You do not need 20% down
This is the single most persistent myth in the business. Conventional loans start at 3% for qualified buyers, FHA at 3.5%, and VA and USDA at nothing at all.
Twenty percent is the point at which mortgage insurance stops on a conventional loan. It has never been a requirement to buy.
- Conventional: from 3% down
- FHA: 3.5%, and it can be gifted
- VA: nothing down for eligible service members and veterans
- USDA: nothing down inside eligible areas
- THDA Great Choice Plus: $6,000 at 0%, forgiven at thirty years
The number that surprises people
Property tax is collected monthly through escrow and it varies enormously across this metro. Shelby County runs about 1.30% of value a year. DeSoto County is about 0.75%. Fayette is 0.60%.
On a $300,000 house that spread is roughly $175 a month between the highest and lowest. It decides what you qualify for before anyone talks about interest rates.
What to do first
Find out what you can borrow before you look at houses. Not because the paperwork is fun, but because shopping without a number wastes months and loses the house you actually wanted.
It takes a conversation, not an application, and it does not require a credit pull to start.
Questions people ask
What credit score do I need?
There is no single cutoff. FHA reaches further down than conventional and compensating factors matter, so the answer comes from your actual file.
Will checking hurt my credit?
No. The first conversation does not involve a credit pull. A hard inquiry only happens later, with your permission.
How much are closing costs?
They vary by loan and state, and sellers frequently contribute toward them. It is a negotiating point rather than a fixed bill.
This is not a commitment to lend. All loans are subject to credit approval, income and asset verification, property appraisal, and program guidelines. Rates, terms, programs and eligibility are subject to change without notice.
Get your numbers
Six questions. Jason answers personally, usually the same day.
Thanks — that is on its way to Jason. He will reach out shortly with your numbers.