[{"data":1,"prerenderedAt":1115},["ShallowReactive",2],{"site-navigation":3,"global-floating-disclosure":82,"jd-power-global":90,"8VNcb9qzQA":100,"6hAqXkFHAR":175,"rFmTNFegCf":233,"2f4Ulx114x":262,"faBolsE19r":290,"ab6DHaPexy":369,"LeAUgbGwRT":406,"Vw0lEbnNvj":418,"U3155RynEB":428,"e39XklTYXt":439,"disclosure-default":460,"spanish-language-disclosure":466,"J1MihCHS9H":473,"SEeE09FmpH":489,"related-articles-/home-buying/articles/mortgage-preapproval/":517},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"bottomSiteNavigationLinks":8,"mainSiteNavigationLinks":28,"footerSiteNavigationLinks":34,"socialLinks":53,"headerNavigation":64,"_id":77,"_type":78,"title":79,"_source":80,"_file":81,"_extension":78},"/settings/site-navigation","settings",false,"",[9,12,15,18,21,24],{"text":10,"to":11},"Calculators","/calculators",{"text":13,"to":14},"Rates","/rates",{"text":16,"to":17},"Buy","/home-buying",{"text":19,"to":20},"Refinance","/refinancing",{"hideFromSiteMap":6,"text":22,"to":23},"Equity","/equity",{"text":25,"to":26,"hideFromSiteMap":27},"Education & Tools","/education-and-tools",true,[29,30,31,32,33],{"text":10,"to":11},{"text":13,"to":14},{"text":16,"to":17},{"text":19,"to":20},{"text":22,"to":23},[35,38,41,44,47,50],{"text":36,"to":37},"Citi.com","https://www.citi.com",{"text":39,"to":40},"Sitemap","/sitemap",{"text":42,"to":43},"Accessibility","https://online.citi.com/US/JRS/portal/template.do?ID=Accessibility",{"text":45,"to":46},"Privacy Policy","https://online.citi.com/US/JRS/portal/template.do?ID=Privacy",{"text":48,"to":49},"Terms & Conditions","https://online.citi.com/US/nga/termsdisclaimer/termsdisclaimerhome",{"text":51,"to":52},"Do Not Sell or Share My Personal Information","https://online.citi.com/US/ag/dataprivacyhub/cpra/home",[54,57,61],{"to":55,"text":56,"icon":56},"https://www.facebook.com/citibank","Facebook",{"to":58,"text":59,"icon":60},"https://x.com/Citibank","X, formally known as Twitter","X",{"to":62,"text":63,"icon":63},"https://www.youtube.com/citi","YouTube",{"utilityNavigation":65},[66,72],{"link":67,"variant":70,"icon":71},{"text":68,"to":69},"Apply now","#dragonflyapp","primary",null,{"link":73,"variant":76},{"text":74,"to":75},"{{tracking_code}}","tel:{{tracking_code}}","primary-outline","content:settings:site-navigation.json","json","Site Navigation","content","settings/site-navigation.json",{"_path":83,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"slug":85,"content":86,"_id":87,"_type":78,"title":88,"_source":80,"_file":89,"_extension":78},"/disclosures/global-floating-disclosure","disclosures","global-floating-disclosure","This page provides general information regarding mortgage loans or home equity lines of credit. 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":172},{"title":7,"description":102},"Key insights: ",{"type":104,"children":105},"root",[106,120,140,145,167],{"type":107,"tag":108,"props":109,"children":110},"element","p",{},[111,118],{"type":107,"tag":112,"props":113,"children":114},"strong",{},[115],{"type":116,"value":117},"text","Key insights:",{"type":116,"value":119}," ",{"type":107,"tag":121,"props":122,"children":123},"ul",{},[124,130,135],{"type":107,"tag":125,"props":126,"children":127},"li",{},[128],{"type":116,"value":129},"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",{"type":107,"tag":125,"props":131,"children":132},{},[133],{"type":116,"value":134},"While it’s not a guarantee of mortgage approval, getting pre-approved is a strong move in the home-buying process",{"type":107,"tag":125,"props":136,"children":137},{},[138],{"type":116,"value":139},"Pre-approval letters are often valid for 60 to 90 days ",{"type":107,"tag":108,"props":141,"children":142},{},[143],{"type":116,"value":144},"Buying 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.",{"type":107,"tag":108,"props":146,"children":147},{},[148,150,157,159,165],{"type":116,"value":149},"That’s where a ",{"type":107,"tag":151,"props":152,"children":154},"a",{"href":153},"/home-loans/articles/how-to-get-pre-approved/",[155],{"type":116,"value":156},"mortgage pre-approval",{"type":116,"value":158}," 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 ",{"type":107,"tag":151,"props":160,"children":162},{"href":161},"/home-buying/articles/closing-on-a-house/",[163],{"type":116,"value":164},"closing",{"type":116,"value":166}," move more smoothly. Instead of guessing or hoping things work out later, you’re starting with real information that a lender has already reviewed.",{"type":107,"tag":108,"props":168,"children":169},{},[170],{"type":116,"value":171},"It 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.",{"title":7,"searchDepth":173,"depth":173,"links":174},2,[],{"data":176,"body":178,"excerpt":-1,"toc":231},{"title":7,"description":177},"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.",{"type":104,"children":179},[180,184,189,200,213,225],{"type":107,"tag":108,"props":181,"children":182},{},[183],{"type":116,"value":177},{"type":107,"tag":108,"props":185,"children":186},{},[187],{"type":116,"value":188}," 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.",{"type":107,"tag":108,"props":190,"children":191},{},[192,198],{"type":107,"tag":151,"props":193,"children":195},{"href":194},"/home-buying/articles/prequalified-vs-pre-approved/",[196],{"type":116,"value":197},"Pre-approval is often mixed up with prequalification",{"type":116,"value":199}," , 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.",{"type":107,"tag":108,"props":201,"children":202},{},[203,211],{"type":107,"tag":151,"props":204,"children":208},{"href":205,"rel":206},"https://www.citi.com/mortgage/surestart-preapproval",[207],"nofollow",[209],{"type":116,"value":210},"Citi SureStart® Pre-Approval",{"type":116,"value":212}," allows buyers to explore their borrowing range early in the process, even before touring homes.",{"type":107,"tag":214,"props":215,"children":224},"card",{":is-inline-card":216,"background-color":7,"body":217,"cta-text":218,"cta-type":219,"eyebrow-icon":7,"headline":220,"icon":221,"image-position":222,"link":205,"margin-size":223},"false","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.","Learn More","text-arrow","Ready to get pre-approved?","Application","top","small",[],{"type":107,"tag":226,"props":227,"children":230},"disclaimer-dialog",{":dialog-copy":228,"button-copy":229},"\"### \\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.\"","Citi SureStart® Terms & Conditions",[],{"title":7,"searchDepth":173,"depth":173,"links":232},[],{"data":234,"body":236,"excerpt":-1,"toc":260},{"title":7,"description":235},"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.",{"type":104,"children":237},[238,242,247],{"type":107,"tag":108,"props":239,"children":240},{},[241],{"type":116,"value":235},{"type":107,"tag":108,"props":243,"children":244},{},[245],{"type":116,"value":246},"It 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.",{"type":107,"tag":108,"props":248,"children":249},{},[250,252,258],{"type":116,"value":251},"Pre-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 ",{"type":107,"tag":151,"props":253,"children":255},{"href":254},"/home-loans/articles/what-is-a-mortgage/",[256],{"type":116,"value":257},"mortgage",{"type":116,"value":259}," underwriting process can move more efficiently after you’re under contract, providing there aren’t significant changes from the pre-approval.",{"title":7,"searchDepth":173,"depth":173,"links":261},[],{"data":263,"body":265,"excerpt":-1,"toc":288},{"title":7,"description":264},"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. ",{"type":104,"children":266},[267,271,276,283],{"type":107,"tag":108,"props":268,"children":269},{},[270],{"type":116,"value":264},{"type":107,"tag":108,"props":272,"children":273},{},[274],{"type":116,"value":275},"Here are some factors lenders consider:",{"type":107,"tag":277,"props":278,"children":282},"inline-table",{":headers":279,":rows":280,"table-layout":281},"[{\"value\":\"\"}]","[{\"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\"}}]","basic",[],{"type":107,"tag":108,"props":284,"children":285},{},[286],{"type":116,"value":287},"Taken 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":7,"searchDepth":173,"depth":173,"links":289},[],{"data":291,"body":293,"excerpt":-1,"toc":367},{"title":7,"description":292},"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. ",{"type":104,"children":294},[295,299,304,309,314],{"type":107,"tag":108,"props":296,"children":297},{},[298],{"type":116,"value":292},{"type":107,"tag":108,"props":300,"children":301},{},[302],{"type":116,"value":303}," 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. ",{"type":107,"tag":108,"props":305,"children":306},{},[307],{"type":116,"value":308},"How to improve your odds of pre-approval ",{"type":107,"tag":108,"props":310,"children":311},{},[312],{"type":116,"value":313},"If you want to strengthen your mortgage pre-approval, a few small, proactive steps can make a meaningful difference:",{"type":107,"tag":121,"props":315,"children":316},{},[317,327,337,347,357],{"type":107,"tag":125,"props":318,"children":319},{},[320,325],{"type":107,"tag":112,"props":321,"children":322},{},[323],{"type":116,"value":324},"Pay down high-interest debt.",{"type":116,"value":326}," Reducing balances can help lower your debt-to-income ratio, which shows lenders you have more room in your monthly budget.",{"type":107,"tag":125,"props":328,"children":329},{},[330,335],{"type":107,"tag":112,"props":331,"children":332},{},[333],{"type":116,"value":334},"Keep your credit stable.",{"type":116,"value":336}," 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.",{"type":107,"tag":125,"props":338,"children":339},{},[340,345],{"type":107,"tag":112,"props":341,"children":342},{},[343],{"type":116,"value":344},"Build up your savings where possible.",{"type":116,"value":346}," Stronger savings can show lenders that you have financial backup beyond your regular income.",{"type":107,"tag":125,"props":348,"children":349},{},[350,355],{"type":107,"tag":112,"props":351,"children":352},{},[353],{"type":116,"value":354},"Review your credit report for errors.",{"type":116,"value":356}," Catching and correcting mistakes early helps ensure lenders are seeing accurate information.",{"type":107,"tag":125,"props":358,"children":359},{},[360,365],{"type":107,"tag":112,"props":361,"children":362},{},[363],{"type":116,"value":364},"Keep your employment situation steady.",{"type":116,"value":366}," Avoiding major job changes during this stage can help keep the process moving smoothly.",{"title":7,"searchDepth":173,"depth":173,"links":368},[],{"data":370,"body":372,"excerpt":-1,"toc":404},{"title":7,"description":371},"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 also helps them tailor listings to your range and position your offer more strongly when you find the right home.",{"type":104,"children":373},[374,387,392],{"type":107,"tag":108,"props":375,"children":376},{},[377,379,385],{"type":116,"value":378},"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 ",{"type":107,"tag":151,"props":380,"children":382},{"href":381},"/home-buying/articles/what-is-a-real-estate-agent/",[383],{"type":116,"value":384},"real estate agent",{"type":116,"value":386}," also helps them tailor listings to your range and position your offer more strongly when you find the right home.",{"type":107,"tag":108,"props":388,"children":389},{},[390],{"type":116,"value":391},"As 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.",{"type":107,"tag":108,"props":393,"children":394},{},[395,397,402],{"type":116,"value":396},"From pre-approval through ",{"type":107,"tag":151,"props":398,"children":400},{"href":399},"/tags/closing/",[401],{"type":116,"value":164},{"type":116,"value":403},", 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":7,"searchDepth":173,"depth":173,"links":405},[],{"data":407,"body":408,"excerpt":-1,"toc":416},{"title":7,"description":7},{"type":104,"children":409},[410],{"type":107,"tag":411,"props":412,"children":415},"faq",{":faqs":413,"headline":414},"[{\"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.\"}]","Mortgage pre-approval FAQs",[],{"title":7,"searchDepth":173,"depth":173,"links":417},[],{"data":419,"body":420,"toc":426},{"title":7,"description":86},{"type":104,"children":421},[422],{"type":107,"tag":108,"props":423,"children":424},{},[425],{"type":116,"value":86},{"title":7,"searchDepth":173,"depth":173,"links":427},[],{"data":429,"body":431,"toc":437},{"title":7,"description":430},"Citi is #1 in Customer Satisfaction with Mortgage Origination - J.D. Power",{"type":104,"children":432},[433],{"type":107,"tag":108,"props":434,"children":435},{},[436],{"type":116,"value":430},{"title":7,"searchDepth":173,"depth":173,"links":438},[],{"data":440,"body":442,"toc":458},{"title":7,"description":441},"For J.D. Power 2025 award information, visit jdpower.com/awards.",{"type":104,"children":443},[444],{"type":107,"tag":108,"props":445,"children":446},{},[447,449,456],{"type":116,"value":448},"For J.D. Power 2025 award information, visit ",{"type":107,"tag":151,"props":450,"children":453},{"href":451,"rel":452},"https://www.jdpower.com/business/awards",[207],[454],{"type":116,"value":455},"jdpower.com/awards",{"type":116,"value":457},".",{"title":7,"searchDepth":173,"depth":173,"links":459},[],{"_path":461,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"slug":99,"content":462,"_id":463,"_type":78,"title":464,"_source":80,"_file":465,"_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":467,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"content":468,"slug":469,"_id":470,"_type":78,"title":471,"_source":80,"_file":472,"_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":474,"body":476,"toc":487},{"title":7,"description":475},"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":477},[478,482],{"type":107,"tag":108,"props":479,"children":480},{},[481],{"type":116,"value":475},{"type":107,"tag":108,"props":483,"children":484},{},[485],{"type":116,"value":486},"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":173,"depth":173,"links":488},[],{"data":490,"body":492,"toc":515},{"title":7,"description":491},"†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":493},[494,505],{"type":107,"tag":108,"props":495,"children":496},{},[497,503],{"type":107,"tag":498,"props":499,"children":500},"sup",{},[501],{"type":116,"value":502},"†",{"type":116,"value":504},"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":506,"children":507},{},[508],{"type":107,"tag":509,"props":510,"children":512},"span",{"lang":511},"es",[513],{"type":116,"value":514},"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":173,"depth":173,"links":516},[],[518,576,657,712,768,815,871,920,980,1028,1067],{"_path":519,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":521,"l1":520,"linkNav":522,"heroMedia":526,"teaserImage":529,"slug":531,"sections":532,"date":548,"subheadline":549,"headline":550,"isFeatured":6,"tags":551,"link":554,"seo":557,"hasSectionNavigation":27,"_id":560,"_type":78,"title":561,"_source":80,"_file":562,"_extension":78,"tagsDetails":563},"/articles/home-buying/mortgage-insurance","home-buying",7,{"introText":523,"text":524,"to":525},"Ready for the next step?","Connect with a Citi Specialist","/contact",{"landscape":527,"portrait":528},"/media/article-mortgage-insurance-mobile-768x512.jpg","/media/article-mortgage-insurance-desktop-520x638.jpg",{"src":530},"/media/article-mortgage-insurance-teaser-500x500.jpg","mortgage-insurance",[533,536,539,542,545],{"title":534,"content":535},"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":537,"content":538},"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":540,"content":541},"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":543,"content":544},"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":546,"content":547},"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?",[552,553,520],"insurance","first-time-buyer",{"introText":555,"text":524,"to":525,"body":556},"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":558,"description":559},"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",[564,568,572],{"label":565,"slug":553,"seo":566},"First Time Buyer",{"description":567},"Learn more about first time buyer with helpful articles, tools, and guides to support your homeownership journey.",{"label":569,"slug":520,"seo":570},"Home Buying",{"description":571},"Learn more about home buying with helpful articles, tools, and guides to support your homeownership journey.",{"label":573,"slug":552,"seo":574},"Insurance",{"description":575},"Learn more about insurance with helpful articles, tools, and guides to support your homeownership journey.",{"_path":577,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":521,"l1":520,"linkNav":578,"heroMedia":580,"relatedArticlesConfig":583,"teaserImage":586,"slug":588,"sections":589,"date":643,"subheadline":644,"headline":645,"isFeatured":6,"tags":646,"link":647,"seo":650,"hasSectionNavigation":27,"_id":653,"_type":78,"title":654,"_source":80,"_file":655,"_extension":78,"tagsDetails":656},"/articles/home-buying/home-buying-1",{"introText":579,"to":525,"text":524},"Ready for the Next Step?",{"landscape":581,"portrait":582},"/media/article-10-questions-to-ask-mobile-768x512.jpg","/media/article-10-questions-to-ask-desktop-520x638.jpg",{"headline":584,"body":585},"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":587},"/media/article-10-questions-to-ask-teaser-500x500.jpg","how-to-buy-a-home",[590,593,597,600,604,608,612,614,618,622,627,631,635,639],{"title":591,"content":592},"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":594,"eyebrowBullet":27,"content":595,"headlineUrl":596},"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":598,"title":599,"hideTitle":27},"\n\n![](/media/couple-land.jpg)","Image",{"title":601,"eyebrow":602,"eyebrowBullet":27,"content":603},"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":605,"eyebrow":606,"eyebrowBullet":27,"content":607},"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":609,"eyebrowBullet":27,"eyebrow":610,"content":611,"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":599,"hideTitle":27,"content":613},"\n\n![](/media/article-img-1200-.jpg)",{"title":615,"eyebrowBullet":27,"eyebrow":616,"content":617},"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":619,"eyebrow":620,"eyebrowBullet":27,"content":621},"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":623,"content":624,"eyebrowBullet":27,"eyebrow":625,"headlineUrl":626},"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":628,"eyebrow":629,"eyebrowBullet":27,"content":630},"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":632,"eyebrow":633,"eyebrowBullet":27,"content":634},"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":636,"eyebrow":637,"eyebrowBullet":27,"content":638},"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":640,"eyebrowBullet":27,"eyebrow":641,"content":642,"headlineUrl":161},"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.","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",[520],{"introText":648,"body":649,"text":524,"to":525},"Need help applying for a mortgage?","We'll guide you through the process every step of the way.",{"title":651,"description":652},"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",[568],{"_path":658,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":659,"l1":520,"linkNav":660,"heroMedia":662,"teaserImage":665,"slug":667,"sections":668,"date":687,"subheadline":688,"headline":689,"dateModified":690,"isFeatured":6,"tags":691,"link":694,"seo":697,"hasSectionNavigation":27,"_id":700,"_type":78,"title":701,"_source":80,"_file":702,"_extension":78,"tagsDetails":703},"/articles/home-buying/pay-off-debt-or-save-for-a-house",6,{"introText":661,"text":524,"to":525},"Ready for the next step? ",{"landscape":663,"portrait":664},"/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":666},"/media/should-i-pay-off-debt-or-should-i-save-for-a-house-teaser-500x500.jpg","pay-off-debt-or-save-for-a-house",[669,672,675,678,681,684],{"title":670,"content":671},"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":673,"content":674},"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":676,"content":677},"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":679,"content":680},"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":682,"content":683},"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":685,"hideTitle":27,"content":686},"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.","Should I pay off debt or save for a house?","2026-01-08T06:33:00.000Z",[520,692,693],"credit-score","down-payments",{"introText":695,"body":696,"text":524,"to":525},"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":698,"description":699},"Should You Pay Off Debt or Save for a House? | Mortgage.com","Should you pay off debt or save for a house? Learn how lenders view debt, income, savings and credit scores. Discover 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",[568,704,708],{"label":705,"slug":692,"seo":706},"Credit Score",{"description":707},"Understand how your credit score impacts your ability to qualify for a home loan and how to improve it.",{"label":709,"slug":693,"seo":710},"Down Payments",{"description":711},"Learn more about down payments with helpful articles, tools, and guides to support your homeownership journey.",{"_path":713,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":714,"l1":520,"linkNav":715,"heroMedia":716,"teaserImage":719,"slug":721,"sections":722,"date":744,"subheadline":745,"headline":746,"isFeatured":6,"tags":747,"link":750,"seo":753,"hasSectionNavigation":27,"_id":756,"_type":78,"title":757,"_source":80,"_file":758,"_extension":78,"tagsDetails":759},"/articles/home-buying/how-to-buy-a-house-with-low-income",3,{"introText":523,"text":524,"to":525},{"landscape":717,"portrait":718},"/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":720},"/media/how-to-buy-a-house-w-low-income-teaser-500x500.jpg","how-to-buy-a-house-with-low-income",[723,726,729,732,735,738,741],{"title":724,"content":725},"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":727,"content":728},"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":730,"content":731},"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":733,"content":734},"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":736,"content":737},"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":739,"content":740},"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":742,"hideTitle":27,"content":743},"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",[520,748,749],"loan-types","budget-planning",{"introText":751,"body":752,"text":524,"to":525},"Need help navigating low-income loan options?","Let’s talk it through together.",{"title":754,"description":755},"Buying Your Home On a Low Income | Citi Mortgage","Learn how to buy a home with low income, including loan options, programs, and tips that can help make homeownership possible.","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",[760,764,568],{"label":761,"slug":749,"seo":762},"Budget Planning",{"description":763},"Learn more about budget planning with helpful articles, tools, and guides to support your homeownership journey.",{"label":765,"slug":748,"seo":766},"Loan Types",{"description":767},"Explore resources about loan types—including types, requirements, and how to choose the right mortgage option.",{"_path":769,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":770,"l1":520,"linkNav":771,"heroMedia":772,"teaserImage":775,"slug":777,"disclosure":99,"sections":778,"date":800,"subheadline":801,"headline":802,"dateModified":803,"isFeatured":6,"tags":804,"link":805,"seo":808,"hasSectionNavigation":27,"_id":811,"_type":78,"title":812,"_source":80,"_file":813,"_extension":78,"tagsDetails":814},"/articles/home-buying/what-is-cost-of-living",5,{"introText":523,"text":524,"to":525},{"landscape":773,"portrait":774},"/media/cost-of-living-mobile-768x512.jpg","/media/cost-of-living-desktop-520x638.jpg",{"src":776},"/media/cost-of-living-teaser-500x500.jpg","what-is-cost-of-living",[779,782,785,788,791,794,797],{"title":780,"content":781},"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":783,"content":784},"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":786,"content":787},"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":789,"content":790},"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":792,"content":793},"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":795,"content":796},"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":798,"content":799,"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",[520,749],{"introText":806,"body":807,"text":524,"to":525},"Planning a Move?","We can help you explore options that fit your budget.",{"title":809,"description":810},"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",[760,568],{"_path":816,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":817,"l1":520,"linkNav":818,"heroMedia":819,"teaserImage":822,"slug":824,"disclosure":99,"sections":825,"date":853,"subheadline":854,"headline":855,"isFeatured":27,"tags":856,"link":858,"seo":860,"hasSectionNavigation":27,"_id":863,"_type":78,"title":864,"_source":80,"_file":865,"_extension":78,"tagsDetails":866},"/articles/home-buying/first-time-home-buyer",9,{"introText":523,"text":524,"to":525},{"landscape":820,"portrait":821},"/media/article-first-time-home-buyer-mobile-768x512.jpg","/media/article-first-time-home-buyer-mobile-desktop-520x638.jpg",{"src":823},"/media/article-first-time-home-buyer-mobile-teaser-500x500.jpg","first-time-home-buyer",[826,829,832,835,838,841,844,847,850],{"title":827,"hideTitle":27,"content":828},"Disclaimer","Disclaimer: Citi may have different eligibility criteria and/or product offerings than those mentioned on mortgage.com.",{"title":830,"content":831},"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 principal residence in the past three years. A principal residence is the home where you live most of the time—not a vacation or rental property.\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\nThanks to these broader definitions, more people are eligible for first-time home buyer programs, grants and loans than you might expect.",{"title":833,"content":834},"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 score 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 budgeting, mortgage basics 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\nThe goal of these programs is to make homeownership feel possible—so you can focus on finding the right place to live, not just on how to pay for it.",{"title":836,"content":837},"How do I qualify for a first-time buyer program?","You don’t have to be a total newcomer to qualify as a first-time home buyer. In fact, many programs define a first-time buyer as someone who hasn’t owned a home in the past three years. So, even if you’ve owned property before, you may still be eligible if it’s been a while.\n\nOther situations that may qualify you include owning a mobile or temporary property that wasn’t attached to a permanent foundation, or having owned a property that didn’t meet safety regulations and required repairs that exceeded its value.\n\nWhile each program has its own requirements, two major factors typically come into play:\n\n1. 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. While exact limits vary, many programs prefer a DTI of 43% or lower.\n2. [Your credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/): Your credit score helps determine your eligibility and the loan terms you qualify for. Higher scores unlock better interest rates and more loan options, while lower scores may limit your choices or require extra documentation. Minimum score requirements vary by loan type (FHA, VA, USDA, etc.), so it’s a good idea to check what your score needs to be for the program you're targeting.\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. It’s important to check that the program you’re interested in applies to your location.\n* **Education courses:** You may need to complete home buyer education classes.\n\nUnderstanding how these criteria apply to your situation can help you narrow down the best first-time buyer options for your needs.",{"title":839,"content":840},"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](/home-loans/articles/what-is-a-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 up the property ladder. 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\\nHomeRun is available in Citibank assessment areas and specific census tracts in Arlington, VA, Atlanta, GA, Austin, TX, Cambridge, MA, Dallas, TX, Denver, CO, Frederick, MD, Houston, TX, Marietta, GA, Newark, NJ, New York, NY, Philadelphia, PA, San Jose, CA and Washington, D.C. Metropolitan Statistical Areas 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 $806,500. Certain condo and co-op projects may be subject to lower LTVs. Single-family homes in certain high-cost markets with loan amounts between $806,501 and $1,209,750 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 $1,032,650, or 85% up to $1,548,975 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\nWhen we say \"government-backed\" programs, we're talking about three main types:\n\n* Government-insured: These loans are insured by a government agency to protect lenders if the borrower defaults. A common example is the [Federal Housing Administration (FHA) loan](/home-loans/fha-loan/), designed to help first-time buyers qualify for a low down payment.\n* Government-sponsored entities: Fannie Mae and Freddie Mac help keep the mortgage market affordable and stable by buying loans from lenders and selling them as securities.\n* Government-guaranteed entities: [VA loans](/home-loans/va-loan/), for example, are guaranteed by the government, which ensures the lender is covered if the borrower fails to repay. VA loans are available to active-duty service members, veterans and their surviving spouses.\n\n### State & local programs\n\nMany states and localities offer programs such as down payment assistance, [competitive mortgage rates](/rates/) and tax credits tailored to make homeownership more accessible. Sometimes, you can even combine these offerings with federal programs to maximize your benefits. \n\n### Charitable, nonprofit & other programs\n\nIn addition to government and institutional offerings, there are also charitable and nonprofit programs that provide grants and assistance, often targeted at specific communities. These can be hidden gems for first-time buyers, especially if you’re part of a local initiative or employee program.",{"title":842,"content":843},"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.\n\n### FHA Loans\n\n[FHA loans](/home-loans/fha-loan/) let you put down as little as 3.5% if your [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/) is at least 580. Plus, they come with a unique perk: your mortgage is [assumable](/home-buying/articles/what-is-an-assumable-mortgage/). That means if you put your home back on the market, a buyer can take over your loan with the same interest rate, making it a great selling point. But keep in mind, FHA loans come with mandatory [mortgage insurance premiums (MIP)](/home-buying/articles/mortgage-insurance/) that may weigh down your monthly payment. Lenders, like Citi, have stricter requirements for the minimum credit score. In addition, there are restrictions and requirements for a buyer to assume an FHA mortgage.   \n\n### Conventional 97 Mortgage Loans\n\nFannie Mae and Freddie Mac have their own low-down-payment alternatives to FHA loans. As the name hints, a conventional 97 loan lets you put down 3% of your own funds and borrow 97% of the home’s value from a lender. To land 3% down, you must have a [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/) of at least 620, pay for [private mortgage insurance](/home-buying/articles/pmi-home-loan/) and take a homeownership education course.\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. You’ll need to meet VA eligibility guidelines, but for those who qualify, VA loans can be a cost-saving option.\n\n### USDA Loans\n\n[US Department of Agriculture loans](/home-loans/usda-loan/) are designed for buyers in eligible rural and suburban areas, offering no down payment options and lower mortgage insurance costs. Income and location limits apply, making them ideal for those looking outside major metro areas. \n\n### Citi HomeRun Mortgage\n\nCiti’s HomeRun Mortgage is built 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® and Home Possible® loans\n\n[](/home-loans/home-ready-home-possible)These programs from [Fannie Mae and Freddie Mac](/home-loans/home-ready-home-possible/) cater to low- to moderate-income buyers. Requiring just 3% down and offering the ability to use gift funds or grants, they’re especially helpful if you’re buying in a high-cost area or earning less than the area’s median income.",{"title":845,"content":846},"Are there first-time buyer grants by state?","Many states offer first-time home buyer grants 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?utm_source=chatgpt.com)\n* [](https://www.tdhca.texas.gov/programs/texas-bootstrap-loan-program)Florida: [Florida Assist and HFA Preferred programs](https://www.floridahousing.org/programs/homebuyer-overview-page?utm_source=chatgpt.com)\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: [HomeFirst Down Payment Assistance](https://www.nyc.gov/site/hpd/services-and-information/homefirst-down-payment-assistance-program.page)\n* Illinois: [IHDAccess Forgivable](https://www.inb.com/loans/mortgages/ihdaccess-forgivable-mortgage-loan/) and [SmartBuy programs](https://www.ihdamortgage.org/smartbuy)\n\nTo get the most accurate info, visit your state’s Housing Finance Authority website. 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":848,"content":849},"Charitable, nonprofit & other first-time home buyer programs","Plenty of charitable, nonprofit and third-party groups want to see homeownership thrive in their community. We’ll cover a few standout programs, but 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 than the local median income.\n\n### Neighborhood Assistance Corporation of America\n\nThis HUD-certified nonprofit helps first-time home buyers secure 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. Policies will vary, so you’ll have to read up on your company benefits. Also, be on the lookout for rules around income limits and time on the job.\n\n### Loans and grants for student borrowers\n\nMany programs cater to students with limited savings and lots of debt. Some schools even offer grants, scholarships or fund-matching to cover upfront costs. For instance, Ohio offers a Grants for Grads program that provides up to 5% down payment support for recent students. Check with your housing department or financial aid office to find out what's possible with your alma mater.",{"title":851,"hideTitle":27,"content":852},"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 principal residence in the past three 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), if applicable, proof of previous homeownership or housing history. 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 documentation. Staying in close contact with your lender or housing counselor can help you stay on track.\"}]'}\n::","2025-07-23T10:00:00.000-05:00","First-time home buyer programs, grants and loans can make the path to homeownership more affordable than you might expect. From down payment assistance to special loan programs with flexible terms, there are numerous resources designed to help first-time buyers make their dream of homeownership a reality.\n\nExplore your [state’s first-time home buyer programs](https://www.hud.gov/states) and learn how to qualify step by step.","First-time home buyers: your guide to programs, grants and loans",[553,857,520],"real-estate-process",{"introText":859,"text":524,"to":525,"body":752},"Need help finding the right program for you? ",{"title":861,"description":862},"First-Time Home Buyer Programs for You | Citi Mortgage","Learn what it means to be a first-time home buyer, explore loan options and grants, and get tips to qualify for your first mortgage.","content:articles:home-buying:first-time-home-buyer.json","First Time Home Buyer","articles/home-buying/first-time-home-buyer.json",[564,867,568],{"label":868,"slug":857,"seo":869},"Real Estate Process",{"description":870},"Learn more about real estate process with helpful articles, tools, and guides to support your homeownership journey.",{"_path":872,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":817,"l1":520,"linkNav":873,"heroMedia":874,"teaserImage":877,"outro":7,"slug":879,"sections":880,"date":906,"subheadline":907,"headline":908,"isFeatured":6,"tags":909,"link":910,"seo":913,"hasSectionNavigation":27,"_id":916,"_type":78,"title":917,"_source":80,"_file":918,"_extension":78,"tagsDetails":919},"/articles/home-buying/what-credit-score-do-you-need-to-buy-a-house",{"introText":523,"text":524,"to":525},{"landscape":875,"portrait":876},"/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":878},"/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",[881,882,885,888,891,894,897,900,903],{"title":827,"hideTitle":27,"content":828},{"title":883,"content":884},"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":886,"content":887},"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":889,"content":890},"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":892,"content":893},"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":895,"content":896},"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":898,"content":899},"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":901,"content":902},"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":904,"content":905},"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?",[553,692,749],{"introText":911,"text":524,"to":525,"body":912},"Ready to buy a home?   ","Let Citi help you decide on the right loan options for you. ",{"title":914,"description":915},"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",[760,564,704],{"_path":921,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":521,"l1":520,"linkNav":922,"heroMedia":923,"teaserImage":924,"outro":7,"slug":925,"sections":926,"date":966,"subheadline":967,"headline":968,"isFeatured":6,"tags":969,"link":970,"seo":973,"hasSectionNavigation":27,"_id":976,"_type":78,"title":977,"_source":80,"_file":978,"_extension":78,"tagsDetails":979},"/articles/home-buying/10-questions-to-ask-a-realtor",{"introText":523,"text":524},{"landscape":581,"portrait":582},{"src":587},"10-questions-to-ask-when-buying-a-house",[927,930,933,936,939,942,945,948,951,954,957,960,963],{"title":928,"content":929},"Why it’s important to ask the right questions before you buy","Whether you’re [buying your very first home](/home-buying/articles/first-time-home-buyer/), looking for more space or ready to downsize, purchasing a home is a huge milestone. And for many, it’s one of the biggest financial decisions they’ll ever make. However, a surprising 82% of recent buyers say they have at least one regret. The most common one? Wishing they hadn’t taken on a home that needs more upkeep than they bargained for. If you want to sidestep that kind of frustration and feel confident about your investment, it all starts with asking a real estate professional some important questions before signing on the dotted line.",{"title":931,"content":932},"10 Must-ask questions when buying a home","Here are ten essential real estate questions you’ll want to ask as you move through the home buying process.",{"title":934,"content":935},"1.  Is the home in a high-risk natural disaster zone?","Earthquakes, tornadoes, floodplains––no thanks. A home's charm can be irresistible, but don't let the curb appeal blind you to potential risks. That idyllic farmhouse might be in tornado territory, and that beach house could be in hurricane alley. These risks aren’t just about safety; they can drive up insurance costs and impact your long-term budget. If you’re planning to stay long-term or pass the home down to future generations, make sure it’s built to handle whatever nature throws at it. Do your homework: look into historical data, assess structural resilience and secure the right [insurance](/home-buying/articles/what-is-homeowners-insurance/). Peace of mind starts with preparation—and ends (hopefully) under clear blue skies.",{"title":937,"content":938},"2. Are there any health or safety hazards (e.g., mold, asbestos)?","As you dream of crown molding, don’t forget the less appealing kind—toxic mold that lurks behind walls. Like lead paint and asbestos, these dangers can slip past untrained eyes. Sometimes, the owner can be completely unaware of hazards in their home, which is where the all-important [home inspection](/home-buying/articles/what-is-a-home-inspection) comes in. A must-do for anyone buying a new home, a home inspection can help reveal any hidden dangers that may lie beneath the surface.  \n\nBeyond wellness concerns, the cost of fixing safety hazards can be steep. For example, removing lead paint can set you back $8 to $15 per square foot, asbestos removal ranges from $1,200 to $3,000 and radon mitigation can cost upwards of $1,500. During inspection, make sure to ask about structural issues, pest infestations and contaminated water sources as well.",{"title":940,"content":941},"3. What’s the age and condition of the roof?","Your roof isn’t just a finishing touch—it protects you and your belongings from the elements. Since roof replacements can be a huge financial hit, you’ll want to inquire about its age and condition. Most roofs do the job for 25 years, give or take. Finding a newish roof on a home you love means less worry, added value and shelter from the storm. If the one you're eyeing is getting up there, decide if your budget can handle a replacement. Hint: We’re talking $15,000 to $30,000 on average for a brand-new roof.\n\nFor an extra layer of security, review seller disclosures and inspection reports for any red flags. Spotting issues early not only prevents future headaches—it gives you leverage when it’s time to [negotiating repairs](/home-buying/articles/how-to-negotiate-repairs-after-inspection) with the seller.",{"title":943,"content":944},"4. Are all major systems (HVAC, electrical, plumbing) in good condition? ","A good home inspector will give all major systems—heating, cooling, plumbing and electrical—a thorough exam on your behalf. These hidden heroes keep your home cozy, bright and humming along, turning basic structures into true sanctuaries. Breakdowns can also throw a wrench in your budget. For instance, an HVAC replacement can run you anywhere from $5,000 to $12,000 depending on the system and home, so it’s wise to have a thorough inspection of all major systems before you commit.\n\nAnd remember, spotting problems isn’t always a deal-breaker. It can give you the upper hand when it’s time to [make an offer](/home-buying/articles/how-to-make-an-offer). Doing your homework puts the control in your hands.",{"title":946,"content":947},"5. What is the monthly cost of utilities?","Your list of questions to ask a realtor may not include utility bills, but they should. Asking for a full year of utility bill history can give you a realistic picture of what you’ll be spending each month. This isn't just about budgeting; it's about assessing the home's efficiency and sustainability. Knowing how much power and water the home uses can help you plan smarter, save money and reduce your environmental impact.\n\nUtility costs can also reveal more than just monthly spend. High bills could point to outdated systems or poor insulation. Low bills can mean the owner made some valuable upgrades. This info is useful for shaping your budget, forecasting future maintenance and even informing an offer on the house.",{"title":949,"content":950},"6. Which appliances are included, and what’s their condition?","Don't let appliances fly under the radar. Is a modern fridge, stove, dishwasher, washer and dryer included? If not, replacing them can be pricey. A fancy fridge or new washer could each run you thousands, so ask [your realtor](/home-buying/articles/do-you-need-a-realtor-to-buy-a-house) for specifics. Refrigerators can run for about 14 years; stoves typically fire up for around 15. If they're nearing the end of their lifespan, you might need to budget for new ones.\n\nSafety comes into play here, too. Old gas stoves can leak if their seals are worn or their connections are faulty, posing serious health risks like carbon monoxide poisoning. Believe it or not, aging clothes dryers can become a fire hazard, all thanks to accumulated lint. Armed with this knowledge, you’ll be well-equipped to [negotiate your offer](/home-buying/articles/how-to-negotiate-repairs-after-inspection). Sellers may knock down the price or throw in a credit so you can pick out new appliances of your own.",{"title":952,"content":953},"7. Why is the seller moving?","Understanding the seller's \"why\" can be a major advantage. If they're in a hurry to sell because of a new job or family situation, they might be more open to a speedy transaction. This is your chance to present an offer that’s too good to pass up. If the property has been on the market for some time, the seller might be thrilled to negotiate. Alternatively, if the seller is trying to avoid foreclosure, they could be looking for a [short sale](/home-buying/articles/what-is-a-short-sale) where there are deals to be made—but make sure you’re working with an experienced realtor and be prepared for more hoops than a standard sale, too.",{"title":955,"content":956},"8. Were additions or renovations permitted and up to code?","Next up: home renovations. Make sure any updates were done legally, with proper permits and up to code. Well-executed renos—like a smart basement conversion—can add serious value and appeal.\n\nSome renovations may affect your property taxes. Done poorly, they can lead to costly issues down the line, like mold or structural damage. Whenever possible, find out who did the work. Licensed, experienced contractors are more likely to follow regulations. Always ask for details and check online reviews. If the renovations were recent, a home warranty might also be worth considering, as it could help cover systems or appliances affected by the updates.",{"title":958,"content":959},"9. How do local home prices compare?","Why worry about the price of other people’s property? Well, knowing what they paid can be your secret weapon in the house-hunting game. These local prices are usually referred to as [real estate comps](/home-buying/articles/real-estate-comps). They can help you figure out a fair offer, before an official [home appraisal](/home-buying/articles/home-appraisal), and provide an idea of how much the property might appreciate over time—one of ownership’s biggest advantages.\n\nThis detective work isn't just about the stats; it's about getting a sense of the neighborhood's vibe and overall economic health. Seeing how the home stacks up against others can really boost your confidence about making an offer.",{"title":961,"content":962},"10. How long has the home been on the market?","So, how long has this gem been on the market, eagerly awaiting its perfect match? This detail can reveal quite a bit. If it's been a while, you might have leverage to strike a sweeter deal. Maybe the price is a tad steep, or the home has a quirky charm that's not everyone's cup of tea.\n\nIf it just popped up on the market and checks off loads of boxes, you might need to act swiftly or craft an offer that really stands out. Either way, knowing how long the house has been listed gives you a peek into the seller's mindset, arming you with clues to plan your next move.",{"title":964,"content":965},"Use these questions to negotiate with confidence","The groundwork you lay now can lead you to the right home, reduce your stress and save you a pretty penny. You're well equipped for the house hunt now. Go out there and ace it.","2025-06-09T16:38:00.000Z","So, you’re buying a house and you’re bursting with questions. Perfect! Jump into this quest with all the curiosity of a good detective. Investigate the area, scrutinize the property and [partner with a realtor](/home-buying/articles/what-is-a-real-estate-agent) who really knows their stuff, and can answer all your questions.","10 Essential questions to ask a real estate agent",[553,857,520],{"introText":971,"text":524,"to":525,"body":972},"Ready to make an offer?","We'll be right by your side.",{"title":974,"description":975},"10 Essential Questions To Ask When Buying A House","Learn key questions to ask when buying a house to make a smart investment. Get insights on inspections, neighborhoods, and more for a confident purchase.","content:articles:home-buying:10-questions-to-ask-a-realtor.json","10 Questions To Ask A Realtor","articles/home-buying/10-questions-to-ask-a-realtor.json",[564,867,568],{"_path":981,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":659,"l1":520,"linkNav":982,"heroMedia":983,"teaserImage":986,"slug":988,"disclosure":99,"sections":989,"date":1008,"subheadline":1009,"headline":1010,"dateModified":1011,"isFeatured":6,"tags":1012,"link":1014,"seo":1017,"hasSectionNavigation":27,"_id":1020,"_type":78,"title":1021,"_source":80,"_file":1022,"_extension":78,"tagsDetails":1023},"/articles/home-buying/are-property-taxes-included-in-mortgage-payment",{"introText":523,"text":524,"to":525},{"landscape":984,"portrait":985},"/media/article-property-taxes-mobile-768x512.jpg","/media/article-property-taxes-desktop-520x638.jpg",{"src":987},"/media/article-property-taxes-teaser-500x500.jpg","are-property-taxes-included-in-mortgage-payment",[990,993,996,999,1002,1005],{"title":991,"content":992},"What are property taxes?","In many cases, property taxes are included in your monthly mortgage payment, but not always. Whether you’re buying a home or reviewing your current bill, it’s important to know what’s bundled together. Keep reading to learn how property taxes work, when lenders include them in mortgage payments and how to check what’s included in your monthly payment\n\n\nWhen you become a homeowner, you start paying fees known as property taxes to your state and local governments. Property taxes fund essential services that help your community thrive, such as maintaining schools, roads and public safety.\n\n### How are property taxes calculated?\n\nProperty taxes aren’t a flat fee. They're determined based on your home’s value and the tax rates where you live. The amount you pay in property taxes can vary greatly from state to state, and even county by county. To put things in perspective, in 2023, Hawaii had the lowest effective tax rate of 0.32% and Illinois had the highest of 1.83%. Quite the range, right?\n\nAfter assessing your property value and baseline tax rates in the area, the local government will assign a tax rate to your home. You can use our [mortgage calculator](/calculators/monthly/) and property tax estimate to get a feel for your monthly mortgage breakdown. Keep in mind that rates can vary each year due to local tax assessments and any changes in your property’s value.\n\n::callout{title=\"Property taxes in action\" body=\"If your home is valued at $300,000 and the tax rate where you live is 1.5%, your annual property tax would net out at $4,500.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::",{"title":994,"content":995},"Are property taxes included in mortgage payments?","The lender may include property taxes in your monthly mortgage payment, but that isn’t always the case. Let’s take a look at both methods.\n\n### Paying property taxes monthly with your mortgage\n\nWhen property taxes are rolled into your mortgage, lenders typically collect the money through an escrow account, then pay the bill for you when it's due. To determine how much money to put into [escrow ](/home-buying/articles/what-is-escrow/)for taxes, the lender will usually estimate your annual property tax and [homeowners insurance ](/home-buying/articles/what-is-homeowners-insurance/)costs, then divide it by 12 to determine the monthly amount. This cost is added to your principal and interest fees, resulting in a single, predictable mortgage payment each month.\n\nIn some states, an escrow account is called an impound account. Not all lenders and loan programs require an escrow account, but some make it mandatory. If you have a [conventional mortgage](/home-loans/conventional-loan/), most lenders require an escrow account, especially if your down payment is less than 20%. Many government-backed loans also require escrow accounts, including [FHA ](/home-loans/fha-loan/)and [VA ](/home-loans/va-loan/)loans. This ensures that your taxes and insurance bill are paid on time and in full.\n\n::tip{icon=\"Bulb\" text=\"If you’re financially savvy and your lender doesn’t require an escrow account, you may choose a “DIY” solution. Instead of using an escrow account, you can set up your own interest-earning account to hold your property tax and homeowners insurance funds.\" title=\"Pro Tip\"}\n::\n\n### Can you pay property taxes separately?\n\nSome home loans (usually those with higher down payments) may not require an escrow account. When escrow isn’t required, you’re responsible for paying property taxes on your own and making sure payments are submitted on time and in full. Managing these payments yourself adds more financial responsibility to your plate, but it also helps to give you more control over your cash flow.",{"title":997,"content":998},"Paying property taxes directly vs. with escrow","::inline-table{tableLayout=\"basic\" :rows='[{\"column\":{\"valueOne\":\"Convenience\",\"valueTwo\":\"Automatically handled by mortgage servicer\",\"valueThree\":\"You are responsible for making tax payments on time and in full\"}},{\"column\":{\"valueOne\":\"Financial flexibility\",\"valueTwo\":\"Payments are fixed and automatically included in your monthly payment\",\"valueThree\":\"Depending on your location, you may be able to control when to submit payments and choose to pay in one annual lump sum or more frequently.\"}},{\"column\":{\"valueOne\":\"Risk of late payments\",\"valueTwo\":\"Mortgage servicer handles timely payments, reducing risk of penalties or liens for late bills\",\"valueThree\":\"Failure to pay on time can result in penalties, additional interest or even a tax lien\"}},{\"column\":{\"valueOne\":\"Escrow fees\",\"valueTwo\":\"Servicers may charge fees for managing the escrow account\",\"valueThree\":\"No additional fees for managing your own payments\"}}]' :headers='[{\"value\":\"Feature\"},{\"value\":\"Paying with escrow\"},{\"value\":\"Paying taxes directly\"}]'}\n::",{"title":1000,"content":1001},"How to check if your taxes are included in your mortgage","Not sure if your taxes are folded into your mortgage payments? We’ll help you investigate.   \n\n* **Look at your monthly mortgage statement:** Your monthly statement should have a line item for escrow. If you see a breakdown that includes taxes, then they are indeed included in your payment.   \n* **Ask your lender about escrow:** Don’t be shy—give your lender or mortgage servicer a call. They can offer a detailed breakdown of your mortgage payment and confirm whether taxes are included.   \n* **Check your closing disclosure or loan estimate:** Hopefully, you’ve kept your [closing disclosure](/home-buying/articles/closing-disclosure/) safe and sound. It’s an important document for your records and should clearly state whether property taxes are part of the mortgage.",{"title":1003,"content":1004},"Can property taxes make your mortgage payment go up?","Sometimes. If you look at your mortgage bill and wonder “Why did my mortgage go up?” a few factors could be at play.\n\n* **Property tax reassessment:** Local governments periodically reassess property values. Sometimes, your home value increases due to market conditions or home improvements, pulling your property taxes higher.  \n* **Escrow shortage or recalculation:** Each year, your lender performs an escrow analysis to ensure there’s enough money in the account to cover your property taxes and other expenses, such as homeowners insurance. If there’s a shortage, your monthly payment will increase to make up the difference.\n* **Taxes increase after home purchase:** In some cases, property taxes increase after you buy a home, especially if the previous owner was eligible for a tax exemption. As a result, you may owe a higher mortgage payment.",{"title":1006,"hideTitle":27,"content":1007},"FAQs: Property taxes and your mortgage","::faq{headline=\"FAQs: Property taxes and your mortgage\" :faqs='[{\"question\":\"Do property taxes change every year?\",\"answer\":\"Yes, property taxes may change every year as local governments reassess their tax policies and your property value.\"},{\"question\":\"Can I remove escrow from my mortgage?\",\"answer\":\"In some cases, you can request to remove escrow from your mortgage, especially if you have built up equity in your home. However, your lender may have specific requirements or fees for this process.\"},{\"question\":\"Why is my mortgage higher than expected?\",\"answer\":\"If your mortgage payment is higher than you expected, it could be due to an increase in property taxes, insurance premiums or an escrow shortage. If you’re worried about any changes, reach out to your lender to have your mortgage payment increase explained in detail.\"}]'}\n::","2025-05-20T11:15:00.000Z","**Key insights:**\n\n* Property taxes are often included in a monthly mortgage payment through escrow, but some homeowners pay them separately \n* Property tax amounts vary by location and home value and can change over time, affecting your monthly payment  \n* You can check whether property taxes are included in your monthly payment by reviewing your mortgage statement, loan documents or contacting your lender","Are property taxes included in your mortgage payment?","2026-04-22T09:28:00.000Z",[1013,553,520],"financial-planning",{"introText":1015,"body":1016,"text":524,"to":525},"Want a closer look at property taxes? ","We can help you understand the role property taxes play in your mortgage.",{"title":1018,"description":1019},"Are Property Taxes Included in a Mortgage Payment?","Are property taxes included in a mortgage payment? Let’s break down what property taxes are, how they work and what they mean for your path to homeownership.","content:articles:home-buying:are-property-taxes-included-in-mortgage-payment.json","Are Property Taxes Included In Mortgage Payment","articles/home-buying/are-property-taxes-included-in-mortgage-payment.json",[564,1024,568],{"label":1025,"slug":1013,"seo":1026},"Financial Planning",{"description":1027},"Learn more about financial planning with helpful articles, tools, and guides to support your homeownership journey.",{"_path":1029,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":659,"l1":520,"linkNav":1030,"heroMedia":1031,"teaserImage":1034,"slug":1036,"disclosure":99,"sections":1037,"date":1053,"subheadline":1054,"headline":1055,"isFeatured":6,"tags":1056,"link":1057,"seo":1060,"hasSectionNavigation":27,"_id":1063,"_type":78,"title":1064,"_source":80,"_file":1065,"_extension":78,"tagsDetails":1066},"/articles/home-buying/home-warranty-vs-home-insurance",{"introText":523,"text":524,"to":525},{"landscape":1032,"portrait":1033},"/media/article-home-warranty-home-insurance-mobile-768x512.jpg","/media/article-home-warranty-home-insurance-desktop-520x638.jpg",{"src":1035},"/media/article-home-warranty-home-insurance-teaser-500x500.jpg","home-warranty-vs-home-insurance",[1038,1041,1044,1047,1050],{"title":1039,"content":1040},"What is a home warranty?","Simply put, it’s a home protection plan for the essential items that keep your home running—like your HVAC, water heater, fridge and more. When one of these appliances or systems breaks down because of normal wear and tear, a home warranty covers its [repair](/home-buying/articles/how-to-negotiate-repairs-after-inspection/) or replacement.\n\n### How does a home warranty work? \n\nThe first step is securing the right warranty for you and your budget. You can typically choose coverage for just appliances, just systems or a combination of both, so choose the option that makes sense for your needs.    \n\nThen, if something does break down, simply contact your provider to file a claim. The home warranty company will send a technician to your home to assess the issue and either repair or replace the item.  \n\nFinally, it’s important to remember that there is generally a service fee (even if the repair or replacement is covered). This can range from $75–$125, depending on your provider and the specifics of your coverage.  \n\n### What does a home warranty cover? \n\nYour home’s appliances and systems won’t last forever, but a home warranty helps cover items you use the most. Let’s look at what’s usually covered—and what isn’t. \n\n* **Appliances:** Refrigerators, ovens, dishwashers, washers and dryers. \n* **Systems:** HVAC, plumbing, electrical. \n* **Exclusions:** Pre-existing conditions, improper maintenance, neglect. \n\n### How much does a home warranty cost?\n\nA home warranty isn’t one-size-fits-all. Its cost depends on how much protection you want. On average, you’ll spend anywhere from $220 to $1,880 a year, with service call fees running between $75 and $125 per visit. The final price depends on things like your home’s location, [its condition](/home-buying/articles/what-is-a-home-inspection/) and, of course, how much coverage you need.\n\n::quote{icon=\"\" quote=\"Your home’s appliances and systems won’t last forever, but a home warranty helps cover items you use the most.\"}\n::",{"title":1042,"content":1043},"What is home insurance?","Home insurance acts as a safety net for your home, covering damage to your house and belongings, as well as protecting you if someone gets hurt on your property. It’s not just a smart choice—it’s a must-have if you’ve got a mortgage. Lenders require a home insurance policy to protect you (and them) in case disaster strikes.  \n\n### How does home insurance work? \n\nDifferent policies cover different types of homes, but, in general, they all cover incidents like fires, windstorms and theft. That being said, a number of factors impact your coverage, including location, the value of your home and belongings, the size and condition of your home and the deductible—which is the amount you pay out of pocket before the insurance company begins paying.  \n\nFor example, with a $2,000 deductible and a $20,000 covered loss, you pay $2,000 and the insurance company covers the remaining $18,000. So, while higher deductibles can lower premiums, they also increase out-of-pocket costs. Other factors that influence the total amount paid out by your insurance company include coverage limits and the specific damage covered by the policy.  \n\n::tip{icon=\"Bulb\" text=\"Boost your home’s defenses for greater savings. Installing a security system, storm shutters or impact-resistant roofing can lower premiums and add protection.\" title=\"PRO TIP\"}\n::\n\nWhat does home insurance cover? \n\nBefore you sign your policy, it’s important to understand what your policy covers.  \n\n* **Dwelling coverage:** Protects the structure of your home from disasters like fire, windstorms and vandalism. \n* **Personal property:** Covers your belongings if they are damaged or stolen due to covered events such as fire, theft or storms. \n* **Liability protection:** Helps pay for legal fees if someone is injured on your property. \n* **Exclusions:** Does not cover appliance breakdowns, wear and tear or neglect. \n\n### How much does home insurance cost? \n\nWhile the average cost nationally is $1,400 per year, insurance prices can vary significantly depending on several factors, including:  \n\n* **Home value and replacement cost:** The cost to rebuild your home if it is damaged. \n* **Location and risk factors**: Whether your home is in areas prone to floods, wildfires or other natural disasters. \n* **Deductible selection:** Choosing a higher deductible can lower your premiums. \n* **Claims history and credit score**: Your past claims and credit score can affect your insurance rates.",{"title":1045,"content":1046},"Home warranty vs. home insurance ","::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Coverage Type\"},{\"value\":\"Home Warranty\"},{\"value\":\"Home Insurance\"}]' :rows='[{\"column\":{\"valueOne\":\"Appliances and Systems\",\"valueTwo\":\"Covers repairs and replacements of appliances and systems (HVAC, water heater, refrigerator, etc.) \",\"valueThree\":\"Does not cover appliances or systems \"}},{\"column\":{\"valueOne\":\"Structural Damage\",\"valueTwo\":\"Does not cover structural damage\",\"valueThree\":\"Covers structural damage (fire, hail, theft, vandalism, etc.)\"}},{\"column\":{\"valueOne\":\"Personal Possessions\",\"valueTwo\":\"Does not cover personal possessions\",\"valueThree\":\"May cover personal possessions\"}},{\"column\":{\"valueOne\":\"Liability\",\"valueTwo\":\"Does not provide liability coverage\",\"valueThree\":\"Provides liability coverage for injuries on the property\"}},{\"column\":{\"valueOne\":\"Natural Disasters\",\"valueTwo\":\"May cover some natural disasters but often requires additional coverage\",\"valueThree\":\"Covers natural disasters like fire, hail, lightning, tornado; additional coverage needed for floods and earthquakes\"}},{\"column\":{\"valueOne\":\"Deductibles\",\"valueTwo\":\"Typically covers full cost of repair or replacement, with a service call fee\",\"valueThree\":\"Requires a deductible before coverage kicks in\"}},{\"column\":{\"valueOne\":\"Service Providers\",\"valueTwo\":\"Works with specific repair businesses\",\"valueThree\":\"You can choose your own service providers\"}}]'}\n::\n\n### Coverage differences \n\nYou can remember the differences in home protection coverage like this: a home warranty covers everyday appliances and systems like HVAC units, water heaters and fridges, while home insurance steps in for bigger disasters like fires, storms, theft and even liability if someone gets hurt on your property. \n\n### Cost differences \n\nGiven the nature of its coverage, a home warranty generally costs less per year. However, you will have to pay a service fee for each claim. Home insurance, in contrast, comes with a higher premium and a deductible when you file a claim.  \n\n::tip{icon=\"Bulb\" text=\"Save with annual payments. Some providers offer discounts if you pay for the year up front instead of opting for monthly installments.\" title=\"Pro Tip\"}\n::\n\n### When do you need both? \n\nWhether you’re designing your dream home or [reviving](/home-buying/) a charming fixer-upper, having both a home warranty and home insurance makes good sense. Owners of new homes get peace of mind with full protection on their investment, while owners of older homes safeguard against aging systems, worn-out appliances and unexpected disasters.",{"title":1048,"content":1049},"Pros and cons of home warranties & home insurance","Before you commit, make sure you understand all the advantages and disadvantages of home insurance and a home warranty.  \n\n### Home warranty pros & cons \n\n*  Covers unexpected appliance and system breakdowns\n* Saves money on unexpected repair costs\n* Service fees apply per claim \n* Not all repairs are covered (exclusions apply) \n\n### Home insurance pros & cons \n\n* Covers home damage, personal belongings and liability \n* Mortgage lenders require it for home loans \n* Higher premiums than home warranties \n* Deductibles must be met before coverage applies",{"title":1051,"hideTitle":27,"content":1052},"FAQs – Home warranty vs. home insurance","\n\n::faq{headline=\"FAQs – Home warranty vs. home insurance\" :faqs='[{\"question\":\"Do I need both a home warranty and home insurance?\",\"answer\":\"No, you don’t have to have both home insurance and a home warranty. But they are a powerful combination. While home insurance protects against disasters like fires and theft, a home warranty saves you from costly repairs when appliances or systems break down. Together, they give your home complete protection and keep surprises from draining your bank account.\"},{\"question\":\"Does home insurance cover appliance breakdowns?\",\"answer\":\"No, it does not. But a home warranty can keep you covered if your appliances are on the fritz.\"},{\"question\":\"Can I purchase a home warranty at any time?\",\"answer\":\"Yes, you can purchase a home warranty at any time. However, many providers won’t offer coverage until 30 days after signing the contract.\"},{\"question\":\"What happens If my home warranty claim is denied?\",\"answer\":\"If your home warranty claim is denied, you’ll most likely have to cover the cost of any repairs or replacements yourself.\"},{\"question\":\"How do I choose the best home warranty plan?\",\"answer\":\"To pick the best home warranty plan, start by looking at your appliances and systems. If they’re getting older, coverage can save you big by repairing or replacing costly appliances and systems at a fraction of the price. Compare different plans based on what they cover, service fees and any exclusions. Choose between appliance, system or combo plans, and check if you can add extras like pool or hot tub coverage. And always make sure the plan fits your budget and delivers real value when things break down.\"}]'}\n::","2025-04-17T07:24:00.000Z","Wondering how a home warranty differs from home insurance? Take a seat. While both provide protection, they do so in distinct manners. A home warranty takes care of fixing or replacing significant appliances and home systems, whereas home insurance protects your house's structure and personal items from unforeseen events. There's a lot to explore, so let’s delve deeper into the details.","What’s the difference between a home warranty and home insurance?",[552,553,520],{"introText":1058,"body":1059,"text":524,"to":525},"Still have questions about home warranties or home insurance?","A mortgage specialist can help answer them.",{"title":1061,"description":1062},"Home Warranty & Home Insurance Compared | Mortgage.com","Confused about home warranty vs. home insurance? Learn the key differences, coverage details, and costs to make an informed choice for your home.","content:articles:home-buying:home-warranty-vs-home-insurance.json","Home Warranty Vs Home Insurance","articles/home-buying/home-warranty-vs-home-insurance.json",[564,568,572],{"_path":1068,"_dir":520,"_draft":6,"_partial":6,"_locale":7,"readTime":659,"l1":520,"linkNav":1069,"heroMedia":1070,"teaserImage":1073,"slug":1075,"disclosure":99,"sections":1076,"date":1101,"subheadline":1102,"headline":1103,"isFeatured":6,"tags":1104,"link":1105,"seo":1108,"hasSectionNavigation":27,"_id":1111,"_type":78,"title":1112,"_source":80,"_file":1113,"_extension":78,"tagsDetails":1114},"/articles/home-buying/title-insurance",{"introText":523,"text":524,"to":525},{"landscape":1071,"portrait":1072},"/media/what-is-title-insurance-mobile-768x512.jpg","/media/what-is-title-insurance-desktop-520x638.jpg",{"src":1074},"/media/what-is-title-insurance-teaser-500x500.jpg","title-insurance",[1077,1080,1083,1086,1089,1092,1095,1098],{"title":1078,"content":1079},"Definition of title insurance","\nWhat is home title insurance? It’sa policy that protects lenders and homeowners from financial costs if property rights are challenged due to past issues like public record errors or fraudulent documents. Don’t confuse it with the equally important [homeowners insurance](/home-buying/articles/what-is-homeowners-insurance/), which covers future damages to the property.",{"title":1081,"content":1082},"Importance of title insurance","\nProperty title insurance is an essential piece of the [underwriting process](/home-buying/articles/what-is-mortgage-underwriting/) and the homeownership paper trail, protecting your claim on the property. If there are errors or fraudulent documents lurking in the archives, they can pose serious risks to the latest owners. Individuals or agencies can challenge your ownership if there are undiscovered liens, fraudulent paperwork or conflicting property claims.  \n\n\n::callout{title=\"Title insurance in action\" body=\"Let’s say you discover a lien on your home because the previous owner didn’t pay off their mortgage, or a mysterious heir contests your property claims. Title insurance can offer protection in many situations, reducing the financial burden of defending your property rights.\" :media='{\"landscape\":\"/media/gettyimages-174764619.png\",\"portrait\":\"/media/desktop-327x245.jpg\"}'}\n::",{"title":1084,"content":1085},"Types of title insurance","There are two types of title insurance: one that protects the lender and one that protects the owner. Keep in mind that these are separate policies and not a two-for-one special.  \n\n### Owner’s title insurance \n\nThis protects the keys to your castle against ownership claims, unknown liens or legal disputes. While this coverage isn’t necessarily required, it’s highly recommended to ensure your peace of mind and financial security. Wondering who pays for owner’s title insurance? Typically, it’s the buyer’s responsibility during [closing costs.](/home-buying/articles/closing-costs/) \n\n::tip{icon=\"Bulb\" :text='\"\\nWhen [negotiating terms of the sale](/home-buying/articles/how-to-make-an-offer/), the buyer and seller can come to an agreement that requires the seller to cover title insurance. When you’re talking terms, this option can help you trim the fat off closing costs.\"' title=\"Pro Tip\"}\n::\n\n### Lender’s title insurance \n\nThe lender also wants to protect their interest in the property when you assume the loan, ensuring the mortgage is valid. Most mortgage lenders require this coverage as a condition of every [home loan](/home-loans/), making it a standard part of the real estate transaction. Depending on the circumstances, the cost of lender’s title insurance can fall on the home buyer or the lender.",{"title":1087,"content":1088},"Common title issues covered","* **Errors in public records** like misspelled names or incorrect legal descriptions \n* **Unknown liens** from unpaid debts by former owners \n* **Forgery or fraud** in title documents \n* **Undisclosed heirs** claiming ownership \n* **Boundary disputes** with neighbors",{"title":1090,"content":1091},"Cost of title insurance","Title insurance is usually a one-time premium payment made at closing, not part of monthly [mortgage payments](/calculators/monthly/). According to Fannie Mae, the average cost is 0.42% of the purchase price, varying by state. This one-time fee defends your ownership for as long as you own the property.\n\n::did-you-know{title=\"Did you know that title insurance typically costs: \" :stats='[{\"value\":\"0.5%–1.0%\",\"label\":\"of home purchase price\"}]'}\n::",{"title":1093,"content":1094},"How to obtain title insurance","You know you need title insurance, but how do you lock it down? Luckily, it’s a fairly easy step in [the closing document process](/home-buying/articles/closing-documents/).  \n\n* **Step 1:** **Choose a reputable title insurance company.** Do your research and pick a company with a reputation for keeping homeowners happy. \n* **Step 2:** **The company performs a title search to detect issues.** This top-to-bottom deep dive helps identify potential problems with the title before the policy is issued.  \n* **Step 3:** **The policy is issued once you** [close on the home](/home-buying/articles/closing-on-a-house/)**.** After the title search is complete and any issues are resolved, the policy takes effect.",{"title":1096,"content":1097}," Choosing a title insurance provider","Need help finding a title insurance company? Don’t sweat it. \n\n::content-table{:tableData='[{\"row\":[{\"column\":\"FACTORS TO CONSIDER\"},{\"column\":\"TOP NATIONAL PROVIDERS\"}]},{\"row\":[{\"column\":\"Company reputation\"},{\"column\":\"First American Title\"}]},{\"row\":[{\"column\":\"Pricing\"},{\"column\":\"Fidelity National Title\"}]},{\"row\":[{\"column\":\"Customer service\"},{\"column\":\"Old Republic Title\"}]},{\"row\":[{\"column\":\"Lender recommendations\"},{}]}]'}\n::",{"title":1099,"hideTitle":27,"content":1100},"Title insurance FAQs","\n\n::faq{headline=\"Title insurance FAQs\" :faqs='[{\"question\":\"What is home title insurance and why do I need it?\",\"answer\":\"Home title insurance acts as your financial shield against legal disputes over property ownership. It ensures that you’re the rightful owner of the property and helps clean up messes that can bubble up from past ownership issues like paperwork errors, liens or fraudulent documentation. \"},{\"question\":\"What does home title insurance cover?\",\"answer\":\"Home title insurance typically covers you for issues like title defects, forged documents, undisclosed heirs and legal fees associated with defending your ownership rights. \"},{\"question\":\"How much does home title insurance cost?\",\"answer\":\"Title insurance is a one-time payment made at closing, usually ranging from 0.5% to 1.0% of the home's purchase price. According to Fannie Mae, the average cost is about 0.42% of the home's value. The exact amount will vary based on the property's value and location.\"},{\"question\":\"Who pays for title insurance, the buyer or the seller?\",\"answer\":\"The responsibility to pay for title insurance can vary depending on state laws and terms of sale. In some states, the seller is required to cover the cost, while in others, it’s the buyer's responsibility. This can also be negotiated as part of the purchase agreement, so it’s important to explore all your options and understand the specific requirements in your area.\"},{\"question\":\"What is the difference between owner’s and lender’s title insurance?\",\"answer\":\"Owner’s title insurance shields the home buyer from ownership disputes, while lender’s title insurance safeguards the mortgage lender’s interest in the property. These are different policies and would only provide payouts to the respective policyholder, either the owner or the lender.\"}]'}\n::","2025-04-16T13:55:00.000Z","A home isn’t just where you hang your hat; it’s a huge financial investment that needs protection. Home title insurance is part of the [closing process](/home-buying/articles/closing-on-a-house/) ensuring you have an undisputed claim on your house. It shields mortgage lenders and homeowners from losses if property ownership comes into question. We’ll go over why it matters and how title insurance helps you mark your territory during the [home-buying process](/home-buying/).","What is title insurance?",[552,553,520],{"introText":1106,"body":1107,"text":524,"to":525},"Need some clarity on title insurance?","We can help you get the answers you need.",{"title":1109,"description":1110},"What Is Home Title Insurance?","Protect your home investment with title insurance. Learn what home title insurance is, its costs, and who pays for it.","content:articles:home-buying:title-insurance.json","Title Insurance","articles/home-buying/title-insurance.json",[564,568,572],1776979881430]