top of page
coworkers answering loan related questions for each other

Frequently Asked Questions

  • What sets Ohana Home Finance apart from other brokers or lenders? 

    • Here at OHF, all of us truly have your best interests at heart. We don't pretend to be working for free or until midnight every day, but what we can promise you is impeccable service, a very strong selection of products, lender partners, and pricing, and our knowledge of this industry, which is invaluable in itself.  ​​

  • What factors determine my eligibility for a mortgage?

    • Eligibility is determined by factors such as credit score, income, debt-to-income ratio, employment history, and the property's value.

  • What is the difference between a fixed-rate and an adjustable-rate mortgage?

    • A fixed-rate mortgage has a constant interest rate, while an adjustable-rate mortgage's interest rate can change periodically, usually in 6 month time increments after the initial fixed period of years.

  • What is the minimum down payment required for a mortgage?

    • Down payment requirements vary, but they typically range from 3% to 20% of the home's purchase price, your credit score and occupancy type.

  • How does my credit score affect my ability to get a mortgage?

    • A higher credit score increases your chances of approval and can lead to better interest rates. Credit scores are only one factor that underwriting reviews to qualify you for a loan.

  • What is a pre-approval, and why is it important?

    • Pre-approval is a lender's commitment to lend you a specific amount. It strengthens your position when making an offer on a home. A fully underwritten pre-approval is our preferred method here at OHF.

  • What are closing costs, and how much should I expect to pay?

    • Closing costs include fees for services like appraisal, title insurance, and funs set aside for insurance and taxes. They typically range anywhere from 2% to 5% of the home's purchase price.

  • Can I pay off my mortgage early without penalties?

    • All of our conventional loan products have no penalty for early payoff. In some cases, loan types such as Debt Service Coverage Ratio loans may have a pre-payment penalty. 

  • What is Private Mortgage Insurance (PMI), and do I need it?

    • PMI is required when making a down payment below 20%. It protects the lender in case of default. In some cases there can be lender-paid PMI.

  • What is an escrow account, and how does it work?

    • An escrow account holds funds for property taxes and insurance, ensuring they are paid on time. At the contracted date, the servicing company holding the account will disburse the correct amounts to the local tax office, or to your insurance carrier.

  • What is the difference between principal and interest in a mortgage payment?

    • The principal is the loan amount, and interest is the cost of borrowing. Mortgage payments include both.

  • What happens if I miss a mortgage payment?

    • Missing payments can result in late fees, negatively impact your credit, and lead to foreclosure if left unresolved.

  • Can I refinance my mortgage, and when is the best time to do so?

    • Refinancing is possible, often to secure a lower interest rate. The best time depends on market conditions and your financial goals.

  • What happens if I want to sell my home before the mortgage is paid off?

    • You can sell your home, but the remaining mortgage balance must be paid off through the sale proceeds.

  • What is debt-to-income ratio, and how does it affect my mortgage application?

    • Debt-to-income ratio is the percentage of your gross income used to cover debts. Lenders typically prefer a ratio below 43%.

  • Are there special programs or assistance for first-time homebuyers?

    • Yes, various programs offer assistance to first-time homebuyers, providing down payment help and favorable terms. Depending on your state, several grants and programs may be available to you.

  • Can I make extra payments towards my mortgage principal?

    • Yes, most mortgages allow for extra payments, helping to reduce the principal and overall interest paid.

  • Do you offer VA loans?​​

    • Yes, we do offer VA loans and pride ourselves on supporting those veterans and family members who have served our country.

  • What is a jumbo loan?

    • A jumbo loan is a loan that exceeds the conforming loan limit set by the FHFA. For 2024, that limit is $766,550.​

bottom of page