Start with your situation, not a product list.
Nobody wakes up wanting a 30-year fixed. You want the house, and someone to tell you what it would take to get it. Find yourself below — each one lists what it requires and which papers prove it.
Find your situation
You served, or you're serving.
This is Lucy's specialty, and she has been through it herself as a military spouse. What it takes: eligibility proven by a Certificate of Eligibility, which she can usually pull for you, plus a DD-214 if you have separated or a Statement of Service if you are still in. The home has to be the one you live in, and it takes a VA appraisal. One document most buyers never think to send — if you draw VA disability compensation, the award letter exempts you from the funding fee. She checks that before anything else.
It's your first house and the down payment is the problem.
Two doors, and the order matters more than the product. FHA is the most forgiving on past credit trouble, but the house has to pass HUD's condition standards and it must be the one you live in. Conventional asks more of your credit and your debt-to-income, and opens up more property types. Both want the same starting stack: 30 days of pay stubs, two years of W-2s, two months of statements — every page — photo ID, and two years of address and job history. If the cash is the sticking point, ask about gift funds and seller-paid closing costs on the call — they move the number more than people expect.
The house you want is outside town.
Then check USDA before you assume it's off the table. It covers far more small-town and outer-suburban ground than the name suggests, and it's zero down. Two gates, and you have to clear both: the address must sit in an eligible area, and total household income must be under the local cap. Everyone's income counts, not just yours, so plan on documents for every adult in the house. Send Lucy the address and she'll check both — before you fall in love with it.
You already own something.
Refinancing needs equity rather than cash, and a mortgage that's current — VA's IRRRL and FHA's streamline ask for much less paperwork than a purchase, and sometimes skip the appraisal. Have the mortgage statement, tax bill and insurance policy to hand. Buying a rental or a second place is a different animal: 15% to 25% down, stronger credit, and reserves still in the bank after closing. If you want rent to help you qualify, that takes a signed lease or a market rent schedule.
The house is above your county's conforming limit.
Then it's a jumbo, and jumbo guidelines are set lender by lender rather than by Fannie or Freddie — reserves, how deeply your income is documented, and the credit bar all vary. That's the one corner of this business where shopping the file genuinely changes what you qualify for, and it's the argument for using a broker at all.
None of these is you?
Then call. Sorting out which of these fits is genuinely Lucy's job and not yours, and it takes about fifteen minutes.
Side by side
What each one asks of you.
Requirements, not rates — a rate depends on your file, the day and the lender, so it isn't something a table can honestly tell you.
| Program | Down payment | Credit & income | Property rules | Documents that matter most |
|---|---|---|---|---|
| VA | 0% | No VA-set minimum score — lenders set their own. Steady documented income. | Must be your primary residence. VA appraisal required. | Certificate of Eligibility, DD-214 or Statement of Service, LES or pay stubs, VA award letter if you draw disability |
| FHA | 3.5% | The most forgiving on past credit trouble. Gift funds allowed with a letter. | Primary residence, and it has to meet HUD's minimum property standards. | 30 days of pay stubs, two years of W-2s, two months of statements, ID, two-year address and job history |
| Conventional | 3–20% | A higher credit bar than FHA. Debt-to-income watched closely. | Any property type, including second homes and rentals. | The same core set, plus written explanations for any large or unusual deposit |
| USDA rural | 0% | Household income must sit under the local cap — everyone's income counts, not just yours. | Address must be in an eligible area. Primary residence only. | Income documents for every adult in the household, plus the property address up front |
| Refinance | Equity, not cash | Mortgage current and in good standing. Streamlines ask for less. | Appraisal usually required; some streamlines waive it. | Current mortgage statement, tax bill, insurance policy, plus the usual income documents |
| Investment | 15–25% | Cash reserves left after closing, and stronger credit than a primary. | Non-owner-occupied. Rental income may need a lease or market rent schedule. | Leases, Schedule E from your returns, and statements proving the reserves |
General guidance only, and not a commitment to lend. Also handled without a page of its own: jumbo financing above your county's conforming limit.
Before you tour it
Check whether the address is USDA-eligible.
USDA publishes the eligibility map itself. Type in the street address and it will tell you yes or no in about ten seconds. Income caps are the second gate — send Lucy the address and she will check that side too.
Documents, once
Get the paperwork out of the way in one pass.
Missing pay stubs are what actually delay a file. Open the group that describes how you're paid and tick things off as you find them — your progress is saved on this device.
W-2 employee
Self-employed or 1099
VA — service documents
Retired or on fixed income
Answers
Questions about picking a program.
General answers. Every file is different, so treat these as a starting point rather than a quote.
Which program am I most likely to qualify for?
Four things decide it: your credit history, how your income is documented, how much cash you have available, and the property itself. Lucy checks all four on the first call and tells you which doors are genuinely open — sometimes more than you expect, occasionally fewer.
Where can the down payment come from?
More places than people expect. Gift funds from family are allowed on every program Lucy writes, as long as there is a signed letter saying it is a gift and not a loan. Seller-paid closing costs are negotiable, and they free up cash you were otherwise spending at the table. And a 3%-down conventional asks for far less up front than most first-time buyers assume. Tell Lucy what you have and she will work backwards from it.
Do I really need 20% down?
No. Twenty percent is what lets you skip mortgage insurance on a conventional loan — it was never a requirement. Plenty of files close at 3%, 3.5%, or nothing at all on VA and USDA.
What will I be asked to provide?
Proof of income, two months of bank statements with every page, photo ID, and two years of address and job history — plus service documents on a VA loan. The checklist above is organized by how you're paid, which is the order Lucy actually asks in.
Does a broker cost more than a bank?
No. Broker compensation is disclosed on your Loan Estimate, in writing, next to every other cost. What you get for it is more than one lender competing for the file, which matters most on jumbo loans and thinner credit.
Can I get pre-approved first?
Yes, and you should. The pre-approval comes off your income, credit and assets — the program can change later without starting over.
Can I switch after I'm under contract?
Often, yes — appraisal requirements and timing are the usual constraints. Say something early rather than at day 25 and Lucy will tell you straight whether it still fits the closing date.
Which states can Lucy do this in?
Alabama, Florida, Georgia, Indiana, North Carolina, Rhode Island, South Carolina, Tennessee, Texas and Virginia. Georgia is home base.