketplace LLC
Who we are, where we lend, and how working with a mortgage broker is different from going to a bank.
Mortgage Marketplace LLC is a licensed mortgage broker headquartered in Salem, Oregon (NMLS #2367229). We help buyers, homeowners, and investors compare home loan options across multiple lenders so they can review rates, loan structures, and qualification paths in one place. We are licensed to lend in Oregon, California, Washington, Idaho, Texas, Florida, and Montana.
A bank offers only its own loan products. A mortgage broker like Mortgage Marketplace compares options from multiple lenders on your behalf. That means more loan programs, more competitive rates, and more flexible qualification paths than any single bank can offer. We disclose our lender compensation as required by federal law. You see your real options before you commit.
Mortgage Marketplace LLC is licensed to originate mortgage loans in Oregon, California, Washington, Idaho, Texas, Florida, and Montana. Our main office is at 3723 Fairview Industrial Dr. SE, Suite 190, Salem, OR 97302. Our branch office is at 590 Pearl St, Suite 319, Eugene, OR 97401. We work with clients remotely across all 7 licensed states. View full licensing details.
Yes. Rate quotes and pre-approval reviews at Mortgage Marketplace are free with no obligation. Initial rate comparisons use a soft credit inquiry that does not affect your score. A full credit pull is only required for a formal pre-approval or loan application. We tell you before running any credit check so there are no surprises.
Mortgage Marketplace is led by Mike Gillett (NMLS #362285), Broker and Owner, alongside Stacy Martinez (NMLS #2227274) and Summer Freeman (NMLS #360504). All three are licensed mortgage professionals with experience across purchase loans, refinances, and specialty programs. Meet the team.
As a licensed mortgage broker, Mortgage Marketplace earns compensation from the lender when a loan closes. This compensation is disclosed on your Loan Estimate as required by federal law. Our goal is to find you the most competitive loan for your situation, not to push a specific lender's product.
The fastest way to start is to get a free rate quote or begin your pre-approval online at mortgagemarketplace.my1003app.com/register. You can also call us at (503) 210-1480 or email info@mortgagemarketplace.biz. A loan officer will review your situation, explain your options, and walk you through every step of the process.
Buying a Home
Home Purchase Questions
Everything buyers need to know from pre-approval to closing day across all 7 states we serve.
The minimum credit score depends on the loan program. Conventional loans typically require 620 or higher. FHA loans may allow scores as low as 580 with a 3.5% down payment, or 500 with 10% down depending on lender guidelines. VA and USDA loans have their own standards. A higher score gives access to better rates and more programs. We review your full profile across all options to find the best fit.
Down payment requirements vary by loan type. Conventional loans require as little as 3%. FHA loans require 3.5% with qualifying credit. VA and USDA loans offer zero down payment for eligible buyers. Down payment assistance programs are available in all 7 states Mortgage Marketplace serves. View down payment assistance programs.
Pre-approval is a lender's written confirmation that you qualify for a specific loan amount based on a full review of your income, credit, and assets. It shows sellers you are a serious buyer who can close quickly. Getting pre-approved at Mortgage Marketplace is free and has no obligation to proceed.
Yes in some cases. VA loans offer 100% financing for eligible veterans and active-duty service members. USDA loans offer zero down payment for buyers in qualifying rural and suburban areas. Down payment assistance programs may also help cover upfront costs for eligible buyers.
Your total monthly housing payment should generally not exceed 28% to 31% of gross monthly income. The most accurate way to know your buying power is to get pre-approved. Use the mortgage calculator.
Most lenders require recent pay stubs, two years of W-2s and tax returns, 2 to 3 months of bank statements, and a government-issued ID. Self-employed borrowers typically need business tax returns and a profit and loss statement. We tell you exactly what is needed based on your loan program.
Most home purchase loans close in 21 to 30 days when buyers submit complete documentation upfront. VA and USDA loans may take slightly longer due to additional eligibility verification steps.
Closing costs include lender fees, title and escrow fees, prepaid property taxes and insurance, and government recording fees. Total closing costs typically range from 2% to 5% of the loan amount. We provide a full Loan Estimate within 3 business days of your application so you see every cost before committing.
Loan Programs
Loan Program Questions
FHA, VA, USDA, conventional, jumbo, DSCR, and more. Find out which program fits your situation.
An FHA loan is a mortgage insured by the Federal Housing Administration. It allows buyers to qualify with lower down payments and more flexible credit requirements than most conventional loans. Buyers with a credit score of 580 or higher may qualify for a 3.5% down payment. FHA loans are best for first-time buyers or buyers with limited savings or lower credit scores who want a path to homeownership with government-backed protection. Learn more about FHA loans.
A VA loan is a government-backed mortgage guaranteed by the U.S. Department of Veterans Affairs. It is available to eligible veterans, active-duty service members, and qualifying surviving spouses. VA loans require no down payment and no private mortgage insurance, making them one of the most cost-effective home loan options available. Eligibility is based on your military service history and a Certificate of Eligibility from the VA. Learn more about VA loans.
A USDA loan is a government-backed mortgage insured by the U.S. Department of Agriculture. It allows eligible buyers to purchase a primary residence with zero down payment in qualifying rural and suburban areas. USDA loans have household income limits based on county and household size. Many suburban areas outside major cities qualify. Mortgage Marketplace confirms property and income eligibility for buyers in all 7 licensed states. Learn more about USDA loans.
FHA loans have lower credit score and down payment requirements but require mortgage insurance for the life of the loan when your down payment is under 10%. Conventional loans require a stronger credit profile but allow mortgage insurance to be removed once you reach 20% equity. FHA is a better fit for buyers with lower credit or smaller down payments. Conventional is often more cost-effective over time for buyers with strong credit and 20% down.
A jumbo loan is a mortgage for properties that exceed the conforming loan limit set by Fannie Mae and Freddie Mac. For most counties in 2025 that limit is 06,500. Loan amounts above that threshold require a jumbo loan. Because jumbo loans are not government-backed, lenders apply stricter credit, income, and reserve requirements. Most programs require a credit score of 700 or higher and a down payment of 10% to 20%. Learn more about jumbo loans.
A DSCR loan qualifies you based on a rental property's income rather than your personal tax returns or W-2s. Lenders calculate the Debt Service Coverage Ratio by dividing the property's gross monthly rent by its total monthly housing expense. A ratio of 1.0 means rent covers the payment exactly. Most lenders prefer 1.2 or higher. DSCR loans are designed for real estate investors who want to finance rental properties without submitting personal income documentation. Learn more about DSCR loans.
An alternative document loan qualifies you using bank statements, 1099 income, asset depletion, or profit and loss statements instead of W-2s and tax returns. It is designed for self-employed borrowers, freelancers, business owners, and investors whose income does not appear clearly on traditional tax documents. This program gives borrowers with non-traditional income a clear path to qualify without penalizing them for legitimate business deductions. Learn more about alt-doc loans.
Yes. The Medical Professional Loan Program is a specialized mortgage for physicians and eligible healthcare professionals who want to buy a home before building traditional income history. The program qualifies borrowers based on future earning potential and professional credentials rather than years of work history. It offers up to 100% financing with no mortgage insurance and accepts signed employment contracts in place of pay stubs for residents and newly employed physicians. Learn more about medical professional loans.
Refinancing
Refinance Questions
When refinancing makes sense, what your options are, and what to expect from the process in all 7 states we serve.
Refinancing replaces your current mortgage with a new loan. Homeowners refinance for four main reasons: to lower their interest rate and reduce their monthly payment, to shorten their loan term and pay off faster, to switch from an adjustable rate to a fixed rate for more stability, or to access their home equity as cash for renovations, debt consolidation, or other expenses. Mortgage Marketplace compares refinance options across multiple lenders in Oregon, California, Washington, Idaho, Texas, Florida, and Montana.
Refinancing makes sense when the long-term savings outweigh the upfront costs. The simplest way to evaluate it is to divide your total closing costs by your monthly savings to find your break-even point. If you plan to stay in the home past that point, refinancing likely saves money. A commonly used benchmark is reducing your interest rate by at least 0.5%. We calculate your specific break-even and compare real options before you commit to anything.
A rate-and-term refinance changes your interest rate, loan term, or both without changing your loan balance. The goal is to lower your monthly payment or pay off the loan faster. A cash-out refinance gives you a larger loan than your current balance and pays the difference to you in cash at closing. You are borrowing against your home equity. Both types replace your existing mortgage with a new one. The right choice depends on your goal and how much equity you have.
For a conventional rate-and-term refinance, most lenders require at least 5% equity. For a cash-out refinance, lenders typically require you to retain at least 20% equity after the new loan closes. FHA streamline refinances and VA Interest Rate Reduction Refinance Loans have more flexible equity requirements and less documentation. We confirm your specific equity position and which programs you qualify for based on your current loan type.
Refinance closing costs typically range from 2% to 5% of the loan amount and include lender fees, title and escrow fees, appraisal, and government recording fees. Some lenders offer no-cost refinances where closing costs are rolled into the loan balance or offset by a slightly higher interest rate. We provide a full Loan Estimate early in the process so you can compare the real total cost of each option side by side before deciding.
Most refinances take 21 to 45 days from application to closing. The timeline depends on how quickly documentation is submitted, appraisal scheduling, and lender underwriting capacity. FHA streamline and VA IRRRL refinances typically close faster because they require less documentation and no new appraisal in most cases. Responding quickly to any underwriting conditions is the most effective way to keep the process on schedule.
Yes. Many refinance programs allow less than 20% equity. FHA streamline refinances, VA interest rate reduction refinance loans, and certain conventional programs have flexible equity requirements. If your loan-to-value is above 80%, you will likely continue paying mortgage insurance until you reach 20% equity. We identify which programs are available based on your current loan type, equity position, and credit profile.
A HELOC is a Home Equity Line of Credit. It works like a credit card secured by your home equity. You draw from the line as needed during the draw period and repay what you use. A cash-out refinance replaces your entire first mortgage with a new larger loan and pays you the difference in cash at closing. A HELOC does not replace your first mortgage. It is a separate second lien. HELOCs work best for ongoing costs. Cash-out refinances work best when you want to lock in a fixed rate on a large lump sum. Learn more about HELOCs.
Rates, Costs and Qualifying
Rates, Costs, and Qualification Questions
How mortgage rates work, what affects your personal rate, and how lenders evaluate your income, credit, and financial profile.
Your rate is shaped by two things: market conditions and your personal financial profile. Market factors include the federal funds rate, Treasury bond yields, and overall economic conditions. Personal factors include your credit score, down payment size, loan type, loan amount, property type, and how you plan to use the property. A higher credit score and larger down payment typically result in a lower rate. As a broker, Mortgage Marketplace compares rates across multiple lenders to find the most competitive offer for your specific profile.
A fixed-rate mortgage keeps the same interest rate and payment for the entire loan term. Your payment never changes regardless of market conditions. An adjustable-rate mortgage (ARM) has a fixed rate for an initial period such as 5 or 7 years and then adjusts periodically based on a market index. Fixed rates offer full payment predictability. ARMs offer a lower starting rate and can be cost-effective for buyers who plan to sell or refinance before the adjustable period begins. Learn more about ARMs.
A 30-year mortgage spreads your loan over more payments which lowers your monthly cost but results in more total interest paid over the life of the loan. A 15-year mortgage has a higher monthly payment but a lower interest rate and significantly less total interest paid. Choose a 30-year mortgage if keeping your monthly payment low is the priority. Choose a 15-year mortgage if you can comfortably handle the higher payment and want to pay off faster and minimize total borrowing costs. We run both scenarios side by side so you see the real numbers.
A rate lock is a lender's written commitment to hold your interest rate for a specific period, typically 30 to 60 days, while your loan is processed. If rates rise during the lock period, your rate stays the same. If rates fall, you may not benefit unless your lock includes a float-down option. Locking earlier protects you from rate increases but may expire if your closing is delayed. We advise you on the right time to lock based on current market conditions and your closing timeline.
Debt-to-income ratio (DTI) compares your total monthly debt payments to your gross monthly income. Lenders use it to measure how much of your income goes toward debt. Most conventional loans prefer a DTI of 43% or lower. FHA and VA loans may allow higher DTIs with compensating factors such as strong credit or significant reserves. A lower DTI signals stronger financial health and typically unlocks better rates and higher loan amounts. We calculate your DTI and identify which programs fit before you apply.
Yes. Self-employed borrowers typically need to provide two years of personal and business tax returns, a year-to-date profit and loss statement, and business bank statements. If your tax returns show reduced income due to legitimate business deductions, an alternative document loan using bank statements or 1099 income may provide a stronger qualification path. We compare both options for self-employed borrowers to identify which program produces the best outcome for your situation. Learn more about alt-doc loans.
Mortgage insurance protects the lender, not the borrower, if you stop making payments. On conventional loans, private mortgage insurance (PMI) is required when your down payment is under 20% and can be removed once you reach 20% equity. FHA loans require mortgage insurance for the life of the loan when your down payment is under 10%. VA and USDA loans do not require monthly mortgage insurance. The most straightforward way to avoid PMI on a conventional loan is to put 20% down or to refinance once you reach 20% equity.
Down payment assistance is funding from a state, local, or nonprofit program that helps eligible buyers cover part of their down payment or closing costs. It is typically structured as a grant that does not need to be repaid, a deferred loan repaid when you sell or refinance, or a low-interest second mortgage. Mortgage Marketplace helps buyers access down payment assistance programs in all 7 licensed states including Oregon, California, Washington, Idaho, Texas, Florida, and Montana. Eligibility varies by program, income, and purchase location. View programs by state.
Still Have Questions?
We compare loan options across multiple lenders so you can see your real options before you apply. Our team is ready to walk you through your situation
