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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Illustration of an orange two-story house next to a green dollar sign, a blue calculator, and stacked coins, with bold text above reading “Income is the key to home affordability,” symbolizing the role of income in determining home buying power.

Why Income Drives Buying Power More Than Credit or Cash

By Scott Sheldon / July 8, 2025

When it comes to buying a home, most people focus on credit scores and down payments. Those two things matter—but if you ask any experienced loan officer what really determines how much home you can afford, the answer is simple: income. Income is the engine behind your buying power. It determines how much a lender…

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