How much of a down payment do you need? For most loans (conforming loan amounts) gone are the days of needing a 20% down payment.

There are several types of mortgages that require a lower down payment:

VA Loans – No down payment

FHA loans – 3.5% down

Conventional 97 – 3% down

Conventional Loans – 5%-20% down

One of the biggest factors in determining if you qualify for a mortgage is your credit score,. Your score is based on payment history, % of credit used, age of accounts, number of inquiries and any derogatory information. It is a good idea to review your credit report at least once a year.

Another factor to qualify for a home loan is that you will need to prove your income is sufficient to repay the mortgage. If you are paid a salary pay stubs, W2s and tax returns will for calculating your income. However, self-employed borrowers and commission based jobs are more difficult. You should have at least 2 years of documented income from the same company, or in the same industry to qualify. If you earn commissions you just need to average your income from the last 2 years of tax returns.

Also, there are several documents your lender will need to get your loan approved. Tax returns and W2’s from the past 2 years, last 30 days pay-stubs, bank statements & investment accounts (past 2 months), IDs and the purchase contract.

Be supply the contact information upfront of your Realtor, Insurance Agent and Attorney to save time.

Todd Probasco is the VP Mortgage Sales Manager at Lakeside Bank. He can be reached at 708.205.2983 or email

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