The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

Notes: Roxanne Durney has been set up for a cash-out refinance on a property that is currently owned free and clear. Income has been verified with a 2024 pay stub; however, the 2023 W-2 is still needed. Homeowners insurance is currently estimated at $200/month and will need to be verified with an insurance document. The file is set up with a $250,000 loan amount at 56% LTV. DTI is 40%. I am holding off on running DU until tomorrow morning to avoid triggering disclosures, pending confirmation of a time for Scott to connect with the borrower.

Should You Use Down Payment Assistance or Just Go With 3.5% Down on an FHA Loan?

By Scott Sheldon / December 30, 2025

Buying a home is exciting — but it also comes with decisions that matter. One of the key choices you’ll face is how to cover your down payment. Should you use a down payment assistance (DPA) program, or simply put down 3.5% using a Federal Housing Administration (FHA)-insured loan? Let’s break it down in a…

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