My City Home Loans | Common Questions

Real Estate Basics & Mortgage Process

How long does the mortgage process take?

Pre-approval takes less than 24 hours. Most loans at My City Home Loans close in 20–30 days. Need it faster? We’ll prioritize your file and can often close even quicker. Apply today and get moving faster.

What is the difference between pre-qualification and pre-approval?

Pre-qualification is an informal estimate of how much you might be able to borrow based on basic financial information you provide.Pre-approval involves a more thorough review of your financial documents and results in a conditional commitment from the lender for a specific loan amount.

What documents do I need to apply for a mortgage?

Commonly required documents include proof of income (such as pay stubs or tax returns), employment verification, bank statements, identification (like a driver’s license or passport), and information about your assets and debts.

What is an appraisal gap and how does it affect me?

An appraisal gap happens when the home appraises for less than your offer. We’ll help you understand how to cover the gap with options like gap clauses, appraisal waivers, or adjusting your loan amount.

What factors determine mortgage eligibility?

Mortgage eligibility depends on several factors, including your credit score, income, employment history, debt-to-income ratio, down payment amount, and the property’s appraised value.

How do I start the mortgage application process and get pre-approved?

It’s easy! Apply online with My City Home Loans in just a few minutes. We’ll review your information, check your credit, and look over your income and assets to create a personalized plan. Our pre-approval process is fast and simple—often completed the same day! Apply Now!

What is a mortgage pre-approval letter?

A pre-approval letter shows sellers you’re a serious buyer. It confirms that you’ve been vetted by a lender and qualify for a specific loan amount. It can help your offer stand out in a competitive market.

What is Private Mortgage Insurance (PMI), and when is it required?

PMI is insurance that protects the lender if the borrower defaults on the loan. It’s typically required when the down payment is less than 20% of the home’s purchase price.

How does my credit score affect my ability to get a mortgage, and what credit score do I need to buy a house?

Your credit score plays a key role in mortgage approval and the interest rates you qualify for. Most loan programs start at 580 for FHA, 620 for conventional, and 640 for USDA—but higher scores typically lead to better loan terms and lower rates. If you have a low credit score or past credit challenges, don’t worry—there are loan programs like FHA and specialized options designed for borrowers with less-than-perfect credit. Plus, we offer credit repair services to help improve your score and increase your chances of qualifying for the best possible rates. Want to see where you stand? Apply now!

Loan Programs & Special Home Buying Options

What is the difference between FHA and conventional loans?

FHA loans are government-backed and typically easier to qualify for, with lower credit score requirements. Conventional loans may offer more flexibility and no upfront mortgage insurance if you have strong credit.

What home loan programs are available in Michigan?

Michigan homebuyers have access to a wide range of mortgage options, including conventional loans, FHA loans (low down payment), VA loans (for veterans), USDA loans (for rural areas), jumbo loans, renovation loans, and construction loans. We also offer down payment assistance and first-time homebuyer programs through the state and other partners. At My City Home Loans, we help you compare all your options to find the right fit for your goals.

Does My City Home Loans offer Commercial Loans?

Yes! We offer commercial and mixed-use property financing with flexible documentation requirements. We work with investors, business owners, and developers across a wide range of property types. Let’s talk about funding your next project.

What’s the 0% Down Loan Program?

This program helps homebuyers with no down payment and covers closing costs through down payment assistance (DPA). It’s available to both first-time and repeat buyers in select areas. FHA and conventional options available with a minimum 640 credit score.

Can I get a mortgage if I don’t have a Social Security Number? (ITIN Loan)

Yes, our ITIN loan program helps non-resident buyers qualify using an Individual Taxpayer Identification Number. We offer options based on 1-year tax returns, 12-month bank statements, or P&L. Reach out to see if our ITIN loan is the right fit for you.

How does a Bridge Loan work?

Our 0% interest Bridge Loan allows you to buy a new home before selling your current one—without a financing contingency. You retain equity and can prep your current home for top dollar. Our Bridge is different as you only need to qualify for the new mortgage not your current and the new home so you can offer non-contingent.

Can I get a mortgage if I’m self-employed (1099) or don’t have traditional tax returns?

Yes! At My City Home Loans, we offer flexible loan programs designed specifically for self-employed borrowers, 1099 earners, business owners, and others who may not have traditional tax returns. Options include bank statement loans, 1099-only loans, and asset-based mortgages—helping qualified buyers who don’t fit the standard documentation requirements find the best loan fit.

What loan is best for first-time homebuyers?

The best loan depends on your goals, credit, and budget. Popular options include FHA loans, 3% down conventional loans, USDA loans (for eligible areas), and VA loans (for eligible veterans). At My City Home Loans, we offer over 100 loan programs and will walk you through your options to find the perfect fit for your situation—whether you're looking for the lowest down payment, the best monthly payment, or the fastest approval.

What loans are available for building a new construction house?

We offer 1- and 2-time close construction loans up to $1.5M with 95% financing, locked rates upfront, and no PMI for 720+ scores. Available for primary and second homes. Thinking about building? Let’s run numbers for your custom home loan.

What is the 1% Down Loan and how can I qualify?

Our 1% Down Loan helps you become a homeowner with just 1% down—My City covers the other 2% to meet the 3% minimum required on conventional loans. No first-time buyer requirement. Available for loan amounts up to $350,000 with a minimum 640 credit score and income below 80% of the area median income. Ask us how to check your eligibility—it only takes a few minutes.

What is a DSCR Loan and how does it work?

DSCR (Debt-Service Coverage Ratio) Loans allow investors to qualify based on rental income, not personal income. No tax returns, W-2’s Paystubs or job history needed. Minimum 620 credit score, up to 85% LTV, and 1.0 DSCR to qualify. Ideal for first-time or experienced investors—ask for a rental property quote today.

Is there a way to turn myself into a cash buyer if I don’t have that amount of cash?

Yes! Our My City Cash Offer Program lets you compete like a cash buyer by using our internal funds to purchase the home on your behalf once you’re fully underwritten and approved. This means your offer has no financing contingency, making it much stronger in competitive markets.
We also offer the My City Advantage Loan, which allows us to close with cash on your behalf so you can secure the home quickly and then refinance into a mortgage afterward. This program offers up to 80% loan-to-value with interest-only or deferred interest payments, ideal for buyers needing a non-contingent offer. Ask us how to see if you qualify!

What is the LMIT Loan and where is it available?

The LMIT (Low-to-Moderate Income Tract) Loan offers lender credits to help cover closing costs for buyers purchasing in eligible neighborhoods. You don’t have to be low income—it’s based on the property location. Ask if your dream home qualifies for extra savings.

Home Buying Costs & Affordability

How much house and at what price can I afford?

Your affordability depends on income, debt, down payment, and current interest rates. At My City Home Loans, we’ll run a quick, personalized analysis to give you a clear budget and monthly payment range—no strings attached. Start with our affordability calculator or talk to a loan expert today.

What are closing costs and fees associated with getting a mortgage?

Closing costs typically range from 2% to 5% of the home price and include fees such as loan origination, appraisal, title, and prepaid expenses like property taxes and homeowners insurance. We’ll provide you with a detailed breakdown of what to expect based on your situation and show you ways to reduce or roll these costs into your loan. Get a full closing cost estimate tailored to you.

How much do I need for a down payment on a house?

You may only need 3% down with a conventional loan or even 0% with VA, USDA and other Down Payment Assistance programs. At My City, we’ll help you find the lowest down payment option available—and even explore down payment assistance programs if needed. Apply now and we’ll build your custom plan in minutes.

Can I buy a house with student loans?

Yes! Student loans are factored into your debt-to-income ratio, but they don’t automatically disqualify you. We’ll show you how to structure your application to get approved—even with student debt. Let us take a look at your numbers—it’s free and could get you closer to homeownership.

Common Questions

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