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Citi’s offerings and lending guidelines may differ.","content:disclosures:global-floating-disclosure.json","Global Floating Disclosure","disclosures/global-floating-disclosure.json",{"title":91,"subtext":7,"portraitImage":92,"imageAlt":93,"imageWidth":94,"background":95,"borderRadius":96,"maxWidth":97,"paddingTopBottom":98,"paddingLeftRight":98,"gap":98,"variant":99},"Citi is #1 in Customer Satisfaction with Mortgage Origination - ***[J.D. Power 2025 Award](https://www.jdpower.com/business/awards)***","/media/jdpower-trophy.png","J.D. Power 2025 Trophy",48,"var(--brand-default)",0,650,16,"default",{"data":101,"body":103,"excerpt":-1,"toc":156},{"title":7,"description":102},"Key insights:",{"type":104,"children":105},"root",[106,117,137,142],{"type":107,"tag":108,"props":109,"children":110},"element","p",{},[111],{"type":107,"tag":112,"props":113,"children":114},"strong",{},[115],{"type":116,"value":102},"text",{"type":107,"tag":118,"props":119,"children":120},"ul",{},[121,127,132],{"type":107,"tag":122,"props":123,"children":124},"li",{},[125],{"type":116,"value":126},"Home warranties typically cover the cost of repairing or replacing some major home systems, appliances or both",{"type":107,"tag":122,"props":128,"children":129},{},[130],{"type":116,"value":131},"Unlike homeowners insurance, home warranties are usually optional",{"type":107,"tag":122,"props":133,"children":134},{},[135],{"type":116,"value":136},"You’ll generally pay a yearly premium along with a service fee for each repair",{"type":107,"tag":108,"props":138,"children":139},{},[140],{"type":116,"value":141},"A home warranty can feel like a lifesaver when your fridge stops cooling the day before guests arrive or your AC quits during the first hot week of summer. Instead of footing the entire repair bill yourself, a home warranty may help pay for the repair or replacement of certain major home systems and appliances when they break down from normal wear and tear.",{"type":107,"tag":108,"props":143,"children":144},{},[145,147,154],{"type":116,"value":146},"One important note up front: A home warranty ",{"type":107,"tag":148,"props":149,"children":151},"a",{"href":150},"/home-buying/articles/home-warranty-vs-home-insurance/",[152],{"type":116,"value":153},"isn’t the same thing",{"type":116,"value":155}," as homeowners insurance. They can work well together, but they protect your home in different ways. Read on for more details.",{"title":7,"searchDepth":157,"depth":157,"links":158},2,[],{"data":160,"body":162,"excerpt":-1,"toc":173},{"title":7,"description":161},"A home warranty is a service contract that helps pay for the repair or replacement of certain home systems and appliances when they break down due to normal wear and tear.",{"type":104,"children":163},[164,168],{"type":107,"tag":108,"props":165,"children":166},{},[167],{"type":116,"value":161},{"type":107,"tag":108,"props":169,"children":170},{},[171],{"type":116,"value":172},"These plans usually run for a year at a time and can be renewed. They’re optional, but the appeal is simple: instead of paying the full cost of a repair out of pocket, you may only need to pay a  service fee. Then the warranty provider covers the rest for eligible claims, up to plan limits.",{"title":7,"searchDepth":157,"depth":157,"links":174},[],{"data":176,"body":178,"excerpt":-1,"toc":263},{"title":7,"description":177},"Most plans fall into two buckets: major home systems and home appliances. Coverage can be “systems-only,” “appliances-only,” or a combined plan, depending on the provider.",{"type":104,"children":179},[180,184,191,196,219,225,230,258],{"type":107,"tag":108,"props":181,"children":182},{},[183],{"type":116,"value":177},{"type":107,"tag":185,"props":186,"children":188},"h3",{"id":187},"major-home-systems",[189],{"type":116,"value":190},"Major home systems",{"type":107,"tag":108,"props":192,"children":193},{},[194],{"type":116,"value":195},"Here are some of the common home systems included in a home warranty:",{"type":107,"tag":118,"props":197,"children":198},{},[199,204,209,214],{"type":107,"tag":122,"props":200,"children":201},{},[202],{"type":116,"value":203},"HVAC (heating and cooling)",{"type":107,"tag":122,"props":205,"children":206},{},[207],{"type":116,"value":208},"Electrical systems",{"type":107,"tag":122,"props":210,"children":211},{},[212],{"type":116,"value":213},"Plumbing systems",{"type":107,"tag":122,"props":215,"children":216},{},[217],{"type":116,"value":218},"Water heaters",{"type":107,"tag":185,"props":220,"children":222},{"id":221},"home-appliances",[223],{"type":116,"value":224},"Home appliances",{"type":107,"tag":108,"props":226,"children":227},{},[228],{"type":116,"value":229},"Home warranties usually cover certain larger home appliances, such as:",{"type":107,"tag":118,"props":231,"children":232},{},[233,238,243,248,253],{"type":107,"tag":122,"props":234,"children":235},{},[236],{"type":116,"value":237},"Refrigerators",{"type":107,"tag":122,"props":239,"children":240},{},[241],{"type":116,"value":242},"Ovens and stoves",{"type":107,"tag":122,"props":244,"children":245},{},[246],{"type":116,"value":247},"Dishwashers",{"type":107,"tag":122,"props":249,"children":250},{},[251],{"type":116,"value":252},"Washers and dryers",{"type":107,"tag":122,"props":254,"children":255},{},[256],{"type":116,"value":257},"Built-in microwaves",{"type":107,"tag":108,"props":259,"children":260},{},[261],{"type":116,"value":262},"Coverage details can be surprisingly specific. Your service agreement is the final word on what counts as covered.",{"title":7,"searchDepth":157,"depth":157,"links":264},[265,267],{"id":187,"depth":266,"text":190},3,{"id":221,"depth":266,"text":224},{"data":269,"body":271,"excerpt":-1,"toc":330},{"title":7,"description":270},"A home warranty is helpful, but it’s not designed to cover everything. Common exclusions include:",{"type":104,"children":272},[273,277],{"type":107,"tag":108,"props":274,"children":275},{},[276],{"type":116,"value":270},{"type":107,"tag":118,"props":278,"children":279},{},[280,290,300,310,320],{"type":107,"tag":122,"props":281,"children":282},{},[283,288],{"type":107,"tag":112,"props":284,"children":285},{},[286],{"type":116,"value":287},"Pre-existing conditions:",{"type":116,"value":289}," Issues that show up in inspections or disclosures before you move in likely won’t qualify.",{"type":107,"tag":122,"props":291,"children":292},{},[293,298],{"type":107,"tag":112,"props":294,"children":295},{},[296],{"type":116,"value":297},"Improper installation or poor maintenance:",{"type":116,"value":299}," If you DIY installed a new dryer and didn’t vent it properly, for instance, any resulting damage might not be covered.",{"type":107,"tag":122,"props":301,"children":302},{},[303,308],{"type":107,"tag":112,"props":304,"children":305},{},[306],{"type":116,"value":307},"Cosmetic problems:",{"type":116,"value":309}," A dent or scratch on your stove likely won’t be covered\nby your home warranty as long as the appliance is still functional.",{"type":107,"tag":122,"props":311,"children":312},{},[313,318],{"type":107,"tag":112,"props":314,"children":315},{},[316],{"type":116,"value":317},"Structural issues:",{"type":116,"value":319}," Home warranties generally cover systems and\nappliances, not larger problems with the home itself, like the foundation.",{"type":107,"tag":122,"props":321,"children":322},{},[323,328],{"type":107,"tag":112,"props":324,"children":325},{},[326],{"type":116,"value":327},"Damage from natural disasters:",{"type":116,"value":329}," If your home is damaged by a flood, hurricane or fire, that usually falls under the purview of homeowners insurance.",{"title":7,"searchDepth":157,"depth":157,"links":331},[],{"data":333,"body":335,"excerpt":-1,"toc":380},{"title":7,"description":334},"Here’s how a home warranty works in practice:",{"type":104,"children":336},[337,341,370,375],{"type":107,"tag":108,"props":338,"children":339},{},[340],{"type":116,"value":334},{"type":107,"tag":342,"props":343,"children":344},"ol",{},[345,350,355,360,365],{"type":107,"tag":122,"props":346,"children":347},{},[348],{"type":116,"value":349},"A system or appliance covered by your home warranty fails from normal use.",{"type":107,"tag":122,"props":351,"children":352},{},[353],{"type":116,"value":354},"You submit a service request to your warranty company.",{"type":107,"tag":122,"props":356,"children":357},{},[358],{"type":116,"value":359},"The company sends a technician (often from its network) to diagnose the issue.",{"type":107,"tag":122,"props":361,"children":362},{},[363],{"type":116,"value":364},"You pay a service fee (similar to a copay at the doctor’s office).",{"type":107,"tag":122,"props":366,"children":367},{},[368],{"type":116,"value":369},"If the claim is approved, the warranty company pays for the repair or replacement, up to the plan’s limits.",{"type":107,"tag":108,"props":371,"children":372},{},[373],{"type":116,"value":374},"A practical detail to know: even if an item is replaced, the replacement may not match your original brand, color or size, and plans often include coverage limits that can leave you paying the difference.",{"type":107,"tag":108,"props":376,"children":377},{},[378],{"type":116,"value":379},"Before you buy, read the plan’s coverage limits (the max it will pay per item) and the “not covered” list. Those two sections usually determine whether a plan will cause more headaches than it’s worth, so it’s a good idea to read them carefully.",{"title":7,"searchDepth":157,"depth":157,"links":381},[],{"data":383,"body":385,"excerpt":-1,"toc":398},{"title":7,"description":384},"Costs can vary based on the provider, location and coverage level, but here’s a baseline to keep in mind:",{"type":104,"children":386},[387,391],{"type":107,"tag":108,"props":388,"children":389},{},[390],{"type":116,"value":384},{"type":107,"tag":392,"props":393,"children":397},"inline-table",{":headers":394,":rows":395,"table-layout":396},"[{\"value\":\"Feature\"},{\"value\":\"Cost\"}]","[{\"column\":{\"valueOne\":\"Annual premium\",\"valueTwo\":\"Often $300–$700 per year\"}},{\"column\":{\"valueOne\":\"Service call fee\",\"valueTwo\":\"Often $75–$125 per visit\"}},{\"column\":{\"valueOne\":\"Optional add-ons\",\"valueTwo\":\"Can add $40–$200+ per year, depending on what you include (think pool equipment, extra appliances, or specialized coverage)\"}}]","basic",[],{"title":7,"searchDepth":157,"depth":157,"links":399},[],{"data":401,"body":403,"excerpt":-1,"toc":432},{"title":7,"description":402},"A home warranty can be especially appealing if you:",{"type":104,"children":404},[405,409],{"type":107,"tag":108,"props":406,"children":407},{},[408],{"type":116,"value":402},{"type":107,"tag":118,"props":410,"children":411},{},[412,417,422,427],{"type":107,"tag":122,"props":413,"children":414},{},[415],{"type":116,"value":416},"Are a first-time homeowner getting used to the reality of home repairs",{"type":107,"tag":122,"props":418,"children":419},{},[420],{"type":116,"value":421},"Bought an older home with aging systems and appliances",{"type":107,"tag":122,"props":423,"children":424},{},[425],{"type":116,"value":426},"Don’t have a big emergency fund for home repairs yet",{"type":107,"tag":122,"props":428,"children":429},{},[430],{"type":116,"value":431},"Are selling a home and want to provide an extra perk that can help to reassure buyers",{"title":7,"searchDepth":157,"depth":157,"links":433},[],{"data":435,"body":437,"excerpt":-1,"toc":462},{"title":7,"description":436},"It can be easy to confuse home warranties and homeowners insurance—after all, they both protect your property and help you avoid paying out of pocket when something in your home is damaged. But they’re two different products, and many homeowners use both.",{"type":104,"children":438},[439,452,457],{"type":107,"tag":108,"props":440,"children":441},{},[442,444,450],{"type":116,"value":443},"It can be easy to confuse home warranties and ",{"type":107,"tag":148,"props":445,"children":447},{"href":446},"/home-buying/articles/what-is-homeowners-insurance/",[448],{"type":116,"value":449},"homeowners insurance",{"type":116,"value":451},"—after all, they both protect your property and help you avoid paying out of pocket when something in your home is damaged. But they’re two different products, and many homeowners use both.",{"type":107,"tag":108,"props":453,"children":454},{},[455],{"type":116,"value":456},"Here’s a quick look at some of the key differences:",{"type":107,"tag":392,"props":458,"children":461},{":headers":459,":rows":460,"table-layout":396},"[{\"value\":\"Home warranty\"},{\"value\":\"Homeowners insurance\"}]","[{\"column\":{\"valueOne\":\"Usually optional\",\"valueTwo\":\"Often required by mortgage lenders\"}},{\"column\":{\"valueOne\":\"Covers repairs or replacement for certain appliances and major home systems due to normal wear and tear\",\"valueTwo\":\"Covers damage from unexpected events like\\nfire, storms or theft\"}},{\"column\":{\"valueOne\":\"Designed for normal wear and tear\",\"valueTwo\":\"Designed for disasters and major property losses\"}}]",[],{"title":7,"searchDepth":157,"depth":157,"links":463},[],{"data":465,"body":467,"excerpt":-1,"toc":516},{"title":7,"description":466},"Before you pick a plan, it helps to:",{"type":104,"children":468},[469,473],{"type":107,"tag":108,"props":470,"children":471},{},[472],{"type":116,"value":466},{"type":107,"tag":118,"props":474,"children":475},{},[476,486,496,506],{"type":107,"tag":122,"props":477,"children":478},{},[479,484],{"type":107,"tag":112,"props":480,"children":481},{},[482],{"type":116,"value":483},"Compare coverage limits and exclusions:",{"type":116,"value":485}," Pricey systems and appliances, like HVAC or some kitchen amenities, might not be covered at all, or the coverage limit might not offset the cost of a repair.",{"type":107,"tag":122,"props":487,"children":488},{},[489,494],{"type":107,"tag":112,"props":490,"children":491},{},[492],{"type":116,"value":493},"Check what requires add-ons:",{"type":116,"value":495}," Does the policy cover roof leak repair? If your house runs on septic or has well water, does that require an add-on? Do you have a pool or specialty appliances that might need additional coverage?",{"type":107,"tag":122,"props":497,"children":498},{},[499,504],{"type":107,"tag":112,"props":500,"children":501},{},[502],{"type":116,"value":503},"Read reviews with a specific lens:",{"type":116,"value":505}," Online reviews can help you gauge response time, technician quality and how fairly claims are handled.",{"type":107,"tag":122,"props":507,"children":508},{},[509,514],{"type":107,"tag":112,"props":510,"children":511},{},[512],{"type":116,"value":513},"Understand the service fee:",{"type":116,"value":515}," How much is the service fee? 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You often pay a service fee of between $75 and $125 per claim.\"}]","Home warranty FAQs",[],{"title":7,"searchDepth":157,"depth":157,"links":529},[],{"data":531,"body":532,"toc":538},{"title":7,"description":86},{"type":104,"children":533},[534],{"type":107,"tag":108,"props":535,"children":536},{},[537],{"type":116,"value":86},{"title":7,"searchDepth":157,"depth":157,"links":539},[],{"data":541,"body":543,"toc":549},{"title":7,"description":542},"Citi is #1 in Customer Satisfaction with Mortgage Origination - J.D. Power",{"type":104,"children":544},[545],{"type":107,"tag":108,"props":546,"children":547},{},[548],{"type":116,"value":542},{"title":7,"searchDepth":157,"depth":157,"links":550},[],{"data":552,"body":554,"toc":571},{"title":7,"description":553},"For J.D. Power 2025 award information, visit jdpower.com/awards.",{"type":104,"children":555},[556],{"type":107,"tag":108,"props":557,"children":558},{},[559,561,569],{"type":116,"value":560},"For J.D. Power 2025 award information, visit ",{"type":107,"tag":148,"props":562,"children":566},{"href":563,"rel":564},"https://www.jdpower.com/business/awards",[565],"nofollow",[567],{"type":116,"value":568},"jdpower.com/awards",{"type":116,"value":570},".",{"title":7,"searchDepth":157,"depth":157,"links":572},[],{"_path":574,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"slug":99,"content":575,"_id":576,"_type":78,"title":577,"_source":80,"_file":578,"_extension":78},"/disclosures/default","This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.\n\nTerms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.","content:disclosures:default.json","Default","disclosures/default.json",{"_path":580,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"content":581,"slug":582,"_id":583,"_type":78,"title":584,"_source":80,"_file":585,"_extension":78},"/disclosures/spanish-language-disclosure","\u003Csup>†\u003C/sup>Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.\n\n\u003Cspan lang=\"es\">Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.\u003C/span>","spanish-language-disclosure","content:disclosures:spanish-language-disclosure.json","Spanish Language Disclosure","disclosures/spanish-language-disclosure.json",{"data":587,"body":589,"toc":600},{"title":7,"description":588},"This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.",{"type":104,"children":590},[591,595],{"type":107,"tag":108,"props":592,"children":593},{},[594],{"type":116,"value":588},{"type":107,"tag":108,"props":596,"children":597},{},[598],{"type":116,"value":599},"Terms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.",{"title":7,"searchDepth":157,"depth":157,"links":601},[],{"data":603,"body":605,"toc":628},{"title":7,"description":604},"†Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":104,"children":606},[607,618],{"type":107,"tag":108,"props":608,"children":609},{},[610,616],{"type":107,"tag":611,"props":612,"children":613},"sup",{},[614],{"type":116,"value":615},"†",{"type":116,"value":617},"Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":107,"tag":108,"props":619,"children":620},{},[621],{"type":107,"tag":622,"props":623,"children":625},"span",{"lang":624},"es",[626],{"type":116,"value":627},"Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.",{"title":7,"searchDepth":157,"depth":157,"links":629},[],{"data":631,"body":633,"excerpt":-1,"toc":639},{"title":7,"description":632},"Annual premium",{"type":104,"children":634},[635],{"type":107,"tag":108,"props":636,"children":637},{},[638],{"type":116,"value":632},{"title":7,"searchDepth":157,"depth":157,"links":640},[],{"data":642,"body":644,"excerpt":-1,"toc":650},{"title":7,"description":643},"Often $300–$700 per year",{"type":104,"children":645},[646],{"type":107,"tag":108,"props":647,"children":648},{},[649],{"type":116,"value":643},{"title":7,"searchDepth":157,"depth":157,"links":651},[],{"data":653,"body":655,"excerpt":-1,"toc":661},{"title":7,"description":654},"Service call fee",{"type":104,"children":656},[657],{"type":107,"tag":108,"props":658,"children":659},{},[660],{"type":116,"value":654},{"title":7,"searchDepth":157,"depth":157,"links":662},[],{"data":664,"body":666,"excerpt":-1,"toc":672},{"title":7,"description":665},"Often $75–$125 per visit",{"type":104,"children":667},[668],{"type":107,"tag":108,"props":669,"children":670},{},[671],{"type":116,"value":665},{"title":7,"searchDepth":157,"depth":157,"links":673},[],{"data":675,"body":677,"excerpt":-1,"toc":683},{"title":7,"description":676},"Optional add-ons",{"type":104,"children":678},[679],{"type":107,"tag":108,"props":680,"children":681},{},[682],{"type":116,"value":676},{"title":7,"searchDepth":157,"depth":157,"links":684},[],{"data":686,"body":688,"excerpt":-1,"toc":694},{"title":7,"description":687},"Can add $40–$200+ per year, depending on what you include (think pool equipment, extra appliances, or specialized coverage)",{"type":104,"children":689},[690],{"type":107,"tag":108,"props":691,"children":692},{},[693],{"type":116,"value":687},{"title":7,"searchDepth":157,"depth":157,"links":695},[],{"data":697,"body":699,"excerpt":-1,"toc":705},{"title":7,"description":698},"Usually optional",{"type":104,"children":700},[701],{"type":107,"tag":108,"props":702,"children":703},{},[704],{"type":116,"value":698},{"title":7,"searchDepth":157,"depth":157,"links":706},[],{"data":708,"body":710,"excerpt":-1,"toc":716},{"title":7,"description":709},"Often required by mortgage lenders",{"type":104,"children":711},[712],{"type":107,"tag":108,"props":713,"children":714},{},[715],{"type":116,"value":709},{"title":7,"searchDepth":157,"depth":157,"links":717},[],{"data":719,"body":721,"excerpt":-1,"toc":727},{"title":7,"description":720},"Covers repairs or replacement for certain appliances and major home systems due to normal wear and tear",{"type":104,"children":722},[723],{"type":107,"tag":108,"props":724,"children":725},{},[726],{"type":116,"value":720},{"title":7,"searchDepth":157,"depth":157,"links":728},[],{"data":730,"body":732,"excerpt":-1,"toc":738},{"title":7,"description":731},"Covers damage from unexpected events like\nfire, storms or theft",{"type":104,"children":733},[734],{"type":107,"tag":108,"props":735,"children":736},{},[737],{"type":116,"value":731},{"title":7,"searchDepth":157,"depth":157,"links":739},[],{"data":741,"body":743,"excerpt":-1,"toc":749},{"title":7,"description":742},"Designed for normal wear and tear",{"type":104,"children":744},[745],{"type":107,"tag":108,"props":746,"children":747},{},[748],{"type":116,"value":742},{"title":7,"searchDepth":157,"depth":157,"links":750},[],{"data":752,"body":754,"excerpt":-1,"toc":760},{"title":7,"description":753},"Designed for disasters and major property losses",{"type":104,"children":755},[756],{"type":107,"tag":108,"props":757,"children":758},{},[759],{"type":116,"value":753},{"title":7,"searchDepth":157,"depth":157,"links":761},[],[763,815,874,917,962,1020,1102,1156,1212,1259,1308],{"_path":764,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":766,"l1":765,"linkNav":767,"heroMedia":771,"teaserImage":774,"slug":776,"sections":777,"hideFooterJdPower":6,"date":793,"subheadline":794,"headline":795,"isFeatured":6,"tags":796,"link":798,"seo":801,"hasSectionNavigation":27,"_id":804,"_type":78,"title":805,"_source":80,"_file":806,"_extension":78,"tagsDetails":807},"/articles/home-buying/what-is-5-6-arm","home-buying",4,{"introText":768,"text":769,"to":770},"Ready for the next step?","Connect with a Citi Specialist","/contact",{"landscape":772,"portrait":773},"/media/what-is-a-5-1-adjustable-rate-mortgage-mobile.jpg","/media/what-is-a-5-1-adjustable-rate-mortgage-desktop.jpg",{"src":775},"/media/what-is-a-5-1-adjustable-rate-mortgage-teaser.jpg","what-is-5-6-arm",[778,781,784,787,790],{"title":779,"content":780},"How a 5/6 ARM works","A 5/6 ARM is a type of [adjustable-rate mortgage](/home-loans/adjustable-rate/) (ARM). The way it works is right in the name:\n\n* “5” — Your interest rate stays fixed for the first five years\n* “6” — After that, it can adjust once every six months for the rest of the loan term   \n\nDuring those first five years, your interest rate stays stable, much like a fixed-rate mortgage. But after that, the [interest rate](/home-buying/articles/apr-vs-interest-rate/) is tied to a market index (such as the Secured Overnight Financing Rate, or SOFR) plus a margin set by your lender. Once every six months, your interest rate can move up or down according to the index—and with it, your monthly payment.\n\n::tip{icon=\"Bulb\" title=\"PRO TIP:\" text=\"The market index changes with the economy, so it can go up or down. The margin is a set rate added by your lender that doesn’t change. Together, they determine your mortgage rate. Keep an eye on both the index and margin to help predict your future payments.\"}\n::\n\n### Initial fixed-rate period  \n\nFor the first five years, you get predictability and consistency. This is often the sweet spot for buyers who plan to sell or refinance before the first adjustment kicks in.  \n\n### Adjustment period  \n\nOnce the fixed period ends, your rate adjusts every six months. The new rate is calculated using a benchmark index combined with a lender margin. If [market rates](/rates/) rise, your monthly payment may increase. If they fall, you could pay less.  \n\n### Rate caps  \n\nBecause predictability matters, ARMs come with built-in protections called rate caps, which limit how much your rate can change. There are three kinds to know:\n\n* **Initial adjustment cap:** Limits how much your rate can rise after the fixed period ends (often around 2%)\n* **Annual adjustment cap:** Limits increases in any single year (commonly 2%)\n* **Lifetime cap:** Limits how much your rate can ever rise over the life of the loan (often 5%).\n\nThese caps prevent sudden, dramatic jumps in the size of payments, which can help you plan ahead even in a changing rate environment.",{"title":782,"content":783},"Why the initial rate is usually lower","A 5/6 ARM typically starts with a lower interest rate than a [30-year](/home-loans/articles/15-vs-30-year-mortgage/) [fixed mortgage](https://www.mortgage.com/home-loans/fixed-rate/). That’s because the lender shares some of the risk with you, and you get a discount upfront in exchange for taking on possible rate changes later.  \n\nFor many buyers, that tradeoff is worthwhile. Lower early payments can make it easier to:  \n\n* Qualify for a home you love\n* Manage cash flow in the early years of owning a home\n* Save up for other needs",{"title":785,"content":786},"Who might benefit from a 5/6 ARM?","A 5/6 ARM isn’t for everyone, but it can be a smart fit for certain financial goals or timelines. You might consider one if you:\n\n* **Plan to sell your home within five to seven years:** If you’ll move before the first rate adjustment, you can enjoy the lower fixed period without facing rate changes.\n* **Expect your income to grow:** If you’re early in your career or anticipate higher earnings soon, you may be more comfortable with future rate adjustments.\n* **Plan to [refinance](/refinancing/):** Many homeowners refinance to a fixed-rate mortgage before their interest rate changes.\n* **Are comfortable with some uncertainty:** Adjustable rates mean flexibility and some variability. If you’re financially prepared, that flexibility can be an advantage.",{"title":788,"content":789},"5/6 ARM vs. fixed-rate mortgage","Let’s take a look at some key differences between ARMs and fixed-rate mortgages.\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Feature\"},{\"value\":\"5/6 ARM \"},{\"value\":\"Fixed-Rate Mortgage\"}]' :rows='[{\"column\":{\"valueOne\":\"Initial interest rate\",\"valueTwo\":\"Typically lower \",\"valueThree\":\"Typically higher\"}},{\"column\":{\"valueOne\":\"Interest rate changes\",\"valueTwo\":\"After year five, adjusted every six months \",\"valueThree\":\"Never\"}},{\"column\":{\"valueOne\":\"Best for\",\"valueTwo\":\"Short-term homeowners or refinancers\",\"valueThree\":\"Long-term homeowners\"}},{\"column\":{\"valueOne\":\"Budgeting\",\"valueTwo\":\"Less predictable long-term\",\"valueThree\":\"Stable and consistent \"}},{\"column\":{\"valueOne\":\"Flexibility\",\"valueTwo\":\"More flexible early on\",\"valueThree\":\"Locked in over time\"}}]'}\n::",{"title":791,"hideTitle":27,"content":792},"5/6 ARM FAQs","::faq{headline=\"5/6 ARM FAQs\" :faqs='[{\"question\":\"Is it a good idea to have a 5/6 ARM?\",\"answer\":\"A 5/6 ARM may be a good fit for you if you’re planning to move or refinance before the first rate adjustment. The best idea for your needs depends on your financial situation and your short- and long-term plans.\"},{\"question\":\"When does the interest rate change on a 5/6 ARM?\",\"answer\":\"The interest rate on a 5/6 ARM is fixed for the first five years. After that, it can change once every six months.\"},{\"question\":\"How long does a 5/6 ARM last?\",\"answer\":\"Typically, a 5/6 ARM has a 30-year loan term, but this may vary based on the lender and your finances.\"}]'}\n::","2026-07-14T13:31:00.000Z","**Key insights:** \n\n* A 5/6 adjustable-rate mortgage (ARM) offers a lower, fixed interest rate for the first five years, which can reduce upfront borrowing costs\n* After the first five years, the interest rate adjusts every six months, but built-in rate caps help limit how much your interest rate and monthly payment can increase\n* A 5/6 ARM may be a good fit if you plan to move, sell or refinance within a few years and want flexibility rather than a long-term fixed rate  \n\nLooking to buy a home but not sure you’ll be there long-term? You might be considering a 5/6 adjustable-rate mortgage (ARM). It offers a lower, stable interest rate for the first five years, then adjusts once every six months after that. Let’s take a look at how a 5/6 ARM works, why its initial rate is typically lower, who it might benefit and how it compares to a traditional fixed-rate mortgage.","What is a 5/6 adjustable-rate mortgage (ARM)?",[797,765],"rates",{"to":770,"introText":799,"body":800,"text":769},"Ready to find the right loan for you?","Whether you’re set on an ARM or weighing your options, we’re here to help.",{"title":802,"description":803},"What Is a 5/6 ARM? | Mortgage.com","Learn what a 5/6 adjustable-rate mortgage (ARM) is, how it works, who it may benefit and how it compares to a traditional fixed-rate home loan.","content:articles:home-buying:what-is-5-6-arm.json","What Is 5 6 Arm","articles/home-buying/what-is-5-6-arm.json",[808,812],{"label":809,"slug":765,"seo":810},"Home Buying",{"description":811},"Learn more about home buying with helpful articles, tools, and guides to support your homeownership journey.",{"label":13,"slug":797,"seo":813},{"description":814},"Stay informed about rates. Explore market trends, rate factors, and tips to lock the best mortgage rate.",{"_path":816,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":817,"l1":765,"linkNav":818,"heroMedia":819,"teaserImage":822,"slug":824,"sections":825,"hideFooterJdPower":6,"date":850,"subheadline":851,"headline":852,"dateModified":7,"isFeatured":6,"tags":853,"link":856,"seo":859,"hasSectionNavigation":27,"_id":862,"_type":78,"title":863,"_source":80,"_file":864,"_extension":78,"tagsDetails":865},"/articles/home-buying/prequalified-for-mortgage",6,{"introText":768,"text":769,"to":770},{"landscape":820,"portrait":821},"/media/how-to-get-prequalified-for-a-mortgage-mobile.jpg","/media/how-to-get-prequalified-for-a-mortgage-desktop.jpg",{"src":823},"/media/how-to-get-prequalified-for-a-mortgage-teaser.jpg","prequalified-for-mortgage",[826,829,832,835,838,841,844,847],{"title":827,"hideTitle":27,"content":828},"What is mortgage prequalification","Mortgage prequalification is a quick, early step where a lender reviews basic financial details (like your income, debts and savings) to estimate how much you may be able to borrow. It’s not a commitment or a guarantee. Instead, it gives you a realistic starting point so you can understand your budget before you dive into serious home buying.\n\nGetting prequalified for mortgage approval replaces guesswork with direction, helping you gain momentum and confidence. You’ll have a clearer sense of your price range, know what lenders generally look for and will be better prepared to focus on homes that fit your financial picture. Whether you’re [buying your first home](/tags/first-time-buyer/) or returning to the market, prequalification helps replace guesswork with clarity, setting the tone for a smoother homebuying journey from the start.",{"title":830,"content":831},"How to get prequalified for a mortgage: step by step","Getting prequalified for a mortgage is usually simpler than many home buyers expect.\n\nThe process is designed to be low-pressure and informational, helping lenders understand your financial snapshot.\n\n1. **Talk to a lender or two:** Many buyers begin by reaching out to one or two lenders they trust. This can be a bank you already work with or a lender recommended by a [real estate professional](/home-buying/articles/what-is-a-real-estate-agent/). At this stage, the goal is a low-pressure exploration, not a commitment.\n\n2. **Share basic financial information.** To get prequalified, you'll usually provide the lender with a few high-level details, such as:\n\n   * Your income or household income\n   * An estimate of your savings and assets\n   * Your current debts, such as credit cards or student loans\n   * A general idea of your planned down payment\n\n   This information helps the lender form a picture of your financial situation. It doesn't need to be perfect or final at this stage.\n\n3. **Receive an estimated loan amount and potential options.** Once the lender reviews your information, they'll typically share an estimated loan amount and possible loan types you may qualify for. This gives you a working price range to guide your home search.\n\n4. **Review your lender's feedback.** Along with your estimated loan amount, your lender may share feedback on your financial profile. This can highlight what's already working in your favor and point out areas that could be strengthened before you move ahead, such as reducing debt.\n\n   Reviewing this guidance helps you understand how lenders view your application and gives you a chance to make small adjustments (if needed) before shaping the rest of your homebuying plan.\n\n5. **Use the estimate to shape your homebuying plan.** Once you're prequalified, you can focus on homes that align with your estimated budget. This way, you'll avoid wasted time and keep expectations grounded as you move forward.",{"title":833,"content":834},"Documents you may need for prequalification","One of the most reassuring things about prequalification is how straightforward it usually is. Many buyers complete this step quickly, sometimes even the same day.\n\n You may be asked for:\n\n* Recent pay stubs or income estimates\n* A general overview of assets and savings\n* Permission for a soft credit check\n* An estimate of how much you plan to put down\n\nBecause prequalification is preliminary, extensive documentation usually isn’t required yet. Think of it as a conversation, not a deep dive.",{"title":836,"content":837},"How to boost your prequalification","If you want to put your best foot forward, a little preparation can go a long way.\n\nChecking your [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/) ahead of time can help you spot any errors or surprises. Paying down high-interest debts where possible may also strengthen your overall financial picture. Even estimating a realistic [down payment amount](/home-buying/articles/how-much-down-payment-for-a-house/) (rather than guessing) can help lenders provide more accurate guidance.\n\nIt’s also smart to avoid major new purchases while preparing to buy. Keeping your financial picture steady makes it easier for lenders to assess your situation clearly. Another good tip is to gather your documents early, so you’re not scrambling to find them during the process.",{"title":839,"content":840},"Prequalification vs. pre-approval: What to remember","Prequalification and pre-approval are often confused, but they serve different purposes.\n\nPrequalification provides a general estimate based on basic, self-reported information. It’s meant to help you plan, understand your potential budget and decide when you’re ready to move forward.\n\n[Pre-approval ](/home-loans/articles/how-to-get-pre-approved/)is typically the next step. It involves a more detailed review of verified  financial documents and offers a clearer picture of what a lender may be willing to provide. Because it shows a higher level of readiness, many sellers ask for pre-approval before considering an offer.\n\nOnce you’ve used prequalification to set expectations and narrow your focus, moving toward pre-approval can help you prepare for making offers with confidence. For eligible buyers, [Citi SureStart® Pre-Approval](https://www.citi.com/mortgage/surestart-preapproval) offers a way to check whether you’re pre-approved and understand what comes next, without skipping steps or feeling rushed.\n\n::card{:isInlineCard=false icon=\"Penpaper\" ctaType=\"text-arrow\" eyebrowIcon=\"\" imagePosition=\"top\" marginSize=\"small\" backgroundColor=\"\" body=\"Speak to your Citi Specialist about getting pre-approved with a Citi SureStart® Pre-Approval. Unlike many pre-approvals, it comes with a firm commitment to lend.\" ribbonText=\"\" headline=\"Ready to get pre-approved?\" link=\"https://www.citi.com/mortgage/surestart-preapproval\" ctaText=\"Learn More\"}\n::\n\n\n\n::disclaimer-dialog{buttonCopy=\"Citi SureStart® Terms & Conditions\" :dialogCopy='\"## Citi SureStart® Terms & Conditions\\n\\nSureStart® Pre-Approval is a registered service mark of Citigroup Inc. Final commitment is subject to verification of information, receipt of a satisfactory sales contract on the home you wish to purchase, appraisal and title report, and meeting our customary closing conditions. There is no charge to receive a SureStart® Pre-Approval. However, standard application and commitment fees will apply for the mortgage loan application.\"'}\n::",{"title":842,"content":843},"What to do after you’re prequalified","Once you’re prequalified for a mortgage, you can begin house hunting within your estimated budget, knowing you’re searching in a realistic range. As you get closer to [making an offer](/home-buying/articles/how-to-make-an-offer/), you can start gathering documents needed for pre-approval and continue refining your financial profile.\n\nThis stage is also a good time to review the loan options discussed during prequalification. Based on your lender’s feedback, you may explore different loan types that align with your goals and financial profile.\n\nAt the same time, you can begin improving any areas that were flagged, such as adjusting savings plans or managing existing debts. Taking these steps early can help strengthen your position and make the transition to pre-approval feel smoother and more confident.",{"title":845,"content":846},"Building confidence through prequalification","Homebuying is full of decisions, and uncertainty can make it harder to enjoy the process. Prequalification helps replace guesswork with clarity. It gives you a clearer sense of what’s possible, what to focus on and how to move forward with intention.\n\nMost importantly, it reminds you that you don’t have to figure everything out at once. Prequalification is simply a starting point, one that helps you take the next step feeling informed, supported and ready.",{"title":848,"hideTitle":27,"content":849},"Mortgage prequalification FAQs","::faq{headline=\"Mortgage prequalification FAQs\" :faqs='[{\"question\":\"What does it mean to be prequalified for a mortgage?\",\"answer\":\"Being prequalified for a mortgage means a lender has reviewed basic financial information and provided an estimate of how much you may be able to borrow. It’s an early planning tool, not a guarantee of approval.\"},{\"question\":\"Does being prequalified for mortgage approval affect my credit score?\",\"answer\":\"Prequalification typically involves a soft credit check, which usually does not affect your credit score. Your lender can explain how credit is reviewed during this stage.\"},{\"question\":\"How long does it take to get prequalified for a mortgage?\",\"answer\":\"Many buyers can get prequalified quickly, sometimes the same day, depending on how readily available their financial information is.\"},{\"question\":\"Is being prequalified for mortgage approval the same as being pre-approved?\",\"answer\":\"No: Prequalification provides an estimate based on basic information, while pre-approval involves verified documents and a more detailed review.\"}]'}\n::","2026-06-03T13:28:00.000Z","**Key insights:** \n\n* Mortgage prequalification gives you an early estimate of how much you may be able to borrow, helping you set a realistic homebuying budget before you start shopping\n* The process is typically quick and low-pressure, requiring only basic financial details\n* Starting with prequalification can help you prepare for pre-approval and focus your home search with greater confidence\n\nBuying a home is exciting. But let’s be honest, it can also feel like a lot. Between home prices, interest rates and loan options, it’s easy to wonder where you even start. One of the easiest ways to calm the chaos is by getting prequalified for a [mortgage](/home-loans/articles/what-is-a-mortgage/).","How to get prequalified for a mortgage: A complete guide",[854,855],"first-time-buyer","loan-process",{"to":770,"introText":857,"body":858,"text":769},"Ready to take the next step?","We’re here to help you get started on your home-buying journey.",{"title":860,"description":861},"How to Get Prequalified for a Mortgage | Mortgage.com","Learn how to get prequalified for a mortgage, what information lenders review and how this early step can help you set a realistic budget before house hunting.","content:articles:home-buying:prequalified-for-mortgage.json","Prequalified For Mortgage","articles/home-buying/prequalified-for-mortgage.json",[866,870],{"label":867,"slug":854,"seo":868},"First Time Buyer",{"description":869},"Learn more about first time buyer with helpful articles, tools, and guides to support your homeownership journey.",{"label":871,"slug":855,"seo":872},"Loan Process",{"description":873},"Explore resources about loan process—including types, requirements, and how to choose the right mortgage option.",{"_path":875,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":817,"l1":765,"linkNav":876,"heroMedia":877,"teaserImage":880,"outro":7,"slug":882,"sections":883,"hideFooterJdPower":6,"date":902,"subheadline":903,"headline":904,"isFeatured":6,"tags":905,"link":906,"seo":910,"hasSectionNavigation":27,"_id":913,"_type":78,"title":914,"_source":80,"_file":915,"_extension":78,"tagsDetails":916},"/articles/home-buying/mortgage-preapproval",{"introText":768,"text":769,"to":770},{"landscape":878,"portrait":879},"/media/what-does-getting-preapproved-for-a-mortgage-mean-mobile.jpg","/media/what-does-getting-preapproved-for-a-mortgage-mean-desktop.jpg",{"src":881},"/media/what-does-getting-preapproved-for-a-mortgage-mean-teaser.jpg","mortgage-preapproval",[884,887,890,893,896,899],{"title":885,"content":886},"What is mortgage pre-approval?","Mortgage pre-approval means a lender reviews your financial information to estimate how much you may be able to borrow for a home. Rather than relying on rough assumptions, the lender looks at verified credit and financials to give both you and the sellers a clearer understanding of your position as a buyer. Typically, a pre-approval involves a hard inquiry on your credit report.\n\n Once that review is done, you’ll usually receive a pre-approval letter, which outlines the loan amount you’re likely to be approved for. You can share the pre-approval letter with sellers to show that your financing has already been reviewed not just assumed.\n\n[Pre-approval is often mixed up with prequalification](/home-buying/articles/prequalified-vs-pre-approved/), but there’s an important difference. Prequalification offers a quick estimate based on information you share, while pre-approval takes a deeper look, using documents to support the numbers. A pre-approval application involves many of the same criteria as a mortgage application—you just might not have a specific property in mind yet. Because of the extra review of your credit and financials, a pre-approval carries more weight when it’s time to make an offer.\n\n[Citi SureStart® Pre-Approval](https://www.citi.com/mortgage/surestart-preapproval) allows buyers to explore their borrowing range early in the process, even before touring homes.\n\n::card{eyebrowIcon=\"\" body=\"Speak to your Citi Specialist about getting preapproved with a Citi SureStart® Pre-Approval. Unlike many preapprovals, it comes with a firm commitment to lend.\" imagePosition=\"top\" ctaType=\"text-arrow\" marginSize=\"small\" :isInlineCard=false headline=\"Ready to get pre-approved?\" backgroundColor=\"\" icon=\"Application\" link=\"https://www.citi.com/mortgage/surestart-preapproval\" ctaText=\"Learn More\"}\n::\n\n::disclaimer-dialog{buttonCopy=\"Citi SureStart® Terms & Conditions\" :dialogCopy='\"### \\nCiti SureStart® Terms & Conditions\\n\\nSureStart® Pre-Approval is a registered service mark of Citigroup Inc. Final commitment is subject to verification of information, receipt of a satisfactory sales contract on the home you wish to purchase, appraisal and title report, and meeting our customary closing conditions. There is no charge to receive a SureStart® Pre-Approval. However, standard application and commitment fees will apply for the mortgage loan application.\"'}\n::",{"title":888,"content":889},"Why pre-approval matters","Mortgage pre-approval helps define a housing budget you can rely on, so you’re not shopping blindly or falling in love with homes that don’t work with your finances.\n\nIt also helps your offer stand out. Sellers want confidence that a deal will move forward without financing issues. A pre-approval letter signals you’re prepared and are serious about your offer, which can matter just as much as price in competitive markets.\n\nPre-approval can bring potential issues to light early, too. Credit concerns, higher debt levels or documentation gaps can be addressed upfront rather than causing delays when timing matters most. And because key financial details have already been reviewed, parts of the [mortgage](/home-loans/articles/what-is-a-mortgage/) underwriting process can move more efficiently after you’re under contract, providing there aren’t significant changes from the pre-approval.",{"title":891,"content":892},"What lenders review during mortgage pre-approval","Lenders look at the full financial picture, not a single number. The goal is to understand how comfortably a mortgage may fit into your budget over time. \n\nHere are some factors lenders consider:\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"\"}]' :rows='[{\"column\":{\"valueOne\":\"Credit score and credit history\",\"valueTwo\":\"How you’ve handled credit over time, such as whether you pay bills on time and manage balances responsibly\"}},{\"column\":{\"valueOne\":\"Debt-to-income ratio (DTI)\",\"valueTwo\":\"How much of your monthly income already goes toward debts, which helps lenders understand how a mortgage would fit into your budget. Estimate yours with our DTI Ratio Calculator.\"}},{\"column\":{\"valueOne\":\"Income consistency\",\"valueTwo\":\"Whether your income is reliable enough to support monthly housing costs over the long term\"}},{\"column\":{\"valueOne\":\"Employment history\",\"valueTwo\":\"Confirms steady work, even if you’ve changed jobs or moved into a new role within the same field\"}},{\"column\":{\"valueOne\":\"Assets and savings\",\"valueTwo\":\"Money in checking, savings or other accounts showing that you have financial cushions beyond your regular paycheck\"}}]'}\n::\n\nTaken together, these details help lenders gauge how a mortgage might work in your life—they’re looking for stability and readiness, not a flawless financial record.",{"title":894,"content":895},"How long does pre-approval take?","Getting pre-approved for a mortgage takes anywhere from a few days to about a week. The exact timing can vary depending on how quickly you submit documents and how complex your financial situation is, since lenders review things like income, existing debts and credit history. \n\n Once you’re pre-approved, that approval is valid for a set period, often around 60 to 90 days. If your home search extends beyond that window, or if your income, debts or credit change, it’s a good idea to update or renew your pre-approval so it still reflects your current financial picture. \n\nHow to improve your odds of pre-approval \n\nIf you want to strengthen your mortgage pre-approval, a few small, proactive steps can make a meaningful difference:\n\n* **Pay down high-interest debt.** Reducing balances can help lower your debt-to-income ratio, which shows lenders you have more room in your monthly budget.\n* **Keep your credit stable.** Taking out new loans and opening or closing credit accounts can change your credit profile while your pre-approval is under review, so it’s best to avoid any major changes until after you’ve purchased your home.\n* **Build up your savings where possible.** Stronger savings can show lenders that you have financial backup beyond your regular income.\n* **Review your credit report for errors.** Catching and correcting mistakes early helps ensure lenders are seeing accurate information.\n* **Keep your employment situation steady.** Avoiding major job changes during this stage can help keep the process moving smoothly.",{"title":897,"content":898},"What happens after mortgage pre-approval?","Once you’re pre-approved, it’s time to start looking for your next home. With pre-approval behind you, you can begin shopping with a lot more confidence and less stress. Instead of wondering whether a price point might work, you’re looking within a budget a lender has already reviewed. Sharing your pre-approval letter with your [real estate agent](/home-buying/articles/what-is-a-real-estate-agent/) also helps them tailor listings to your range and position your offer more strongly when you find the right home.\n\nAs you move closer to making an offer, your lender will outline any remaining documents needed for your official application. When you make an offer and the lender reviews your application, they’ll take a deeper look at both the home and the final details of your loan, confirming that everything aligns with what they saw during pre-approval. Staying responsive and organized during this step can help keep things moving smoothly.\n\nFrom pre-approval through [closing](/tags/closing/), financial consistency matters. Large purchases, new credit accounts or major job changes can affect your approval, even late in the process. Keeping spending, employment and bank activity steady helps reduce delays and keeps your path to closing on track.",{"title":900,"content":901,"hideTitle":27},"Mortgage pre-approval FAQs","::faq{headline=\"Mortgage pre-approval FAQs\" :faqs='[{\"question\":\"How is mortgage pre-approval different from prequalification?\",\"answer\":\"Prequalification is a quick estimate based on information you provide, while pre-approval involves a lender reviewing documentation to verify your credit and financial details. Because of that added review, pre-approval carries more weight when making an offer. Citi’s SureStart® Pre-Approval comes with a firm commitment to lend.\"},{\"question\":\"Does getting pre-approved guarantee my mortgage will be approved?\",\"answer\":\"Pre-approval does not guarantee final approval. It’s an important early step, but you’ll still need to submit a formal application and undergo full underwriting after you’re under contract. The lender will review the property and any updated financial information before deciding whether to approve your mortgage. \"},{\"question\":\"Will mortgage pre-approval affect my credit score?\",\"answer\":\"Pre-approval often involves a credit check, which may cause a small, temporary change in your credit score. Many lenders treat multiple mortgage inquiries within a short window as a single event.\"},{\"question\":\"How often should I update my mortgage pre-approval?\",\"answer\":\"If your pre-approval expires or your income, debt or credit changes, it’s a good idea to update it. Keeping your pre-approval current helps ensure it accurately reflects your financial situation when you’re ready to make an offer.\"}]'}\n::","2026-04-23T09:13:00.000Z","**Key insights:** \n\n* Mortgage pre-approval is when a mortgage lender looks at your credit and finances, like your credit score and income, to estimate the home loan amount you might qualify for\n* While it’s not a guarantee of mortgage approval, getting pre-approved is a strong move in the home-buying process\n* Pre-approval letters are often valid for 60 to 90 days \n\nBuying a home can feel like a bit of a race. In many markets, lots of home-buying hopefuls are vying for the same listings, and sellers may be weighing multiple offers at once. That pressure can make the early stages of home buying feel overwhelming, especially if you’re still not sure what you can afford.\n\nThat’s where a [mortgage pre-approval](/home-loans/articles/how-to-get-pre-approved/) can make a real difference. It gives you a clearer budget before you start shopping, makes your offer stronger in the eyes of sellers and can help the path to [closing](/home-buying/articles/closing-on-a-house/) move more smoothly. Instead of guessing or hoping things work out later, you’re starting with real information that a lender has already reviewed.\n\nIt may sound like a big step, but a pre-approval is not as complicated as many buyers expect. Let’s look more closely at what’s involved in the mortgage pre-approval process.","What does getting pre-approved for a mortgage mean?",[854,765,855],{"introText":907,"body":908,"text":909,"to":770},"Ready to move forward with confidence?","Whether you’re just starting to explore your options or getting closer to making an offer, having a clear picture of your mortgage pre-approval can help you feel more prepared for what’s next.","Connect With A Citi Specialist",{"title":911,"description":912},"Mortgage Preapproval | Mortgage.com","Learn what mortgage preapproval means and why it can strengthen your offer and help you buy with confidence. Review the mortgage preapproval process.","content:articles:home-buying:mortgage-preapproval.json","Mortgage Preapproval","articles/home-buying/mortgage-preapproval.json",[866,870,808],{"_path":918,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":919,"l1":765,"linkNav":920,"heroMedia":921,"teaserImage":924,"slug":926,"sections":927,"date":943,"subheadline":944,"headline":945,"isFeatured":6,"tags":946,"link":948,"seo":951,"hasSectionNavigation":27,"_id":954,"_type":78,"title":955,"_source":80,"_file":956,"_extension":78,"tagsDetails":957},"/articles/home-buying/mortgage-insurance",7,{"introText":768,"text":769,"to":770},{"landscape":922,"portrait":923},"/media/article-mortgage-insurance-mobile-768x512.jpg","/media/article-mortgage-insurance-desktop-520x638.jpg",{"src":925},"/media/article-mortgage-insurance-teaser-500x500.jpg","mortgage-insurance",[928,931,934,937,940],{"title":929,"content":930},"Understanding private mortgage insurance","::callout{title=\"What is mortgage insurance?  \" body=\"Mortgage insurance is an added insurance that protects lenders from financial loss if a borrower is unable to make their payments. There are a few types of mortgage insurance, each with its own requirements.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::\n\n### Private mortgage insurance (PMI) explained\n\nPrivate mortgage insurance (PMI), also known simply as mortgage insurance, is a monthly premium that lenders charge when you put less than 20% down on a conventional home loan. You may also be required to hold mortgage insurance when [refinancing ](/refinancing/articles/rate-and-term/)if you have less than 20% equity in the home.\n\nDon’t confuse mortgage insurance with [homeowners insurance ](/home-buying/articles/what-is-homeowners-insurance/), which protects you if your home or belongings get damaged.\n\n### Mortgage insurance premium (MIP) for FHA loans\n\nAn [FHA loan ](/home-loans/fha-loan/)can offer more lenient credit requirements than a conventional loan and a down payment as low as 3.5%. FHA loans come with a mortgage insurance premium (MIP) instead of PMI. Both MIP and PMI protect the lender in the event you default on your loan, but they operate differently. A MIP has two parts: a one-time upfront premium as part of the closing cost, plus an annual payment.\n\n### Mortgage protection insurance (MPI): Optional coverage\n\nMortgage protection insurance (MPI) is an optional policy that will pay off your mortgage when you die, so your loved ones won’t have to carry the burden of an unpaid home loan. MPI may not be necessary if you have a life insurance policy.",{"title":932,"content":933},"Mortgage insurance costs by loan type","### PMI for conventional mortgages\n\nSo, how much is mortgage insurance? It depends. PMI isn’t a flat fee—it’s usually 0.2% to 2% of the original loan amount annually. Most of your mortgage insurance fees are part of your monthly mortgage payment.\n\nYour financial stats influence how much a lender decides to charge you for PMI: The riskier your profile, the higher percentage you’ll likely have to pay. Let’s walk through some factors lenders will consider.\n\n* **Down payment:** Even if you can’t afford 20%, a higher [down payment](/home-buying/articles/how-much-down-payment-for-a-house/) could shave down your PMI costs.\n* **Credit score:** Stronger credit shows you’re good at managing debts, which could get you a lower PMI rate.\n* **Mortgage amount:** Larger loans are saddled with higher PMI costs since the lender is taking on more risk.\n* **Mortgage type:** [Adjustable-rate loans](/home-loans/adjustable-rate/) are riskier for lenders than [fixed-rate loans](/home-loans/fixed-rate/), so they generally come with higher PMI costs.\n\n### MIP for FHA loans\n\nIf you have an FHA loan, MIP comes in two forms: the upfront premium and the annual payment. The upfront premium is a one-time payment of 1.75% of your total loan. Usually this is paid upfront, but it can also be tacked onto your loan balance.\n\nYour annual MIP will generally be 0.45% to 1.05% of your loan balance, divided up over your monthly payments. If your down payment is less than 10%, you’ll be stuck with the annual premium for the entire loan term. You usually can’t cancel MIP unless you refinance to a different type of loan.\n\n### VA funding fees\n\nIf you’re a veteran, an active service member, or a surviving spouse, a VA loan might be a no-down-payment option. Instead of PMI, you’ll owe a one-time funding fee, which is a small percentage of the total loan. Even though a down payment isn’t required, you may want to bring some cash to the table: The higher your down payment, the lower your funding fee will be.",{"title":935,"content":936},"Strategies to avoid private mortgage insurance","### Making a 20% down payment\n\nPutting down 20% means you don’t need to pay for mortgage insurance. Saving up 20% of a home’s purchase price is no easy feat, so it’s important to weigh the pros and cons: Do you want to get into a home now and start building equity, or would you rather keep saving to avoid the cost of mortgage insurance? If home prices are surging, mortgage insurance might be cheaper than waiting to buy.\n\n### Exploring government-backed loans\n\nTake a closer look at conventional loan alternatives like [FHA ](/home-loans/fha-loan/)and [VA](/home-loans/va-loan/) loans, which can help make homeownership more affordable. See if you qualify for one of these [government-backed loans](/home-buying/articles/government-backed-home-loans/) so you can avoid paying PMI.\n\nCiti offers conventional and government-backed [home loans](/home-loans/) to help you find a mortgage that fits your down payment, credit profile and long-term goals.\n\n### Considering lender-paid mortgage insurance (LPMI)\n\nYou can build the cost of your mortgage insurance into your mortgage rate with lender-paid mortgage insurance. You won’t be charged a monthly PMI payment, but you will pay a higher rate for the life of your loan. Your credit score and down payment are key components in determining the increase in your rate, so you’d need to do the math to determine the more affordable option: paying mortgage insurance or paying the higher rate.",{"title":938,"content":939},"How to remove mortgage insurance","###  Automatic cancellation at 22% equity\n\nYour lender is legally required to cancel PMI once you reach 22% in home equity, or one month after your loan’s midpoint (15 years into a 30-year loan, for example) as long as you are current on your payments. This doesn’t require action on your part, but there are more proactive ways to save.  \n\n###  Requesting cancellation at 20% equity\n\nMark your calendar for the day you hit 20% equity in your home. That’s when you can write to your lender or loan servicer and request that mortgage insurance be taken off your bill. You’ll need to be current on your payments and have a healthy payment history to qualify for PMI cancellation.\n\n### Refinancing to eliminate MIP\n\nIf you have an FHA loan and want to avoid mortgage insurance premiums, you may want to [refinance](/refinancing/) to a different[ loan type](/home-loans/articles/types-of-loans/). You can test the refinance waters and run through different rate and term scenarios using our [Refinance Calculator](/calculators/refinance/). Keep in mind that when you refinance, you’ll need to pay closing costs, which can be between 2–6% of the loan amount.\n\n###  Cancelling PMI through home appreciation\n\nIf your home has appreciated in value due to market conditions or big renovations, you might have more home equity than you think. You can request a new appraisal of your home from your lender. They’ll compare your remaining loan balance to the home’s appraised value to determine how much equity you have. Depending on how long you’ve been in the home, you may need to reach 25% estimated equity to cancel PMI.",{"title":941,"content":942},"Comparing mortgage insurance options ","### PMI vs. MIP: Key differences\n\n::content-table{:useBullets=false :tableData='[{\"row\":[{\"column\":\"Private mortgage insurance (PMI)\"},{\"column\":\"Mortgage insurance premium (MIP)\"}]},{\"row\":[{\"column\":\"For conventional loans\"},{\"column\":\"For FHA loans only \"}]},{\"row\":[{\"column\":\"Only required with down payment of less than 20%\"},{\"column\":\"Required for all FHA loans regardless of down payment size\"}]},{\"row\":[{\"column\":\"Monthly payments\"},{\"column\":\"Upfront premium and annual payment\"}]},{\"row\":[{\"column\":\"Can be cancelled at request once 20% equity is reached\"},{\"column\":\"Can’t be cancelled if you put less than 10% down\"}]},{\"row\":[{\"column\":\"Cost varies based on multiple factors\"},{\"column\":\"Cost is more standardized and less influenced by borrower’s financials\"}]},{\"row\":[{\"column\":\"Lower initial loan-related costs compared to MIP’s upfront premium\"},{\"column\":\"Qualifying is easier for borrowers with lower credit scores and smaller down payments\"}]}]'}\n::\n\n### Pros and cons of PMI and MIP\n\n **Private mortgage insurance for conventional loans** \n\n::content-table{:useBullets=false :tableData='[{\"row\":[{\"column\":\"Pros of PMI\"},{\"column\":\"Cons of PMI\"}]},{\"row\":[{\"column\":\"Allows for down payment of less than 20%\"},{\"column\":\"Increases monthly mortgage payment\"}]},{\"row\":[{\"column\":\"Helps first-timer buyers and those with limited savings qualify for a mortgage\"},{\"column\":\"Protects only the lender, not the buyer\"}]},{\"row\":[{\"column\":\"Allows buyers to purchase now and build equity instead of waiting to save\"},{\"column\":\"Adds to long-term loan costs without building equity directly\"}]},{\"row\":[{\"column\":\"Cancelled automatically once owner reaches 22% equity \"},{\"column\":\"Depending on lender, requesting PMI removal can be cumbersome \"}]}]'}\n::\n\n **Mortgage insurance premium for FHA loans** \n\n::content-table{:useBullets=false :tableData='[{\"row\":[{\"column\":\"Pros of MIP\"},{\"column\":\"Cons of MIP\"}]},{\"row\":[{\"column\":\"Allows for down payment as little as 3.5% and lower credit scores\"},{\"column\":\"Mandatory for FHA loans regardless of down payment size \"}]},{\"row\":[{\"column\":\"Helps first-time borrowers and those with lower income \"},{\"column\":\"Required for entire loan term if down payment is less than 10%\"}]},{\"row\":[{\"column\":\"May be refinanced to a conventional loan to remove MIP \"},{\"column\":\"Upfront premium plus annual fee add to total cost of loan\"}]}]'}\n::","2026-04-23T09:08:00.000Z","**Key insights:**\n\n* Mortgage insurance protects the lender—not the borrower—and is typically required when you put less than 20% down, with different structures depending on loan type\n* The cost and flexibility of mortgage insurance vary widely by loan program\n* Borrowers have multiple strategies to reduce or eliminate mortgage insurance over time, including building equity, refinancing and leveraging home appreciation\n\nWhen you have a [conventional loan](/home-loans/conventional-loan/) with a smaller [down payment](/home-buying/articles/how-much-down-payment-for-a-house/), lenders often require you to hold private mortgage insurance (PMI) to help them recover costs if you can’t make the payments. No one wants a bigger mortgage bill, so here’s the rundown on mortgage insurance and how you can manage your costs.","What is mortgage insurance and why do you need it?",[947,854,765],"insurance",{"introText":949,"text":769,"to":770,"body":950},"Need help finding the right loan for you?","Citi can help you narrow down your options and determine which is more affordable in the long run.",{"title":952,"description":953},"What is Mortgage Insurance and Why Do You Need It | Mortgage.com","Wondering if you need mortgage insurance? Learn the different types, when it's required and how to navigate making monthly payments.","content:articles:home-buying:mortgage-insurance.json","Mortgage Insurance","articles/home-buying/mortgage-insurance.json",[866,808,958],{"label":959,"slug":947,"seo":960},"Insurance",{"description":961},"Learn more about insurance with helpful articles, tools, and guides to support your homeownership journey.",{"_path":963,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":964,"l1":765,"linkNav":965,"heroMedia":966,"teaserImage":969,"slug":971,"sections":972,"hideFooterJdPower":6,"date":1000,"subheadline":1001,"headline":1002,"dateModified":1003,"isFeatured":6,"tags":1004,"link":1006,"seo":1009,"hasSectionNavigation":27,"_id":1012,"_type":78,"title":1013,"_source":80,"_file":1014,"_extension":78,"tagsDetails":1015},"/articles/home-buying/how-to-buy-a-foreclosed-home",8,{"introText":768,"text":769,"to":770},{"landscape":967,"portrait":968},"/media/foreclosed-homes-what-buyers-need-to-know-mobile.jpg","/media/foreclosed-homes-what-buyers-need-to-know-desktop.jpg",{"src":970},"/media/foreclosed-homes-what-buyers-need-to-know-teaser.jpg","how-to-buy-a-foreclosed-home",[973,976,979,982,985,988,991,994,997],{"title":974,"content":975},"What does “foreclosed home” mean?","A foreclosed home is a property that a homeowner has lost to foreclosure, meaning the original owner could not keep up with mortgage payments, and the lender took back the property to recover what was owed.[](https://www.chase.com/personal/mortgage/education/buying-a-home/buying-home-in-foreclosure?utm_source=chatgpt.com)\n\nHere’s how foreclosure unfolds:\n\n* **Pre-foreclosure:** This is the initial stage after a homeowner misses payments and the lender issues a notice of default. In some markets, properties in this stage can be purchased directly from the homeowner (sometimes called a short sale) before the lender officially takes possession.  \n* **Auction:** If the loan remains unpaid, the property may be sold at a public foreclosure auction. Buyers bid, often in cash and “as-is” (more on this shortly), and the highest bidder takes ownership, usually with limited [inspection](/home-buying/articles/what-is-a-home-inspection/) rights and no guarantees.\n* **Bank-owned (REO) properties:** If a home doesn’t sell at auction, the lender, typically a bank, takes title and lists it for sale through real estate agents. These REO homes are what most everyday buyers encounter when searching foreclosure listings.[](https://www.rocketmortgage.com/learn/buying-a-foreclosed-home-pros-cons-and-how-to-purchase?utm_source=chatgpt.com)\n\nMany buyers end up purchasing at the REO stage through a real estate agent, when there’s more opportunity to inspect the home and secure traditional financing.",{"title":977,"content":978},"The upsides of buying a foreclosed home","Buying a foreclosed property can be a smart move, especially if you’re prepared and patient. Here are some key advantages:  \n\n* **Potentially lower purchase price:** Foreclosed homes often list below the market value of comparable homes because lenders are motivated to sell quickly  \n* **Less competition in certain markets:** While investors often chase deep discounts at auctions, some REO listings see less competition from traditional buyers  \n* **Opportunity to build equity:** With some sweat equity, you can increase a home’s value significantly, a strong draw for investors and handy homeowners alike",{"title":980,"content":981},"The challenges of buying a foreclosed home","Before falling in love based solely on the price tag, it’s important to better understand what you’re getting into. Here are some of the difficulties that can arise in the process of buying foreclosed homes:\n\n* **Homes are typically sold “as-is”:** Unlike traditional sales, lenders generally don’t negotiate repairs. If there are plumbing leaks, roofing issues, or structural damage, that’s on the buyer to remediate.  \n* **Condition can be unknown or worse than expected:** Vacant homes are often neglected. Utilities may be shut off, and damage from freeze-thaw cycles, pests or vandalism can go unaddressed.  \n* **Title complications and liens:** Foreclosed properties can carry outstanding taxes, liens or unresolved claims that involve extra legal and financial work.",{"title":983,"content":984},"Special considerations for auction purchases","Buying at a foreclosure auction can be fast and potentially very cheap, but it’s not for everyone. Here’s what to keep in mind as you think about whether to buy a foreclosed property at auction:\n\n* **Cash is most often required:** Many auctions demand certified funds or cash at closing, making traditional mortgage financing difficult (though not usually impossible, as we'll see shortly) \n* **Limited inspections:** You may not have the chance to do a [walkthrough](/home-buying/articles/final-walkthrough-checklist/) of the house or get a certified inspection before bidding\n* **Bidding wars and risk of overpaying:** Competitive auctions can push prices above market value, so be aware that an unexpectedly low price can rapidly become a much higher one\n\nThe bottom line is that auctions can offer steep discounts if you’re experienced, prepared and willing to accept risk. Otherwise, REO listings may be a more manageable path.",{"title":986,"content":987},"Financing a foreclosed home","While cash is a common way to buy a foreclosed home, that doesn’t mean you can’t finance it. Some mortgage options work better in certain circumstances than in others:\n\n* **Conventional loans:** These loans are great for homes in move-in condition that meet property standards  \n* **FHA 203(k) renovation loans:** These loans roll repair costs into your [mortgage](/home-buying/articles/apply-for-a-mortgage/), making them ideal for homes needing renovation\n* **VA loans:** Eligible buyers can use [VA mortgages](/home-loans/va-loan/), though the home must meet basic livability standards\n\nWorking early with a lender like Citi, which offers a range of [home loans](/home-loans/) to suit different financial situations, can help you determine the right strategy and be ready to act quickly when you find your dream property. Having [pre-approval](/home-loans/articles/how-to-get-pre-approved/) in hand also signals to lenders and sellers alike that you're committed to seeing the transaction through, giving you a competitive edge.\n\n::card{eyebrowIcon=\"\" body=\"The Citi SureStart® Pre-Approval comes with a firm commitment to lend.\" imagePosition=\"left\" ctaType=\"text-arrow\" marginSize=\"small\" :isInlineCard=false headline=\"Ready to get pre-approved?\" backgroundColor=\"\" icon=\"Penpaper\" link=\"https://www.citi.com/mortgage/surestart-preapproval?\" ctaText=\"Learn more\"}\n::\n\n\n\n::disclaimer-dialog{buttonCopy=\"SureStart® Terms & Conditions\" :dialogCopy='\"## Citi SureStart® Terms & Conditions\\n\\nSureStart® Pre-Approval is a registered service mark of Citigroup Inc. Final commitment is subject to verification of information, receipt of a satisfactory sales contract on the home you wish to purchase, appraisal and title report, and meeting our customary closing conditions. There is no charge to receive a SureStart® Pre-Approval. However, standard application and commitment fees will apply for the mortgage loan application.\"'}\n::",{"title":989,"content":990},"Must-do inspections and evaluations when buying a foreclosed home","Foreclosed homes often sit vacant for weeks or months before they’re put on the market. That means they may look fine on the surface but hide costly issues beneath. Getting the right inspections and evaluations before you close can save you thousands of dollars and help you make a [final decision](/home-buying/articles/how-to-make-an-offer/) with confidence.\n\n### Full home inspection  \n\nA professional home inspection is a good first step. This is a broad evaluation of the home’s overall condition, typically covering structural, mechanical and safety-related elements. An inspector will walk the property from top to bottom and flag issues like roof defects, foundation cracks or worn-out systems that could be expensive to fix.   \n\n A solid inspection report helps you:\n\n* Understand the true condition of the home\n* Budget for repairs realistically\n* Identify potential deal-breakers before you’re locked in\n\n### Systems checks (HVAC, plumbing, electrical)  \n\nForeclosed homes often go without regular maintenance, which means the major systems may be worn, outdated or non-functional. Be sure to examine: \n\n*  **HVAC:** Heating and cooling systems may be neglected or damaged, especially if the power was shut off during vacancy  \n*  **Plumbing:** Frozen, leaking or corroded pipes can lead to water damage and mold growth, and septic tanks (if present) need evaluation too\n* **Electrical:** Outdated wiring, overloaded panels or DIY fixes can be serious fire hazards that should be addressed in advance. \n\nYou may need specialists for deeper checks, but even a competent general inspector can identify red flags and recommend targeted follow-ups.  \n\n### Roof and foundation evaluation  \n\nRoof and foundation issues are often the costliest to fix. Because foreclosed homes may sit empty without climate control or routine upkeep, roof leaks and shifting foundations are more common than you might think.   \n\nDuring this inspection:\n\n* Look for leaks, missing shingles, and sagging areas\n* Check for foundation cracks, uneven floors, and wall separation\n* Ask about potential water intrusion points  \n\n Getting these evaluated early helps you avoid surprises that might derail your renovation budget.  \n\n### Pest and termite inspections  \n\nFrom termites to rodents, vacant properties are magnets for pests, particularly if utilities were turned off a while ago. A pest or termite inspection checks for infestations that could compromise wood structures or lead to ongoing repair costs.   \n\nEven if a general inspection turns up nothing obvious, consider a dedicated pest check if:  \n\n* The property is in a high-risk area\n* Exterior wood is in direct contact with soil\n* You see signs like droppings, nests or wood damage  \n\n### Water damage and safety reviews  \n\nWater damage is one of the biggest hidden costs associated with foreclosed homes. Roof or plumbing leaks can drip away for months or years without drawing notice, leading to rot, mold or structural issues.   \n\nSpecialized approaches to consider:  \n\n* Mold inspection if there’s a musty smell or visible staining\n* Moisture meters or infrared scans for hidden leaks\n* Safety checks for radon, lead paint (in older homes) and carbon monoxide risks  \n\nThese add a bit to the inspection cost but can protect your investment and health in the long run.",{"title":992,"content":993},"Why these inspections matter","Foreclosure properties are typically sold “as-is,” meaning lenders aren’t obligated to make repairs or disclose past problems. Thorough evaluations help you assemble a realistic picture of what owning the home will actually cost, not just what it says on a real estate site.\n\nBy uncovering hidden issues early, you’ll be better positioned to factor [repair costs](/home-buying/articles/how-to-negotiate-repairs-after-inspection/) into your offer and decide whether the home is a worthwhile pursuit in the first place.",{"title":995,"content":996},"When buying a foreclosed home makes sense","Foreclosures aren’t for everyone, but they can be a great strategy if:  \n\n* You’re comfortable with renovation and repairs\n* You want the potential for instant equity\n* You’re an investor planning a flip or rental property\n* You’re budget-conscious and prepared to do extra homework\n\nIf one of these scenarios resonates with you, a foreclosed home might not just be a good deal, it could also be the right home. Foreclosures can unlock value and opportunity, but only when approached with preparation and clear expectations. With the right knowledge, support from [real estate](/home-buying/articles/10-questions-to-ask-when-buying-a-house/) and lending professionals, and a thoughtful strategy, you can confidently evaluate whether a foreclosed property fits your homebuying goals.",{"title":998,"content":999,"hideTitle":27},"Foreclosed home FAQs","::faq{headline=\"Foreclosed home FAQs\" :faqs='[{\"question\":\"Is it a good idea to buy a foreclosed home?\",\"answer\":\"Whether buying a foreclosed home is a good idea depends on your needs, preferences and circumstances. If you’re comfortable taking on a renovation, want to flip the property or willing to exchange some risk and effort for a low price, a foreclosed home might be a good fit for you.\"},{\"question\":\"How long does it take to buy a foreclosed home?\",\"answer\":\"The timeline depends on factors like the type of property, how you’re buying it and whether you waive inspections. If you’re financing the home, it could take around 45-60 days. The lender may be motivated to move quickly to recoup their costs, but issues like liens or unpaid taxes may draw the process out.\"},{\"question\":\"Is it harder to get a loan on a foreclosed home?\",\"answer\":\"It can be harder to get a loan on a foreclosed home because for certain mortgages, the home needs to meet livability standards. In many cases, cash purchases are preferred. That said, you may still be able to get a loan to purchase a foreclosure.\"}]'}\n::","2026-04-09T12:31:00.000Z","**Key insights:**\n\n* Foreclosed homes can offer potential savings and equity opportunities, but they come with added risks and complexities compared to traditional home purchases  \n* Most buyers encounter foreclosures as bank-owned (Real Estate Owned/REO) properties, which allow for inspections and financing but are typically sold as-is\n* Careful inspection, realistic budgeting and early financing preparation can help you decide whether a foreclosed home fits your goals and risk tolerance\n\nThere’s a lot about buying a foreclosed home that might seem appealing, like low prices, a blank slate to customize, or even built-in equity in some cases. But before you draw up renovation plans, it’s a good idea to know what you’re getting into with a foreclosure. You’ll likely face some complexities that you wouldn’t with a traditional home purchase. Let’s walk you through what foreclosure means, how the buying process works, the pros and cons of buying these homes and smart strategies to help you decide if one might be right for you.","How to buy a foreclosed home: What you need to know","2026-05-06T18:00:00.000Z",[765,1005],"real-estate-process",{"introText":1007,"to":770,"body":1008,"text":769},"Considering buying a foreclosed home?","Citi may be able to help guide you through the process.",{"title":1010,"description":1011},"How to Buy a Foreclosed Home | Mortgage.com","Learn the ins and outs of buying a foreclosed home. Explore the benefits, risks, financing options and inspections to consider if it’s right for you.","content:articles:home-buying:how-to-buy-a-foreclosed-home.json","How To Buy A Foreclosed Home","articles/home-buying/how-to-buy-a-foreclosed-home.json",[1016,808],{"label":1017,"slug":1005,"seo":1018},"Real Estate Process",{"description":1019},"Learn more about real estate process with helpful articles, tools, and guides to support your homeownership journey.",{"_path":1021,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":919,"l1":765,"linkNav":1022,"heroMedia":1024,"relatedArticlesConfig":1027,"teaserImage":1030,"slug":1032,"sections":1033,"date":1088,"subheadline":1089,"headline":1090,"isFeatured":6,"tags":1091,"link":1092,"seo":1095,"hasSectionNavigation":27,"_id":1098,"_type":78,"title":1099,"_source":80,"_file":1100,"_extension":78,"tagsDetails":1101},"/articles/home-buying/home-buying-1",{"introText":1023,"to":770,"text":769},"Ready for the Next Step?",{"landscape":1025,"portrait":1026},"/media/article-10-questions-to-ask-mobile-768x512.jpg","/media/article-10-questions-to-ask-desktop-520x638.jpg",{"headline":1028,"body":1029},"Peek behind the curtains of the home-buying process","Still have burning questions about interest rates or closing costs? We've got you covered with a host of in-depth articles on every step of the home-buying journey.",{"src":1031},"/media/article-10-questions-to-ask-teaser-500x500.jpg","how-to-buy-a-home",[1034,1037,1041,1044,1048,1052,1056,1058,1062,1066,1071,1075,1079,1083],{"title":1035,"content":1036},"Prepare to buy a home","Wondering if it’s time to settle down? Before you dive into house hunting, make sure you know the facts. Learn how to lay the right foundation for your search and what to know before you hit the open houses.\n\n::inline-card-grid{:cards='[{\"eyebrowIcon\":\"\",\"body\":\"We'll show you the ropes, covering grants and loans you might qualify for as a first-time home buyer.\\n\\n\",\"imagePosition\":\"top\",\"ctaType\":\"text-arrow\",\"marginSize\":\"small\",\"isInlineCard\":true,\"headline\":\"Are you a first-time home buyer?\",\"backgroundColor\":\"blue-grey\",\"icon\":\"Penpaper\",\"link\":\"/home-buying/articles/first-time-home-buyer/\",\"ctaText\":\"Learn About First-Time Home Buyer Programs\"},{\"eyebrowIcon\":\"\",\"body\":\"Whether you're thinking about an investment property or a vacation home, we'll cover what you need to know.\",\"imagePosition\":\"top\",\"ctaType\":\"text-arrow\",\"marginSize\":\"small\",\"isInlineCard\":true,\"headline\":\"Ready to buy your next home?\",\"backgroundColor\":\"blue-grey\",\"icon\":\"Homebuyer\",\"link\":\"/home-buying/articles/second-home/\",\"ctaText\":\"How to Buy a Second Home\"}]'}\n::",{"title":1038,"eyebrowBullet":27,"content":1039,"headlineUrl":1040},"Know what you can afford","Budgeting isn’t exactly thrilling, but it's an essential step to know where, when and what you can buy. Our handy calculator will help you estimate your ideal monthly mortgage payment. Just plug in your income and regular debt payments to get an idea of what you can comfortably afford. This will help you realistically target your search so you can find your dream home faster.","/calculators/affordability/",{"content":1042,"title":1043,"hideTitle":27},"\n\n![](/media/couple-land.jpg)","Image",{"title":1045,"eyebrow":1046,"eyebrowBullet":27,"content":1047},"Get your finances ready","Step 3","Now that your budget is locked and loaded, it’s time to [take stock of all the payments](https://www.mortgage.com/home-buying/articles/how-much-money-do-you-need-to-buy-a-house/) you might expect to make. Let’s break it down together, from down payments and mortgage insurance to closing costs and property taxes, along with some fees you might not expect.",{"title":1049,"eyebrow":1050,"eyebrowBullet":27,"content":1051},"Find the right mortgage for you","Step 4","There are various types of mortgages, each with distinct requirements and guidelines. There are even options available specifically for veterans, low-income families and more. From conventional to jumbo loans, we’ll [take a tour of the different types](/home-loans/) to help you uncover the best option for you.",{"title":1053,"eyebrowBullet":27,"eyebrow":1054,"content":1055,"headlineUrl":7},"Get preapproved for a loan","Step 5","Get a foot in the door of your dream home by [getting preapproved for a mortgage](/home-buying/articles/apply-for-a-mortgage/). This is a great way to expedite the loan review process and close on a home faster. Lenders may look at your credit report, income and assets to determine your eligibility. Don’t worry—it’s simpler than you might think.",{"title":1043,"hideTitle":27,"content":1057},"\n\n![](/media/article-img-1200-.jpg)",{"title":1059,"eyebrowBullet":27,"eyebrow":1060,"content":1061},"Go house hunting","Step 6","Now it’s time for the fun part! Explore the neighborhoods you’ve had your eye on and start attending some open houses. You can [team up with a real estate agent](/home-buying/articles/do-you-need-a-realtor-to-buy-a-house/) to guide you and negotiate on your behalf or go it solo. Whether you’re looking for a single-family home or a condo, seeing the home before you make an offer can help give you peace of mind.",{"title":1063,"eyebrow":1064,"eyebrowBullet":27,"content":1065},"Make an offer","Step 7","So, you’ve fallen in love with your perfect home, and you're ready to [make an offer](/home-buying/articles/how-to-make-an-offer/). How do you do it? We’ll give you the inside scoop on closing the deal, from earnest money deposits to purchase price negotiations and appraisal contingencies.",{"title":1067,"content":1068,"eyebrowBullet":27,"eyebrow":1069,"headlineUrl":1070},"Schedule a home inspection","Before rushing to make things official, you need to know exactly what you’re signing up for. A home inspector will look for problems that might not be apparent at first glance. There could be maintenance issues or liabilities lurking beneath those freshly painted walls. With a proper inspection, you can help to ensure your dream home has no unpleasant surprises.","Step 8","/home-buying/articles/what-is-a-home-inspection/",{"title":1072,"eyebrow":1073,"eyebrowBullet":27,"content":1074},"Have your home appraised","Step 9","An [appraisal](/home-buying/articles/home-appraisal/) and inspection may seem similar, but they’re both essential parts of the process. An appraiser will determine the value of a home, giving you an unbiased assessment of its worth. This is not only a great way to gut check the purchase price, but it’s typically required by mortgage lenders to ensure the loan amount matches the home’s worth.",{"title":1076,"eyebrow":1077,"eyebrowBullet":27,"content":1078},"Get homeowners insurance","Step 10","Owning a home is a valuable investment that requires protection. Making repairs due to environmental factors or replacing stolen goods can be pricey. In fact, [homeowners insurance](/home-buying/articles/what-is-homeowners-insurance/) is often mandatory to get a mortgage. Not all insurance is the same, however, and it’s important to know exactly what is and isn’t covered under any policy.",{"title":1080,"eyebrow":1081,"eyebrowBullet":27,"content":1082},"Negotiate repairs with seller","Step 11","After the inspection, take stock of what needs to be repaired before you take ownership of the home. Some sellers may be more willing than others to spend time and money on certain repairs. Before you [navigate negotiations](/home-buying/articles/how-to-negotiate-repairs-after-inspection/), take time to learn about common repair requests, how to determine what a reasonable request is and smart strategies for getting a great deal.",{"title":1084,"eyebrowBullet":27,"eyebrow":1085,"content":1086,"headlineUrl":1087},"Close on your home","Step 12","Get your ribbon-cutting scissors ready. A smooth and successful closing can be the most exciting part of the process. Once you’ve conducted the final walk-through, understood the closing disclosure and obtained the keys, you’ll be ready for the next chapter in your new home.","/home-buying/articles/closing-on-a-house/","2026-04-03T09:12:00.000Z","Key insights:\n\n* The home-buying process involves 12 key steps, from budgeting, mortgage preapproval and house hunting to inspections, appraisals and closing on your new home\n* Understanding your finances early-like your budget, credit score and loan options-can help you determine what you can afford and speed up approval\n* Working with professionals such as real estate agents, appraisers and inspectors can help ensure you're making informed decisions and protect your investment\n\nReady to buy a home? We’re here to help. We’ve built the ultimate 12-step guide to help you learn how to apply for a mortgage, inspect a potential property and everything else to consider when buying a house. Whether you’re just browsing listings or getting ready to close, you’ll have the tools and understanding you need to navigate the home-buying process stress-free.","How to buy a home",[765],{"introText":1093,"body":1094,"text":769,"to":770},"Need help applying for a mortgage?","We'll guide you through the process every step of the way.",{"title":1096,"description":1097},"How to buy a home | Mortgage.com","Ready to buy a home? Learn the steps of the home-buying process, how to apply for a mortgage and other things to consider when buying a house.","content:articles:home-buying:home-buying-1.json","Home Buying 1","articles/home-buying/home-buying-1.json",[808],{"_path":1103,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":817,"l1":765,"linkNav":1104,"heroMedia":1106,"teaserImage":1109,"slug":1111,"sections":1112,"date":1131,"subheadline":1132,"headline":1133,"dateModified":1134,"isFeatured":6,"tags":1135,"link":1138,"seo":1141,"hasSectionNavigation":27,"_id":1144,"_type":78,"title":1145,"_source":80,"_file":1146,"_extension":78,"tagsDetails":1147},"/articles/home-buying/pay-off-debt-or-save-for-a-house",{"introText":1105,"text":769,"to":770},"Ready for the next step? ",{"landscape":1107,"portrait":1108},"/media/should-i-pay-off-debt-or-should-i-save-for-a-house-mobile-768x512.jpg","/media/should-i-pay-off-debt-or-should-i-save-for-a-house-desktop-520x638.jpg",{"src":1110},"/media/should-i-pay-off-debt-or-should-i-save-for-a-house-teaser-500x500.jpg","pay-off-debt-or-save-for-a-house",[1113,1116,1119,1122,1125,1128],{"title":1114,"content":1115},"Why this question matters for homebuyers","Why does it matter if you choose to pay down debt or invest in your homeownership goals? Your debt, credit score and down payment savings are all key to getting your mortgage approved with manageable terms.  \n\nOn the one hand, debt affects both your [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/) and [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/)—financial indicators that lenders look at to see how well you handle repayments. If your DTI ratio is too high or your credit score is too low, you might face higher interest rates or struggle to get approved.\n\nOn the other hand, saving up for a bigger down payment can help you borrow less and maybe even skip [private mortgage insurance (PMI)](/home-buying/articles/pmi-home-loan/), saving you money each month. Striking the right balance between paying off debt vs. saving can open up more [mortgage loan options](/home-loans/) and improve your chances of earning a better interest rate. But which goal should you tackle first?",{"title":1117,"content":1118},"When paying off debt comes first","Focusing on debt first can make sense in many situations.  \n\n### **Reducing high-interest debt**\n\nIf you're carrying debt with high interest, like from credit cards or personal loans, consider tackling that before saving aggressively for a house. Those steep interest payments go directly to the lender and don't help reduce your debt or boost your savings. As a general rule, focus on paying off debt with the highest interest rates. Once you clear that debt, you'll free up extra cash to build your savings.\n\n### **Improving your [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/)**\n\nLowering your debt is a surefire way to improve your DTI. Lenders look at this ratio to see how much of your gross monthly income is tied up in debt payments. Most lenders like to see a DTI ratio below 36%, though some allow up to 43%. If yours is higher, especially over 50%, you may be seen as a risky borrower who could struggle with payments. While there are home lending options that accept higher DTI ratios, you may not get favorable loan terms. Ultimately, if you have a high DTI ratio or find it challenging to keep up with bills, you should focus on reducing your debt first.\n\n### **Boosting your [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/)**\n\nA better credit score improves your chances of qualifying for a home loan and earning favorable terms. If debt is dragging down your credit score, it may be due to high credit utilization. That’s the amount of debt you have compared to your available credit. To reduce credit score impact, aim for credit utilization below 30% by paying down high-interest debt. Most conventional loans require a minimum FICO® score of 620, but requirements will vary by loan and lender.",{"title":1120,"content":1121},"When saving for a house takes priority","When your debt is under control, you have more freedom to save for a down payment and react to market conditions.\n\n### **Comfortably managing debt**\n\nIf your DTI ratio and credit score look strong and you feel comfortable juggling your current debt, it might be a good time to save for that down payment. You don’t have to be debt-free to start; many people [afford a home](/calculators/affordability/) with lower-interest debts like student loans. Just be mindful of your other financial goals and obligations. No matter what you’re paying off or saving toward, most experts recommend that you always have an emergency fund that covers 3–6 months’ worth of expenses.\n\n### **Avoiding PMI with 20% down**\n\nSome loans require you to pay [private mortgage insurance](/home-buying/articles/pmi-home-loan/) (PMI) if your down payment is on the smaller side. If you want to shave down your monthly mortgage bill, steering clear of PMI can be a good strategy.\n\nFor [conventional loans](/home-loans/conventional-loan/), you need at least 20% down to avoid mortgage insurance costs. If you get a government-backed [FHA loan](/home-loans/fha-loan/), you’re automatically on the hook for mortgage insurance.\n\nJust remember to explore your mortgage options because [not all loans require a 20% down payment](/home-buying/articles/how-much-down-payment-for-a-house/) or come with PMI strings attached. Even if you can’t avoid PMI entirely, you have the option to [refinance](/refinancing/) down the line for new terms or a different loan.\n\n### **Seizing market opportunity**\n\nIn today’s competitive housing market, it’s smart to stay on top of [current interest rates](/rates/) and home prices. Lower rates can help you afford a loan, but a low-rate environment can also turn into a seller’s market—when an influx of buyers causes a spike in home prices.\n\nThe best thing you can do is keep an eye on trends and forecasts. If it looks like you should purchase sooner rather than later, you may want to focus on saving. But if you’re concerned about rates, paying off debts could help set you up for better mortgage terms in the future.",{"title":1123,"content":1124},"Balancing both: Debt payoff and savings at the same time","If you’re still split on whether to pay down debt or save, splitting could be the solution. With the right financial approach, you can work toward both goals. A popular budgeting method is the 50/30/20 rule. Here's how it breaks down: 50% of your income goes to essentials like housing and groceries, 30% is for your wants, and the remaining 20% gets split between saving and debt repayment. This way, you can work toward homeownership while keeping debt in check.\n\nBefore you go all in on a strategy, pressure test potential ideas. Plot out a few different scenarios and see how they affect your debt and savings over time. Use our [Affordability Calculator](/calculators/affordability/) to estimate how much house you could afford with different debt amounts and interest rates. You can also unpack the costs that go into budgeting for a home with our [mortgage affordability guide.](/home-buying/articles/how-much-money-do-you-need-to-buy-a-house/) Ultimately, checking in with a financial advisor can help you feel secure in your decisions and chart a clear path forward.",{"title":1126,"content":1127},"Next steps toward homeownership","When you’re confident in your financial profile and just about ready to [make offers](/home-buying/articles/how-to-make-an-offer/), you’ll want to [get preapproved for a loan](/home-loans/articles/how-to-get-pre-approved/). Preapproval gives you a good picture of what you can afford. It also shows sellers you're a serious buyer with financing already in the works, which can make your offer more competitive. Preapproval streamlines the closing process by getting a lot of the paperwork out of the way early on. All in all, it gives you and the seller peace of mind.",{"title":1129,"hideTitle":27,"content":1130},"FAQs","::faq{headline=\"FAQs\" :faqs='[{\"question\":\"Is it better to be debt-free before buying a house?\",\"answer\":\"Not necessarily. You don’t have to be completely debt-free to qualify for a mortgage. If your existing debt is manageable and both your credit score and DTI ratio are in a healthy range, you may still be in a strong position to get a mortgage.\"},{\"question\":\"What debt-to-income ratio do lenders prefer?\",\"answer\":\"Lenders usually like to see a debt-to-income (DTI) ratio under 36%, though some loan programs allow up to 43%. If your DTI is close to 50%, it's a good idea to pay down some debt. Keep in mind that DTI requirements can differ depending on the lender and loan type.\"},{\"question\":\"Can I qualify for a mortgage with student loans or credit card debt?\",\"answer\":\"Yes, you can still qualify for a mortgage while carrying debt if your DTI ratio is manageable and your overall credit profile is strong. A steady income and responsible payment history can also work in your favor.\"},{\"question\":\"How much should I save before buying a house?\",\"answer\":\"It's wise to aim for at least 20% of the purchase price. This can help you avoid private mortgage insurance (PMI) and potentially lower your monthly payments. However, you don’t always need 20% down. Some loan programs allow a smaller down payment depending on your qualifications.\"},{\"question\":\"Should I save for a down payment while still paying off student loans?\",\"answer\":\"If you have low-interest student debt, it’s often possible to save for a down payment while paying off your loans. However, if you have a lot of high-interest debt on your plate, it may make sense to focus on lowering your debt first.\"}]'}\n::","2025-10-03T15:11:00.000Z","When you’re facing two big financial goals, how do you decide which takes priority? Let’s take a look at your financial picture to determine whether you should pay off debt or save for a down payment. This is an important decision not only for overall financial health, but for mortgage readiness because your debt and down payment impact your ability to qualify for a home loan. Let’s dig into the factors to consider when deciding whether to pay off debt or invest in your future home, plus how to juggle both successfully.","Paying off debt vs. saving for a house: which should you do first?","2026-07-17T13:08:00.000Z",[765,1136,1137],"credit-score","down-payments",{"introText":1139,"body":1140,"text":769,"to":770},"Looking for more budgeting tips before buying a house?","We can help you figure out how to balance paying down debt and saving for a home.",{"title":1142,"description":1143},"Paying Off Debt vs. Saving for a House | Mortgage.com","Paying off debt or saving for a house—which comes first? Learn how lenders view your finances and help find your best path to mortgage readiness.","content:articles:home-buying:pay-off-debt-or-save-for-a-house.json","Pay Off Debt Or Save For A House","articles/home-buying/pay-off-debt-or-save-for-a-house.json",[808,1148,1152],{"label":1149,"slug":1136,"seo":1150},"Credit Score",{"description":1151},"Understand how your credit score impacts your ability to qualify for a home loan and how to improve it.",{"label":1153,"slug":1137,"seo":1154},"Down Payments",{"description":1155},"Learn more about down payments with helpful articles, tools, and guides to support your homeownership journey.",{"_path":1157,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":266,"l1":765,"linkNav":1158,"heroMedia":1159,"teaserImage":1162,"slug":1164,"sections":1165,"date":1187,"subheadline":1188,"headline":1189,"dateModified":1190,"isFeatured":6,"tags":1191,"link":1194,"seo":1197,"hasSectionNavigation":27,"_id":1200,"_type":78,"title":1201,"_source":80,"_file":1202,"_extension":78,"tagsDetails":1203},"/articles/home-buying/how-to-buy-a-house-with-low-income",{"introText":768,"text":769,"to":770},{"landscape":1160,"portrait":1161},"/media/how-to-buy-a-house-w-low-income-mobile-768x512.jpg","/media/how-to-buy-a-house-w-low-income-desktop-520x638.jpg",{"src":1163},"/media/how-to-buy-a-house-w-low-income-teaser-500x500.jpg","how-to-buy-a-house-with-low-income",[1166,1169,1172,1175,1178,1181,1184],{"title":1167,"content":1168},"Is it possible to buy a home on a low income?","You don’t need a high salary to become a homeowner. Lenders look at more than just paychecks when reviewing your application, and  there are low-income mortgage programs and assistance options designed specifically for buyers with limited earnings.\n\nYour approval odds improve when you strengthen factors like your [debt-to-income (DTI)](/home-buying/articles/what-is-a-good-debt-to-income-ratio/) ratio, [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/), employment history and savings. Strengthening these areas can improve your approval odds, and many buyers successfully combine a [government-backed loan](/home-buying/articles/government-backed-home-loans/) with down payment assistance to make their first home both attainable and affordable.",{"title":1170,"content":1171},"Loan programs that help low-income buyers","Low-income mortgage loans have unique requirements and benefits. Here are some of the most widely used:\n\n::inline-table{tableLayout=\"waffle\" :headers='[{\"value\":\"Loan Program\"},{\"value\":\"Best For\"},{\"value\":\"Key Benefits\"}]' :rows='[{\"column\":{\"valueOne\":\"FHA Loans\",\"valueTwo\":\"Buyers with lower credit scores (580+ for 3.5% down; 500-579 with 10% down) or limited savings\",\"valueThree\":\"Down payments as low as 3.5%. Flexible credit requirements. Allows higher debt-to-income ratios.\"}},{\"column\":{\"valueOne\":\"USDA Loans\",\"valueTwo\":\"Buyers in eligible rural/suburban areas with income within USDA limits\",\"valueThree\":\"No down payment. Competitive fixed rates. May cover closing costs.\"}},{\"column\":{\"valueOne\":\"VA Loans\",\"valueTwo\":\"Eligible veterans, active-duty members or qualifying surviving spouses \",\"valueThree\":\"No down payment or private mortgage insurance required. Lower funding fees for some borrowers.\"}},{\"column\":{\"valueOne\":\"State/Local Down Payment Assistance\",\"valueTwo\":\"First-time or income-qualified buyers (limits vary by program)\",\"valueThree\":\"Grants or forgivable loans to cover down payment and/or closing costs\"}}]'}\n::",{"title":1173,"content":1174},"Understanding down payment assistance programs ","If covering the [down payment](/tags/down-payments/) or [closing costs](/home-buying/articles/closing-costs/) is holding you back, down payment assistance programs (DPAs) can help bridge the gap. DPAs provide funds either as grants or low-interest loans to help cover these costs. They’re offered through state and local governments, nonprofits and even some employers.\n\nEligibility requirements vary, but many programs are designed for:\n\n* **First-time home buyers**: A first-time home buyer is often defined as someone who hasn’t owned a home in the past three years. Our [first-time home buyer guide](/home-buying/articles/first-time-home-buyer/) looks in-depth at who qualifies, loan options, tips, and more.\n* **Buyers within certain income limits**: These limits depend on your location and household size, and may be higher than you might expect.\n* **Homes under a purchase price cap:** This will typically be based on the median home price in your area.\n\nWhere to start:\n\n* Visit your state housing agency’s website for program listings and requirements.\n* Check HUD’s network of [local housing counseling agencies](https://www.hud.gov/i_want_to/talk_to_a_housing_counselor). If you’re already working with a lender, ask whether they partner with any down payment assistance providers. They may be able to connect you directly during pre-approval.\n\n::callout{body=\"Some down payment assistance programs have income limits well above what most consider “low income.” You might qualify even if you earn close to your area’s median income.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::",{"title":1176,"content":1177},"Tips to strengthen your mortgage application","A strong application can help you secure a better interest rate and lower monthly payments —even if you qualify for a low-income home loan. Here are some ways you can set yourself up for success:\n\n* **Boost your [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/)**:  Pay down revolving balances, fix errors on your credit report and review our guide on [buying a house with bad credit](/home-loans/articles/how-to-buy-a-house-with-bad-credit/).\n* **Lower your debt-to-income ratio:** Eliminating even small debts can make a big difference—learn more about **[how your debt-to-income ratio affects mortgage approval](/home-buying/articles/what-is-a-good-debt-to-income-ratio/)** to understand where you stand and how to improve it.\n* **Consider a co-borrower**: Adding another trusted person with steady income can increase your buying power.\n* **Show income stability:** Maintain steady employment and gather proof like W-2s, pay stubs and tax returns before applying.",{"title":1179,"content":1180},"Other costs to prepare for","Strong finances at the time of purchase are just part of the equation. Planning for ongoing and upfront expenses is equally important. Here are common costs to budget for:\n\n::content-table{headline=\"Additional costs of buying a home\" body=\"Be sure to include these in your budget.\" :tableData='[{\"row\":[{\"column\":\"Cost\"},{\"column\":\"Estimated Range\"}]},{\"row\":[{\"column\":\"Home inspection \"},{\"column\":\"$300-$500\"}]},{\"row\":[{\"column\":\"Appraisal \"},{\"column\":\"$300-$600\"}]},{\"row\":[{\"column\":\"Homeowners insurance \"},{\"column\":\"$1,000-$1,500/year\"}]},{\"row\":[{\"column\":\"Closing costs \"},{\"column\":\"2-5% of purchase price\"}]}]'}\n::\n\nWant to better understand closing costs? Check out our [guide on closing costs](/home-buying/articles/closing-costs/)—what they include,  how they’re calculated and ways to reduce them.",{"title":1182,"content":1183},"Common mistakes to avoid","Even the best low-income mortgage program can’t protect you from costly missteps. Here’s what to watch for:\n\n**Skipping [pre-approval](/home-loans/articles/how-to-get-pre-approved/)**\n\nWithout it, you may not know your true budget. Use our [Mortgage Calculator](/calculators/monthly/) to get a sense of what you might qualify for.\n\n**Overestimating your budget**\n\nJust because you’re approved for a certain amount doesn’t mean you should spend it all. Aim for a [monthly payment](/calculators/monthly/) that still leaves room for savings and emergencies. Our [Affordability Calculator](/calculators/affordability/) is a great place to start.\n\n**Ignoring assistance programs**\n\nMany buyers miss out on thousands in grants or low-interest loans simply because they don’t research what’s available.\n\n**Overlooking ongoing costs**\n\nFactor in property taxes, insurance, HOA fees and maintenance before you buy.\n\n**Rushing the process**\n\nTaking time to improve your credit, pay down debt and save can help you get better terms and more long-term stability.",{"title":1185,"hideTitle":27,"content":1186},"Buying a home with a low income FAQs","\n\n::faq{headline=\"Buying a home with a low income FAQs\" :faqs='[{\"question\":\"Can I buy a house with no down payment?\",\"answer\":\"Yes. Certain loan programs, like USDA loans (for rural and some suburban areas) and VA loans (for qualifying service members, veterans and some surviving spouses) offer 100% financing with no down payment required.\"},{\"question\":\"What is the minimum income required to qualify for a mortgage?\",\"answer\":\"There’s no set income threshold. Lenders look at your overall financial picture, including your debt-to-income (DTI) ratio, credit score and employment history, to determine how much you can afford to borrow.\"},{\"question\":\"What credit score do I need for a low-income loan?\",\"answer\":\"FHA loans accept credit scores as low as 580 with a 3.5% down payment. Some lenders may approve lower scores with a higher down payment or additional compensating factors.\"},{\"question\":\"Are there programs that help with down payments?\",\"answer\":\"Yes—down payment assistance programs from state and local agencies, nonprofits and even some employers offer grants or low-interest loans to help cover part or all of your down payment and sometimes closing costs.\"},{\"question\":\"Can I get a co-signer if I don’t qualify alone?\",\"answer\":\"Yes. A co-signer (or co-borrower) with stronger finances can help you meet income or credit requirements. Just remember, they’re equally responsible for the loan.\"}]'}\n::","2025-09-08T13:31:00.000Z","[Buying a home](/home-buying/) on a modest income can feel daunting, but it’s far from impossible. This guide covers the most common home loans for low-income buyers, with tips to boost your eligibility and a range of resources—whether you’re a first-time home buyer navigating the process or a returning buyer ready to invest again.","How to buy a house with low income","2026-07-17T12:53:00.000Z",[765,1192,1193],"loan-types","budget-planning",{"introText":1195,"body":1196,"text":769,"to":770},"Need help navigating low-income loan options?","Let’s talk it through together.",{"title":1198,"description":1199},"How to Buy a House With Low Income | Mortgage.com","Learn how to buy a house with low income, including mortgage options, down payment assistance programs and steps to help you qualify.","content:articles:home-buying:how-to-buy-a-house-with-low-income.json","How To Buy A House With Low Income","articles/home-buying/how-to-buy-a-house-with-low-income.json",[1204,1208,808],{"label":1205,"slug":1193,"seo":1206},"Budget Planning",{"description":1207},"Learn more about budget planning with helpful articles, tools, and guides to support your homeownership journey.",{"label":1209,"slug":1192,"seo":1210},"Loan Types",{"description":1211},"Explore resources about loan types—including types, requirements, and how to choose the right mortgage option.",{"_path":1213,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":1214,"l1":765,"linkNav":1215,"heroMedia":1216,"teaserImage":1219,"slug":1221,"disclosure":99,"sections":1222,"date":1244,"subheadline":1245,"headline":1246,"dateModified":1247,"isFeatured":6,"tags":1248,"link":1249,"seo":1252,"hasSectionNavigation":27,"_id":1255,"_type":78,"title":1256,"_source":80,"_file":1257,"_extension":78,"tagsDetails":1258},"/articles/home-buying/what-is-cost-of-living",5,{"introText":768,"text":769,"to":770},{"landscape":1217,"portrait":1218},"/media/cost-of-living-mobile-768x512.jpg","/media/cost-of-living-desktop-520x638.jpg",{"src":1220},"/media/cost-of-living-teaser-500x500.jpg","what-is-cost-of-living",[1223,1226,1229,1232,1235,1238,1241],{"title":1224,"content":1225},"What does “cost of living” mean?","Think of cost of living as a snapshot of how far your income goes in one location versus another. For example, in some cities, an income of $2,500 a month might cover rent, groceries and your car payment. In other places, that amount may barely cover housing. Calculating cost of living is a practical way to set realistic expectations when budgeting, job hunting or planning a move.",{"title":1227,"content":1228},"How is cost of living calculated?","Most cost-of-living indexes compare a selection of major spending categories to show how affordable (or not) one place is compared to another.\n\n::card{eyebrowIcon=\"\" body=\"Curious what life might cost in a new city? Our Cost-Of-Living Calculator may help.\" imagePosition=\"top\" ctaType=\"text-arrow\" marginSize=\"small\" :isInlineCard=false headline=\"Compare cost of living with our free calculator\" backgroundColor=\"\" icon=\"Calculator\" link=\"/calculators/cost-of-living/\" ctaText=\"Learn More\"}\n::\n\n### What’s included in cost-of-living estimates?\n\nA common misconception is that housing is the only cost that matters—but it's just one part of the equation. A true cost-of-living comparison takes into account all of the major expenses that impact your daily life. Cost of living often varies depending on the source, but here’s what typically gets factored in: \n\n* **Housing:** Rent or mortgage payments, property taxes and homeowners or renters insurance. \n* **Groceries:** Basic food and household items like milk, meat, produce and cleaning supplies. \n* **Utilities:** Monthly bills for electricity, natural gas, water, garbage collection, phone, internet and cable service. \n* **Transportation:** Car payments, gas, car insurance or public transit fares.\n* **Healthcare:** Out-of-pocket expenses for medical care, insurance premiums, prescriptions and routine care. \n* **Taxes:** Local and state income, property and sales tax rates—all of which can impact take-home pay and everyday expenses. \n\nOther categories that may be included are: \n\n* **Childcare and education:** Daycare, babysitters and school fees.\n* **Miscellaneous/personal spending:** Clothing, entertainment, dining and other flexible personal expenses. \n\n###  Who calculates cost of living? \n\nCost-of-living comparisons are compiled by several trusted organizations—some government, some academic and some designed with consumers in mind. Each one offers a different perspective on everyday costs across the U.S. Here’s a quick guide to some of the most reliable sources: \n\n* **Bureau of Labor Statistics:** Tracks national price trends through the Consumer Price Index—a key measure of inflation and cost-of-living changes over time. \n* **Council for Community and Economic Research:** Publishes the Cost of Living Index, which compares prices in more than 300 U.S. cities across categories like housing, groceries and transportation. \n* **MIT Living Wage Calculator:** Estimates the income needed to meet basic expenses by location and household size. \n* **Bureau of Economic Analysis:** Provides Regional Price Parities, which show how prices vary from state to state and city to city, helping you compare purchasing power across regions.",{"title":1230,"content":1231},"Cost of living by state (2025 data)","One of the easiest ways to compare costs across the country is by using the Cost of Living Index, published by the Council for Community and Economic Research. Each location receives a score based on how its prices stack up against the national average, which is set at 100. \n\n* A score above 100 means the area is more expensive than average.\n* A score below 100 means it’s more affordable. \n\nThis index takes into account everyday expenses like housing, groceries, transportation and healthcare, giving you a well-rounded view of local costs.\n\n### Cost-of-living trends \n\nWhen you zoom out and look at the national picture, some clear patterns emerge. The Northeast and West Coast are typically the most expensive, driven by high housing costs, local taxes and elevated wages in dense urban centers. Meanwhile, the Midwest and South tend to be more budget friendly thanks to lower housing costs and generally modest tax rates. And Sunbelt states like Florida, Texas and Tennessee often land just above the national average, offering a mix of affordability and strong job growth—especially in areas that don’t charge state income tax. \n\n### Highest cost of living states \n\nThe states with the highest cost of living include Hawaii, Alaska, California, Massachusetts, New York and Washington, D.C. Hawaii regularly tops the list, with prices for housing and groceries well above average. In California and New York, high housing demand, income taxes and expensive services drive up the overall cost of living. For example, California’s state income tax tops out at 13.3% for those whose annual household income is $1 million or more, the highest in the country. \n\n### Lowest cost of living states \n\nThe best states for cost of living—like West Virginia, Oklahoma and Kansas—consistently rank among the most affordable places to live. These states offer housing prices 20-30% below the national median and boast lower costs for essentials like food, utilities and healthcare. Oklahoma also has no state-level property tax, and both Oklahoma and West Virginia have relatively low income tax rates, helping stretch your take-home pay. \n\n### States with the highest cost of living\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Rank\"},{\"value\":\"State\"},{\"value\":\"Index #\"}]' :rows='[{\"column\":{\"valueOne\":\"1\",\"valueTwo\":\"Hawaii\",\"valueThree\":\"179.7\"}},{\"column\":{\"valueOne\":\"2\",\"valueThree\":\"150.8\",\"valueTwo\":\"Massachusetts\"}},{\"column\":{\"valueTwo\":\"California\",\"valueThree\":\"136.7\",\"valueOne\":\"3\"}},{\"column\":{\"valueTwo\":\"District of Columbia\",\"valueThree\":\"135.2\",\"valueOne\":\"4\"}},{\"column\":{\"valueOne\":\"5\",\"valueTwo\":\"Alaska\",\"valueThree\":\"127.7\"}}]'}\n::\n\n### States with the lowest cost of living  \n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Rank\"},{\"value\":\"State\"},{\"value\":\"Index #\"}]' :rows='[{\"column\":{\"valueTwo\":\"Oklahoma \",\"valueThree\":\"84.4\",\"valueOne\":\"1\"}},{\"column\":{\"valueTwo\":\"Mississippi\",\"valueThree\":\"85.5\",\"valueOne\":\"2\"}},{\"column\":{\"valueTwo\":\"Alabama\",\"valueOne\":\"3\",\"valueThree\":\"87.9\"}},{\"column\":{\"valueTwo\":\"West Virginia\",\"valueOne\":\"4\",\"valueThree\":\"88.1\"}},{\"column\":{\"valueTwo\":\"Kansas\",\"valueThree\":\"88.9\",\"valueOne\":\"5\"}}]'}\n::\n\nSource: [Missouri Economic Research and Information Center](https://meric.mo.gov/data/cost-living-data-series?). Last updated Q3 2025.",{"title":1233,"content":1234},"Comparing cost of living by city","Cost of living can vary just as much between cities as it does between states—sometimes even more. Large metro areas like New York City and San Francisco routinely rank among the most expensive in the country, driven by sky-high rent, steep taxes and pricey everyday essentials. In contrast, rapidly growing cities like Austin and Tampa offer more affordable living, thanks to lower housing costs and no state income tax.\n\nCost of living examples: NYC vs. Austin\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Expense category\"},{\"value\":\"New York City\"},{\"value\":\"Austin\"}]' :rows='[{\"column\":{\"valueOne\":\"Rent\",\"valueTwo\":\"$4,110.30\",\"valueThree\":\"$2,046.24\"}},{\"column\":{\"valueOne\":\"Basic utilities\",\"valueTwo\":\"$182.32\",\"valueThree\":\"$173.55\"}},{\"column\":{\"valueOne\":\"Income taxes\",\"valueTwo\":\"State income tax up to 10.9%\",\"valueThree\":\"No state income tax\"}}]'}\n::\n\nEven within the same state, the cost of living can vary a lot. For example, moving from Albany to NYC or Fresno to San Francisco could raise your expenses significantly. That’s why it pays to compare individual metro areas—not just states—so you can gain a clear idea of how far your budget might go in different areas.",{"title":1236,"content":1237},"How location affects affordability","It’s not just about how much you earn—it’s how far your money goes. A $60,000 salary might comfortably cover the essentials in San Antonio but fall short in San Francisco. That’s why understanding the cost of living is key when planning a move or switching jobs. \n\nWith more people working remotely, many are choosing to live in lower-cost cities while keeping higher-paying jobs in expensive metro areas—gaining more space, savings and overall higher quality of life.",{"title":1239,"content":1240},"What affects cost of living the most?","Housing tops the list. Rent or mortgage payments make up the largest portion of a household budget. For example, average monthly rent in San Jose is around $3,000—more than double the $1,450 average in Cincinnati. \n\nTaxes are another major expense. States like Texas, Florida and Alaska don’t tax income, but they often make up for it with higher property or sales taxes. In contrast, residents of New York and California may pay 9-10% in state income taxes. Healthcare and childcare costs also vary widely by region. For young families, childcare alone can add thousands of dollars per year. \n\nBroad economic factors like inflation and supply chain disruptions can also impact everyday costs. For instance, in July 2025, gas prices in California increased to an average of $4.31 per gallon—far above the national average—due to various supply chain constraints. Even as national inflation trends ease, local challenges can continue to push prices higher.\n\nFor homebuyers, mortgage terms can significantly influence long-term affordability. Factors like interest rates, down payment requirements and loan structure all affect how manageable monthly housing costs are. Exploring different mortgage options, such as Citi’s [home loan](/home-loans/) offerings, may help align housing costs with your broader cost-of-living budget.",{"title":1242,"content":1243,"hideTitle":27},"Cost of Living FAQs","::faq{:faqs='[{\"question\":\"What does cost of living mean?\",\"answer\":\"Cost of living is the amount of money needed to cover essential expenses like housing, food, transportation and healthcare in a specific city or region. It’s a key factor in determining how affordable a location is, and it helps you compare locations when considering a move or a new job.\"},{\"question\":\"How do I compare cost of living between cities?\",\"answer\":\"You may be able to use our Cost-of-Living Calculator to compare expenses in different cities. You can also consult tools like the Cost of Living Index, published by the Council for Community and Economic Research, which compares prices across more than 300 U.S. metro areas. These tools help you estimate how your expenses will change if you move.\"},{\"question\":\"What is cost of living: core components in estimates\",\"answer\":\"Typical cost-of-living estimates include major budget categories like housing, groceries, utilities, transportation, healthcare and taxes. Depending on the source, they may also factor in childcare and other everyday costs.\"},{\"question\":\"What is the most expensive state to live in?\",\"answer\":\"As of 2025, Hawaii has the highest cost of living in the U.S. Housing costs, grocery prices and everyday goods are well above the national average due to geographic isolation and limited supply chains.\"},{\"question\":\"Does cost of living affect salary?\",\"answer\":\"Yes, cost of living usually impacts salary offers. Employers in higher-cost cities typically offer increased compensation to help cover higher expenses like rent, transportation and local taxes. If you’re relocating, it’s a good idea to factor in both salary and cost of living to understand your true buying power.\"}]' headline=\"Cost of Living FAQs\"}\n::","2025-07-28T07:58:00.000-07:00","**Key insights:** \n\n* Cost of living is how much money you need to cover necessary costs in a given place \n* The prices of housing, groceries, utilities and more factor into an area’s cost of living \n* Comparing cost of living in different states and cities can help you plan for a move or decide whether to take a new job \n\nCost of living is how much money it takes to cover your daily expenses, like housing, groceries, healthcare, transportation and taxes, in a specific location. Whether you’re relocating, switching jobs or just curious how your money stacks up, a cost-of-living comparison by state or city can help you plan smarter for your next move.","What is cost of living? A state and city breakdown","2026-04-01T14:19:00.000Z",[765,1193],{"introText":1250,"body":1251,"text":769,"to":770},"Planning a Move?","We can help you explore options that fit your budget.",{"title":1253,"description":1254},"What Is Cost of Living? State Comparison Guide | Mortgage.com","Understand what cost of living means and how it varies by state and city. Learn how to compare expenses with cost of living before making a move.","content:articles:home-buying:what-is-cost-of-living.json","What Is Cost Of Living","articles/home-buying/what-is-cost-of-living.json",[1204,808],{"_path":1260,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":1261,"l1":765,"linkNav":1262,"heroMedia":1263,"teaserImage":1266,"slug":1268,"disclosure":99,"sections":1269,"date":1294,"subheadline":1295,"headline":1296,"dateModified":1297,"isFeatured":27,"tags":1298,"link":1299,"seo":1301,"hasSectionNavigation":27,"_id":1304,"_type":78,"title":1305,"_source":80,"_file":1306,"_extension":78,"tagsDetails":1307},"/articles/home-buying/first-time-home-buyer",9,{"introText":768,"text":769,"to":770},{"landscape":1264,"portrait":1265},"/media/article-first-time-home-buyer-mobile-768x512.jpg","/media/article-first-time-home-buyer-mobile-desktop-520x638.jpg",{"src":1267},"/media/article-first-time-home-buyer-mobile-teaser-500x500.jpg","first-time-home-buyer",[1270,1273,1276,1279,1282,1285,1288,1291],{"title":1271,"content":1272},"Who is a first-time home buyer?","You don’t have to be brand new to real estate to qualify as a first-time home buyer. According to the Federal Housing Administration (FHA) and the IRS, you may be considered a first-time buyer if you haven’t owned a primary residence, meaning a home that isn’t a vacation or rental property, in the past three years.\n\nYou may also qualify if:\n\n* You previously owned a mobile or manufactured home that wasn’t permanently attached to a foundation\n* You inherited a home, but never lived in it as your primary residence\n* You owned a property that didn’t meet local or state building codes and would have cost more to repair than rebuild\n\n\nThanks to these broader definitions, you may have some of the qualifications for first-time home buyer programs, grants and loans.",{"title":1274,"content":1275},"What are the benefits of first-time buyer programs?","First-time home buyer programs are designed to make homeownership more accessible, especially if you’re working with a tight budget or limited credit history. These programs can help ease common roadblocks by offering: \n\n*  **Low or no down payment:** Some loans require as little as 3% down , or even nothing at all. \n* **Reduced closing costs:** Grants or lender credits can offset fees like inspections, appraisals and title services. \n* **Flexible credit requirements:** Many programs are open to buyers with fair or limited credit histories. \n* **Homeownership education courses:** You’ll get access to courses that walk you through the basics of budgeting for a mortgage and long-term financial planning. \n* **State and federal tax credits:** Depending on where you live, you may qualify for valuable tax breaks that lower your overall cost of buying. \n\n The goal of these programs is to make homeownership feel possible, so you can focus on finding the right place to live instead of how to afford it.",{"title":1277,"content":1278},"How do I qualify for a first-time buyer program?","While every first-time buyer program\nhas its own requirements, two major factors typically come into play:\n\n* **Your [debt-to-income ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/) (DTI):** Your DTI measures how much of your monthly income goes toward debt payments. A lower ratio signals to lenders that you’re more likely to manage mortgage payments consistently. Estimate your DTI now with our [DTI Ratio Calculator](/calculators/debt-to-income-ratio/).\n* **[Your credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/):** Your credit score plays a significant role in determining your eligibility. Higher credit unlocks better interest rates and more loan options. Minimum score requirements may vary by loan type, so always double-check the requirements when you apply.\n\nOther factors that can affect your eligibility are:\n\n* **Income limits:** Many programs set income caps based on your area’s median income.\n* **Home purchase price caps:** Some programs limit how much you can spend on your new home, ensuring that the assistance is directed to those who need it most.\n* **Location:** Some programs are only available in specific counties, cities or ZIP codes.\n* **Education courses:** You may need to complete home buyer education classes.",{"title":1280,"content":1281},"Types of first-time home buyer programs","Before diving into specific loan types, let’s look at the big picture. Most first-time buyer programs fall into four main categories. Here’s a quick overview:\n\n### Institutional lender programs\n\nBanks and other private lenders offer mortgage programs specifically for first-time buyers with relaxed requirements and reduced costs. For example, [Citi's HomeRun® Mortgage](/home-loans/home-run/) offers a low-[down payment](/home-buying/articles/how-much-down-payment-for-a-house/) option that helps support buyers from a wide range of financial situations as they take their first steps into buying property. However, such programs may be available only in select markets or have other limitations, such as income or purchase price caps, so be sure to read the fine print.\n\n::disclaimer-dialog{buttonCopy=\"HomeRun Terms & Conditions\" :dialogCopy='\"### HomeRun Terms & Conditions\\n\\n\\nHomeRun® is available in markets with Citibank branches for loans on the primary residence of borrowers who qualify, and is also subject to income, property, product and other restrictions. To be eligible for up to 97% financing, the property must be a single-family home (including condos, co-ops and planned unit development) with a loan amount up to $832,750. Certain condo and co-op projects may be subject to lower LTVs. Single-family homes in certain high-cost markets with loan amounts between $832,751 and $1,249,125 are eligible for up to 95% financing. Non-traditional credit on conforming loan sizes requires 5% down payment. Non-traditional credit is not permitted on loans exceeding conforming loan limits. Two-unit properties are eligible for 89.99% financing with loan amounts up to $1,066,250, or 85% up to $1,599,375 in certain high-cost markets. In addition to home buying education, borrowers of two-unit properties must participate in landlord training from a Citi-approved community agency prior to closing. HomeRun is not available on cash-out refinance transactions.\"'}\n::\n\n### Government-backed programs \n\nThe federal government offers many different types of programs to help first-time home buyers. There are loans backed by government agencies like the FHA, or loans for specific groups of people like VA loans, which are geared toward military veterans and their families. With these loans, the government insures the loans so lenders are protected even if the borrower defaults. \n\nThe government also supports the availability of funds for mortgages through government-sponsored enterprises like Fannie Mae and Freddie Mac, offsetting costs for both banks and borrowers.\n\n### State and local programs \n\nMany states and localities offer their own programs, separate from the federal government. These programs can include down payment assistance, competitive mortgage rates and tax credits tailored to make homeownership more accessible. You can even combine them with federal programs to maximize your benefits. \n\n### Charitable, nonprofit and other programs \n\nCharitable and nonprofit programs offer grants and assistance, often targeting specific communities. Requirements to qualify can differ across programs, so make sure to understand the application process.",{"title":1283,"content":1284},"What loans are available for first-time home buyers?","Now that you’ve got the big picture, let’s dig deeper into the popular loans, programs and grants that you might qualify for.\n\n### FHA Loans\n\n[FHA loans](/home-loans/fha-loan/) are offered by the Federal Housing Administration. They let you put down as little as 3.5% if you have fair credit. Plus, they come with a unique perk: Your mortgage may be assumable. That means if you put your home back on the market, a buyer can take over your loan with the same interest rate. \n\nKeep in mind that FHA loans come with mandatory [mortgage insurance premiums (MIP)](/home-buying/articles/mortgage-insurance/) that may increase your monthly payment, along with restrictions and requirements specific to an FHA mortgage.\n\n### VA Loans\n\n[VA loans](/home-loans/va-loan/) are available to veterans, active-duty service members and eligible surviving spouses. You may qualify for competitive interest rates thanks to support from the U.S. Department of Veterans Affairs.\n\n### Citi HomeRun Mortgage\n\nCiti’s HomeRun Mortgage is a great option for first-time buyers and those in underserved communities. Requiring as little as 3% down and no PMI, this mortgage option helps make homeownership more accessible. [HomeRun](/home-loans/home-run/) also offers flexible credit guidelines and allows non-traditional income sources to support buyers who may not qualify for conventional loans.\n\n### HomeReady® Mortgage\n\n[](/home-loans/home-ready-home-possible)This program from [Fannie Mae](/home-loans/home-ready-home-possible/) caters to low- to moderate-income buyers. Requiring a down payment as low as 3% and offering the ability to use gift funds or grants, HomeReady loans are especially helpful if you’re buying in a high-cost area or earning less than the area’s median income. Select markets only and income limitations apply.",{"title":1286,"content":1287},"Are there first-time buyer grants by state?","Many states offer [first-time home buyer grants](https://www.hud.gov/states) and assistance programs that can help cover upfront costs like the down payment and closing fees. These programs are typically provided through each state’s Housing Finance Authority (HFA) and may be combined with federal or lender-backed loan options. \n\n### Down payment assistance (DPA) \n\nSaving for a down payment is one of the biggest hurdles for new buyers. That’s why many states offer down payment assistance (DPA) through grants or forgivable loans. These programs can cover thousands of dollars toward your purchase, some with no repayment required if you stay in the home for a certain number of years. \n\n### Closing cost support \n\nState and local programs may help with closing costs like inspections, title fees and escrow charges. Support may come in the form of grants, deferred-payment loans or matched savings programs. These can ease the financial burden of homebuying and help you move forward with less cash up front. \n\n### Explore state programs \n\nGrant and assistance programs vary widely by location. Here are some popular state-level options to explore:\n\n* **California:** [CalHFA MyHome Assistance Program](https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm) \n* **Florida:** [Florida Assist program](https://www.floridahousing.org/programs/homebuyer-overview-page)\n* **Texas:** [My First Texas Home](https://thetexashomebuyerprogram.com/products/my-first-texas-home) and [Texas Bootstrap Loan Program](https://www.tdhca.texas.gov/programs/texas-bootstrap-loan-program) \n* **New York:** [Achieving The Dream Program ](https://hcr.ny.gov/achieving-dream-program)\n* **Illinois:** [IHDAccess Forgivable](https://www.inb.com/loans/mortgages/ihdaccess-forgivable-mortgage-loan/) \n\nTo get the most accurate info, visit your state’s Housing Finance Authority website. \n\n Also, be sure to check out our [Cost of Living Calculator](/calculators/cost-of-living/) to possibly evaluate affordability in your state, or our [Home Affordability Calculator](/calculators/affordability/) to see how much home you can afford. \n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"Many first-time buyers combine a low-down-payment loan with state or employer assistance programs to maximize savings. You don’t have to choose just one program—look into all the options that might apply to you.\"}\n::",{"title":1289,"content":1290},"Charitable, nonprofit & other first-time home buyer programs","Plenty of charitable, nonprofit and third-party groups work to see homeownership thrive in their community. These are just a few standout programs, so look into what’s available in your neck of the woods, from company benefits to local housing initiatives. \n\n### Habitat for Humanity \n\nThis nonprofit rolls up its sleeves and builds or revamps homes for those in need. They offer generous zero-interest loans to first-time home buyers who earn 60% or less of the local median income.\n\n### Neighborhood Assistance Corporation of America\n\nThis HUD-certified nonprofit helps first-time home buyers obtain a low-rate mortgage without a down payment, closing costs, or mortgage insurance. If you have [lower credit](/home-loans/articles/how-to-buy-a-house-with-bad-credit/), no worries. This program uses rent payment history and other factors to determine your eligibility. \n\n### Employer-sponsored first-time home buyer programs\n\nSome employers also offer benefits to help you buy a home, including matching contributions or direct grants toward your down payment. There may be rules around income limits and how long you’ll need to stay at the job. \n\n### Loans and grants for student borrowers \n\nThere are even programs that cater to students with limited savings and significant debt. For instance, Ohio offers a Grants for Grads program that provides up to 3-3.5% down payment support for recent graduates.",{"title":1292,"hideTitle":27,"content":1293},"First-time home buyer FAQs","::faq{headline=\"First-time home buyer FAQs\" :faqs='[{\"question\":\"Can I qualify if I’ve owned a home before?\",\"answer\":\"Yes. Many programs define “first-time home buyer” as someone who hasn’t owned a primary residence in the past 3 years. Additionally, you may qualify if your previous home was a mobile home or temporary structure, or if it didn’t meet safety regulations and required repairs that exceeded the home’s value.\"},{\"question\":\"Can I combine grants with mortgage programs?\",\"answer\":\"Often, yes. Many buyers combine state or local down payment assistance grants with federal loans like FHA or USDA programs. That said, every program has its own rules, so be sure to review the details to see which combinations are allowed.\"},{\"question\":\"What documents do I need to apply?\",\"answer\":\"Required documents vary by program, but most will ask for: Proof of income (pay stubs, tax returns or bank statements), your credit report, proof of employment, debt and asset information (e.g., car loans, student loans, savings), identification (driver’s license, Social Security number) and proof of previous homeownership or housing history, if applicable. Check with your lender or housing agency for a full checklist tailored to your program.\"},{\"question\":\"How long does the approval process take?\",\"answer\":\"It depends on the program and your financial profile. On average, approval can take a few weeks to a couple of months. Factors that may impact your timeline include the type of loan or assistance program, the complexity of your financial situation and how quickly you provide documents. Keeping in close contact with your lender or housing counselor can help you stay on track.\"}]'}\n::","2025-07-23T10:00:00.000-05:00","**Key insights:** \n\n* First-time home buyer programs offer benefits like low or no down payments, reduced closing costs, flexible credit requirements, education courses and potential tax credits that make buying a home more attainable \n* You may qualify as a first-time home buyer even if you’ve owned property before, as many programs define first-time buyers as those who haven’t owned a primary residence in the past three years \n* Citi’s HomeRun® Mortgage helps remove common first-time buyer hurdles by offering low down payment options, flexible credit guidelines and no required mortgage insurance. Select markets only and income limitations apply.\n\nLooking to buy your first home? First-time home buyer loans, grants and programs can make the path to homeownership more affordable than you might expect. From down payment assistance to special loan programs with flexible terms, numerous resources are available to help first-time buyers make their dream of homeownership a reality.","First-time home buyers: programs, loans and how to qualify","2026-05-19T14:05:00.000Z",[854,1005,765],{"introText":1300,"text":769,"to":770,"body":1196},"Need help finding a Citi program that works for you?",{"title":1302,"description":1303},"First-Time Home Buyers: Programs, Loans & How to Qualify | Mortgage","Are you a first-time home buyer? Learn how to qualify for loan options and grants that may help you afford a mortgage.","content:articles:home-buying:first-time-home-buyer.json","First Time Home Buyer","articles/home-buying/first-time-home-buyer.json",[866,1016,808],{"_path":1309,"_dir":765,"_draft":6,"_partial":6,"_locale":7,"readTime":1261,"l1":765,"linkNav":1310,"heroMedia":1311,"teaserImage":1314,"outro":7,"slug":1316,"sections":1317,"date":1345,"subheadline":1346,"headline":1347,"isFeatured":6,"tags":1348,"link":1349,"seo":1352,"hasSectionNavigation":27,"_id":1355,"_type":78,"title":1356,"_source":80,"_file":1357,"_extension":78,"tagsDetails":1358},"/articles/home-buying/what-credit-score-do-you-need-to-buy-a-house",{"introText":768,"text":769,"to":770},{"landscape":1312,"portrait":1313},"/media/article-what-credit-score-do-you-need-to-buy-a-house_-mobile-768x512.jpg","/media/article-what-credit-score-do-you-need-to-buy-a-house_-mobile-desktop-520x638.jpg",{"src":1315},"/media/article-what-credit-score-do-you-need-to-buy-a-house_-mobile-teaser-500x500.jpg","what-credit-score-do-you-need-to-buy-a-house",[1318,1321,1324,1327,1330,1333,1336,1339,1342],{"title":1319,"hideTitle":27,"content":1320},"Disclaimer","Disclaimer: Citi may have different eligibility criteria and/or product offerings than those mentioned on mortgage.com.",{"title":1322,"content":1323},"Why your credit score matters when buying a home","Lenders use your credit score to gauge how you’ve handled debt in the past and how likely you are to repay what you borrow. [FICO®](https://www.myfico.com/) credit scores range from 300 to 850, but the ideal credit score to purchase a home depends on the type of loan you’re applying for—from zero credit requirements to scores of 700 or more.\n\n::disclaimer-dialog{buttonCopy=\"FICO Terms & Conditions\" :dialogCopy='\"## FICO® Terms & Conditions\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO® Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide ‘credit repair’ services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\\n\\nYour FICO Score is calculated based on data from your Equifax credit report using the FICO Bankcard Score 8 model and may be different from other credit scores. FICO Score(s) are intended for and delivered only to the Primary cardmember and only if a FICO Score is available. Disclosure of this score is not available for all Citi products and Citi may discontinue displaying the score at our discretion.\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\"'}\n::\n\nIn general, the higher your credit score, the lower your interest rate, which could save you thousands of dollars over the life of your loan. A lower credit score can mean higher rates and stricter terms, placing more roadblocks between you and home sweet home.\n\n::callout{title=\"How a higher credit score reduces interest\" body=\"Let’s say you’re taking out a 30-year fixed loan for $300,000. With a credit score of 680, you might land a 7.44% APR. But bump up that score to 700, and your rate could drop to 7.32%. That 0.12% reduction in interest would save you $24 each month and $8,467 over the life of your loan. Now, just think about what you could do with those extra dollars.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::\n\n### FICO score vs. credit score\n\nA credit score is the general term for the numbers that lenders use to help determine your creditworthiness. One of the most commonly used models is your FICO score, developed by the Fair Isaac Corporation.\n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"If you’re a Citi cardmember, you have free access to your FICO score—log in to check it out. If your bank doesn't partner with FICO, it’s worth checking to see if your credit card issuer does.\"}\n::",{"title":1325,"content":1326},"What is a good credit score to buy a home?","First, let’s go over the FICO score categories:\n\n300-579: Poor\\\n580-669: Fair\\\n670-739: Good\\\n740-799: Very Good\\\n800-850: Exceptional\n\n700 is a good spot to be in if you’re ready to go house hunting, and 740 is even better if you want to lock in the most competitive rates and save big on interest over time. See for yourself by plugging different interest rates into our Mortgage Calculator to explore how much you could save with a higher credit score. The minimum credit score to buy a house in 2025 still looks to be 500 if you’re using an FHA loan with a 10% down payment.",{"title":1328,"content":1329},"What credit score do you need for different types of loans?","Fortunately, you don’t need perfect credit to land a loan. Let’s check out several loan types and their typical credit requirements.\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Mortage type\"},{\"value\":\"Minimum credit score\"},{\"value\":\"Purpose\"}]' :rows='[{\"column\":{\"valueOne\":\"Conventional loans \",\"valueTwo\":\"620\",\"valueThree\":\"For borrowers with good credit and stable income\"}},{\"column\":{\"valueOne\":\"FHA loans \",\"valueTwo\":\"500 (with 10% down payment)      580 (with 3.5% down payment)\",\"valueThree\":\"For first-time home buyers or people with lower credit and a smaller down payment\"}},{\"column\":{\"valueOne\":\"USDA loans\",\"valueTwo\":\"640 \",\"valueThree\":\"For rural home buyers in qualifying regions; requirements vary by lender\"}},{\"column\":{\"valueOne\":\"VA loans\",\"valueTwo\":\"620\",\"valueThree\":\"For service members, veterans and eligible surviving spouses looking for no down payment; requirements vary by lender\"}},{\"column\":{\"valueOne\":\"Jumbo loans\",\"valueTwo\":\"680\",\"valueThree\":\"For borrowers with strong credit buying in high-cost areas; requirements vary by lender\"}}]'}\n::",{"title":1331,"content":1332},"Can you get a mortgage with no credit history?","Lenders know that a credit score doesn’t always tell the whole story. If you’ve never had a credit card or taken out a loan, you may not have a traditional credit history—but you still have a financial track record. In these cases, manual underwriting may be an option. This process involves a real person (not just an algorithm) reviewing other proof of your financial responsibility, such as:\n\n* Rent\n* Utilities\n* Insurance premiums\n* Phone plans\n* Daycare/tuition\n* Entertainment services\n* Gym memberships\n* Pay-over-time plans\n\nOn top of non-traditional forms of credit history, you can boost your approval odds by making a large [down payment](/home-buying/articles/how-much-down-payment-for-a-house/) to mitigate the lender’s risk or by pursuing an [FHA loan](/home-loans/fha-loan/), which offers more lenient credit requirements.",{"title":1334,"content":1335},"How is your credit score calculated?","Three major credit bureaus report your credit score, using slightly different formulas: Equifax®, Experian® and TransUnion®. If you’re applying for a mortgage by yourself, a lender will use the median (or middle score) as your “official” credit score. If you’re [applying for a mortgage](/home-buying/articles/apply-for-a-mortgage) with two or more people, the lender will typically go by the lowest median score of all the applicants.\\\nIn some cases, the average median score of all borrowers will be used.\n\n::callout{title=\"Credit score evaluation in action\" body=\"Let’s say you and a co-borrower submit a mortgage application together. If your median credit score is 600 and theirs is 700, most lenders would use your 600 score as the deciding number. That means the applicant with the lowest credit score may have the biggest impact on the lender’s decision.\" image=\"\" :media='{\"landscape\":\"/media/mobile-719x300-1-.jpg\",\"portrait\":\"/media/desktop-327x245.jpg\"}'}\n::",{"title":1337,"content":1338},"How to improve your credit score before buying a house","So, you’re ready for a house, but your credit score isn’t? Don’t sweat it—we’ve got actionable ways to get that number into better shape.\n\n### 1. Knock out existing debt\n\nLenders want to see that you can handle your current debt and have room to take on more. Chipping away at your existing debt not only feels good—it can have a positive impact on your credit. If you have big credit card bills or student loans, keep paying them down until they’re off your plate.\n\nThis helps your credit from two angles: your [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio) and your credit utilization ratio. Remember, the DTI ratio measures how well you manage debt. Your credit utilization ratio compares your spending to your credit limits. So, if you’re holding onto a high balance, lenders may assume you can’t handle any more debt.\n\n### 2. Make payments on time\n\nLenders love a reliable borrower. When you build up a history of paying your bills on time, you look trustworthy, which can result in your credit score increasing. This applies to many payments, like electricity and phone bills, so it’s a good idea to stay on top of every expense. \n\n### 3. Hold off on opening new lines of credit\n\nTo make a good impression, avoid applying for new credit accounts right before your mortgage application and during the approval process. If you do, your credit score could get dinged for hard inquiries on your credit report.",{"title":1340,"content":1341},"What else affects mortgage approval besides credit score?","Beyond your credit score, lenders factor in a few other indicators of creditworthiness: [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/), loan-to-value (LTV) ratio and income. If you want to find out how well you currently manage debt, take the [DTI Calculator](/calculators/) for a spin.\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Factor lenders consider\"},{\"value\":\"Description\"},{\"value\":\"Requirements\"}]' :rows='[{\"column\":{\"valueOne\":\"Debt-to-income (DTI) ratio\",\"valueTwo\":\"The relationship between the debt you owe and the income you earn each month used to assess if you can manage another debt payment.\",\"valueThree\":\"A DTI lower than 50% improves your odds. The lower your DTI, the more income you have to spare for an additional mortgage payment.\"}},{\"column\":{\"valueOne\":\"Loan-to-value (LTV) ratio\",\"valueTwo\":\"The home’s appraised value vs. the amount you’re borrowing, calculated by dividing the loan amount by the home price, written as a percentage.\",\"valueThree\":\"Lenders typically look for an LTV ratio of 80% or lower, which is why a 20% down payment is often required. The more of your own money you invest upfront, the less risk the lender takes on. \"}},{\"column\":{\"valueOne\":\"Income\",\"valueTwo\":\"Salary can affect what type of loan you qualify for and the interest rate you’re offered.\",\"valueThree\":\"Lender requirements vary, but most will want proof of income via bank statements, paystubs and W-2s. FHA and USDA loans are ideal for lower credit borrowers. \"}}]'}\n::",{"title":1343,"content":1344},"Where to check and monitor your credit score for free","Keep tabs on your progress by monitoring your creditworthiness. You can review your past credit history (but not your score) for free each week via the government-authorized [AnnualCreditReport.com](http://AnnualCreditReport.com.). You can also track your credit score for free weekly through services like [Credit Karma](https://www.creditkarma.com/lp/free-credit-scores-v12a?gclsrc=aw.ds&gad_source=1&gad_campaignid=20266610103&gbraid=0AAAAADrT-VckmG2WWRqdeIWuQtsiDGNIh&gclid=CjwKCAjwz_bABhAGEiwAm-P8YbsDDL9J7Lgo6l1yerSEgO0vrq665wzqrjcd-nLOpGaSzkrPes4UfxoCP34QAvD_BwE), [Experian](https://usa.experian.com/mfe/credit/report/experian/now?op=XXXX-ALT-AC2-XXX-QAR-XXXXXXX-XX-EXP-VMAC-SEM-XXXXXX-XXXXXX-XXXXX&_gl=1*1n6y7el*_gcl_aw*R0NMLjE3NDY4MTg5MDYuQ2p3S0NBand6X2JBQmhBR0Vpd0FtLVA4WWFzZUpaY1pwVHBvS0tCMjVBdkFuRjF6SVBnOGpyNUtydDN6WVVWblJ4TGF1UjlfUXE5VWtob0NxWDhRQXZEX0J3RQ..*_gcl_au*MTI5Mjk3MTA5MC4xNzQ2ODE4OTAz*_ga*MTkwMzI2ODEwLjE3MjE5MzU3MzE.*_ga_7EN8BHB8L8*czE3NDY4MTg5MDMkbzckZzAkdDE3NDY4MTg5MDMkajYwJGwwJGgw*_ga_22YNWJN8Z2*czE3NDY4MTg5MDMkbzckZzAkdDE3NDY4MTg5MDMkajYwJGwwJGgw) or banks that offer [FICO](https://www.myfico.com/) score access.\n\n::disclaimer-dialog{:dialogCopy='\"## FICO® Terms & Conditions\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO® Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide ‘credit repair’ services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\\n\\nYour FICO Score is calculated based on data from your Equifax credit report using the FICO Bankcard Score 8 model and may be different from other credit scores. FICO Score(s) are intended for and delivered only to the Primary cardmember and only if a FICO Score is available. Disclosure of this score is not available for all Citi products and Citi may discontinue displaying the score at our discretion.\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\"' buttonCopy=\"FICO Terms & Conditions\"}\n::","2025-07-16T12:00:00.000-05:00","When you’re ready to purchase a home, your credit score steps into the spotlight. This three-digit number is a key player in your mortgage approval—it helps lenders decide how much they trust you and what kind of loan terms you'll get. The higher your score, the better your chances of getting approved and receiving a favorable interest rate. Knowing what kind of credit score you need for different loan types can help you break into homeownership without breaking the bank.","What credit score do you need to buy a house?",[854,1136,1193],{"introText":1350,"text":769,"to":770,"body":1351},"Ready to buy a home?   ","Let Citi help you decide on the right loan options for you. ",{"title":1353,"description":1354},"What Credit Score Do You Need To Buy a House?","Find out the credit score needed to buy a house. Learn what score is required for a mortgage, how it impacts your loan, and tips for improving your credit.","content:articles:home-buying:what-credit-score-do-you-need-to-buy-a-house.json","What Credit Score Do You Need To Buy A House","articles/home-buying/what-credit-score-do-you-need-to-buy-a-house.json",[1204,866,1148],1785958457263]