Where to Start
Residential financing, start here if you do not know which loan you need.
The overview page. Every route, and how to tell which one is yours.
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Loan Selection
Residential Home Financing
The overview page. Every route, and how to tell which one is yours.
Eligibility First
VA service eligibility beats every other route for those who qualify, and a rural address may open USDA. Check these before anything else.
Credit and Deposit Interact
A lower score often prices better under FHA; a stronger one makes conventional cheaper over time. They're not separate questions.
Then How Income Is Documented
Self-employed borrowers frequently need a route other than full documentation, and that choice moves qualifying income substantially.
Residential Home Financing Full Description
Everything you need to know before you apply.
Most people arrive at a mortgage knowing what they want to buy and having no idea which loan they're supposed to ask for, which is entirely reasonable - the categories are lender vocabulary, not buyer vocabulary. This page is the overview. Residential financing covers any loan against a one-to-four unit home you intend to live in, and it divides into agency programmes with published national rules (conventional, FHA, VA, USDA) and non-agency programmes where each investor writes its own (bank statement, asset qualifier, interest-only and the rest).
Not sure if a residential mortgage fits your situation?
How the Decision Usually Goes
In practice the decision resolves quickly once three things are on the table. Eligibility first: military service opens VA, which beats everything else for those who qualify, and a rural address may open USDA. Then credit and deposit together, because they interact - a lower score often prices better under FHA, while a stronger one makes conventional cheaper over time thanks to PMI that cancels. Then how your income is documented, which is where self-employed borrowers usually need a route other than full documentation. That's the whole triage, and it takes about ten minutes on a phone call. Everything after it's a matter of comparing lenders on the route you have identified, which is the part a broker exists to do.
If you would like to explore whether a residential mortgage matches your purchase price, credit profile and long-term budget, reach out to 3E Lending to speak with our licensed Texas mortgage team in Katy.
Residential Home Financing - Quick Reference
Straight answers to what borrowers ask most, each one showing the guideline or investor practice it comes from — so you can see where the answer came from, not just take our word for it.
Credit Score
580 FHA at 3.5% down, 500-579 at 10%. VA, USDA and conventional through DU publish no minimum; overlays set the floor, commonly 620-640. Non-QM 620-700.
Source: HUD 4000.1 II.A.2; Fannie Mae B3-5.1-01; VA Pamphlet 26-7 Ch.4; USDA HB-1-3555 Ch.10 · varies by lender
Credit History / Strength
Government programmes are the most forgiving after a bankruptcy or foreclosure.
Source: HUD 4000.1 II.A.4.b; VA Lenders Handbook M26-7 · varies by lender
Interest Rates
VA is typically lowest for those eligible, and FHA competitive at lower credit tiers. No agency sets or guarantees any of it.
Source: Market pricing - no agency sets rates · varies by lender
Income / Employment Verification
2 years is typical across agency routes; 12 months is possible with compensating factors. Alternative documentation on non-QM.
Source: Fannie Mae B3-3.2-02; HUD 4000.1 II.A.5.b; VA Pamphlet 26-7 Ch.4; USDA HB-1-3555 Ch.9 · varies by lender
Self Employment Qualifications
2 years of returns, or bank statements and assets on the non-QM routes.
Source: Fannie Mae B3-3.2-01; investor overlays · varies by lender
Documentation Difficulty
Full doc across agency programmes; varies considerably on non-QM.
Source: Fannie Mae / HUD guidelines · varies by lender
Debt to Income (DTI)
41% VA guideline, 43-56.9% FHA, 45-50% conventional.
Source: VA M26-7 Ch.4; HUD 4000.1 II.A.5; Fannie Mae DU · varies by lender
Down Payment Requirement
0% VA and USDA, 3% Conventional 97, 3.5% FHA, 10-20% non-QM.
Source: Fannie Mae B5-6-01 and Eligibility Matrix; HUD 4000.1 II.A.2; 7 CFR 3555; 38 U.S.C. 3710 · varies by lender
Down Payment Collateral Alternatives
Gifts, grants and Texas assistance programmes, by route.
Source: HUD 4000.1 II.A.4.d; TDHCA · varies by lender
Out of Pocket Fees
Closing costs of 2-5%, plus mortgage insurance where applicable.
Source: Typical market range - the Loan Estimate discloses actual costs · varies by lender
Process Speed / Timeframe
30-45 days on agency routes; non-QM is similar but manually underwritten.
Source: Industry standard, 2026 · varies by lender
Figures on this page reviewed by Kimberli Pham, Mortgage Broker · NMLS ID 2459395, on . Program terms are set by the lender a file is placed with and change over time — each figure cites its source above.
The figures above are program guidelines and illustrative examples, not a quote. Actual terms vary by circumstances - your credit profile, income, the property, occupancy, loan amount, and the lender the file is placed with. Individual lenders also apply their own overlays on top of agency minimums. Nothing on this page is a commitment to lend. Approval depends on completion of underwriting, and not every applicant qualifies.
What Our Clients Say
Real reviews from 3E Lending borrowers, verified on Google.
“This was by far the smoothest, most straightforward, and best-informed lending experience I have had. Kimberli's knowledge, professionalism, and commitment to customer service were evident at every stage.”
Neil Milan
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“She went above and beyond by conducting a thorough industry comparison to secure the absolute best rate for my unique situation. The whole mortgage process was better than any I've experienced before — transparent and easy, even with my issues. I will be back again!”
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