Blog | Archives for February 2026

How to Improve Your Credit Before Buying a Home

By Kiley Belanga
February 27, 2026

Are you thinking of buying a home but worried your credit score is holding you back? Having less-than-perfect credit does not have to stop you from getting into your dream home.

Know Where Your Credit Stands Before You Begin

It’s never too late to start improving your credit score. However, before you begin, you first need to know where you stand. It’s important to regularly check your own credit reports to ensure that they are accurate and up-to-date.

The three nationwide credit reporting agencies (Equifax, TransUnion, and Experian) offer free weekly access to credit reports. You can access these by visiting annualcreditreport.com. It is important to access each bureau separately through this portal so you can investigate each report individually for errors. As you pull these reports, you might worry that checking your own score will hurt your standing. However, there is a big difference between you checking your score and a lender checking it.

Expert Tip: Do not get your credit score through annualcreditreport.com. Not only will you be charged if you try to obtain your score, but this score also uses a different scoring model than what your lender uses.

Understanding the Difference: Soft Pull vs Hard Pull

Inquiry Type	Soft Pull	Hard Pull
Examples	Background checks, credit monitoring, employer pulls, and annual credit report.	Auto loans, mortgages, and credit card applications.
Effect on Your Score	No, there is no effect on your score.	Yes, this may result in a small, temporary dip.

Review Your Report and Dispute any Inaccuracies

Once you have your reports in hand, your first quick fix isn’t about paying bills, it’s about finding mistakes. When reviewing your credit report keep an eye out for inaccurate information that may be negatively impacting your score. This could include accounts that do not belong to you or incorrect payment statuses.

If you find inaccuracies, you can initiate an investigation with each bureau to have them corrected. Cleaning up your report provides a great starting point to ensure a maximum impact on your scores.

Top Strategies to Boost Your Credit Score

Whether building credit from scratch or re-establishing yourself after some financial mishaps, here are some of the most effective ways to start:

Make On-Time Payments: Payment history accounts for 35% of your FICO® Score. This makes it the most important factor in determining your creditworthiness. If you are having trouble remembering deadlines, consider setting up calendar reminders or auto-pay. Always schedule at least the minimum amount due each month.

Lower Your Credit Utilization: The amount you owe compared to your total credit limit accounts for 30% of your FICO® Score. While many experts suggest keeping your utilization below 30%, it is best to keep it as low as possible. If you have high balances, prioritize paying them down. You can also make multiple payments throughout the month to keep the balance low before your statement date.

Do Not Close Seasoned Accounts: Credit history makes up for 15% of your score. When you close an old account, you lose that account’s available credit and its history. While loan accounts close automatically when paid off, credit cards can stay open indefinitely. Even if you do not use a card often, keep it open and active to maintain your score.

Diversify Your Credit Mix: Your credit mix makes up for 10% of your score. Lenders like to see that you can manage the different types of debt, such as credit cards and installment loans (like an auto loan).
Note: You should never take on unnecessary debt just to build credit, but a healthy variety helps.

Limit New Credit Applications: Opening new credit lines accounts for 10% of your score. Every time you apply for new credit, the lender will run a hard inquiry. To protect your score, limit how many new accounts you open while preparing for a mortgage.

Expert Tip: When shopping for a mortgage a mortgage, multiple inquiries generally have no additional effect on your score for the first 30 days. This allows you to compare rates without penalty.

What Not to do During the Mortgage Process

Now that you have your credit in check, it’s time to start the mortgage application. Once you start the process, your credit will be in a sensitive state. To ensure a smooth closing, follow these tips:

Avoid Large Purchases: Do not buy a new car or furniture on credit until you have the keys to your new home.

Do Not Change Jobs: Stability is key for lenders. A sudden change in employment can require a new review of your file.

Consult Your Lender Before Paying Collections: Sometimes paying an old collection can actually cause a temporary score dip by “reactivating” the account. Always talk to your loan officer first.

How We Can Help: Rapid Rescoring

At Southern Trust Mortgage, we know that timing is everything. If you pay down a balance or fix an error, you do not always have to wait 30 to 45 days for the bureaus to update. Our Credit Specialist, Mike McNamara, can often perform a Rapid Rescore. This process can update your credit profile in just a few business days, potentially helping you qualify for a better rate immediately.

You’re One Step Closer to Buying Your Dream Home!

Having good credit will open many doors when you apply for a mortgage. However, do not let less-than-perfect credit stop you from starting the journey. Southern Trust Mortgage is committed to helping borrowers reach their goals. Our credit enhancement specialist is available to help you improve score and get you into your dream home.

Important Reminder: Protect your privacy before starting the mortgage process visit optoutprescreen.com or call 888-567-8688 to opt out of receiving unsolicited credit offers, eliminate junk mail and prevent you from being sent pre-approval letters in the mail.

The safety of your information is important to us. Optoutprescreen.com is a secure website and is the only internet website authorized by Equifax, Experian, Innovis, and TransUnion for consumers to opt-out of firm offers of credit or insurance.

Blog | Archives for February 2026

How to Use Your Tax Refund to Buy Your Dream Home in 2026

By Kiley Belanga
February 26, 2026

Turn your tax refund into the key to your dream home! If you are planning to buy a home in 2026, your tax refund could be one of the most beneficial paychecks of the year. While a few thousand dollars may not cover your entire down payment, there are many ways to use your refund to your advantage this tax season.

Give a Boost to Your Down Payment

As mentioned above, your tax refund might not cover your entire down payment, but it certainly can help bridge the gap if you have been waiting to hit your savings goal. Even if you have not reached your target yet, there are still ways to get you into a home!

There are many grants and Down Payment Assistance (DPA) programs designed to help buyers cover down payment and closing costs. Your lender can help review your financial situation to determine which grants and programs you qualify for. Combining these programs with your tax refund can significantly reduce the amount of cash you need to bring to the closing table.

Lower Your Debt to Increase Your Buying Power

One of the key metrics mortgage lenders review is your debt-to-income (DTI) ratio. If your monthly debt payments are too high compared to your income, you may have a difficult time for qualifying for certain loan programs.

Using your refund to pay off a credit card or a small personal loan can lower your DTI. Doing this often improves your credit score and can even help you qualify for a lower interest rate or higher loan amount.

Use Funds Towards Your Earnest Money Deposit (EMD)

Once you are under contract for home, you will likely provide an Earnest Money Deposit. This is a sum of money (usually between 1% and 5% of the home’s purchase price) that proves to the seller you are serious about buying the home.

The money is held in escrow and goes towards your closing costs when you finalize the sale. Please note that if you choose to cancel the sale without a valid legal reason, you may lose your EMD. Your refund is the perfect source for this upfront cost.

Cover the Cost of Professional Inspections

You will likely want to get a home inspection while you are under contract. An inspection tells you if any improvements are necessary and helps you understand the long-term health of the property. Depending on the home, you may want to pay for specialized tests such as:

Sewer Scopes
Radon Testing
Mold Assessments
And more.

These costs can quickly add up. Having your tax refund set aside specifically for these fees provides peace of mind without dipping into your savings.

Costs to Cover After You Close

If you have already secured your home and have money left over, consider putting some of the funds toward these post-closing expenses:

Moving Costs: Professional movers or truck rentals can be expensive.
Rekeying the Home: It is best practice to change all the locks immediately after moving in.
New Appliances: Remember to wait until after you close on your home to make any large purchases. Buying appliances on credit before closing can jeopardize your loan approval.
Emergency Fund: It is a good idea to keep a house emergency fund for unexpected repairs.

Looking Ahead: Tax Benefits of Homeownership

Next tax season, you will be able to enjoy the benefits help homeowners save money. These deductions can often offset the costs of owning a home:

Mortgage Interest Deduction: You can often deduct the interest paid on your mortgage.
Property Tax: State and Local property taxes may be deductible up to certain limits.
Mortgage Points: If you paid “points” to lower your interest rate, these may be deductible.
Energy Credits: You may qualify for credits if you make energy efficient upgrades.

Visit IRS.gov to learn more about tax information for homeowners. Please consult your tax advisor regarding which specific deductions and benefits apply to your situation.

Make 2026 Your Year to Own

Put your tax refund to work towards your future! Contact our team today to see how your refund can help you get the keys to your new home.

Blog | Archives for February 2026

First-Time Homebuyer FAQ: Everything You Need to Know

Buying your first home is an exciting milestone, but it often comes with a whirlwind of questions. Whether you are just starting to save or are ready to tour houses, navigating the mortgage process can feel overwhelming.

By Kiley Belanga
February 19, 2026

To help you navigate this journey, we’ve gathered the most common questions that first-time buyers are asking right now. Use this guide to feel more confident and prepared as you move closer to getting the keys to your home.

How much do I need for a down payment?

One of the biggest myths in real estate is that you need a 20% down payment to buy a home. While 20% is a great goal, it is not a requirement! There are several low down payment options available for first-time and repeat buyers:

Conventional Loans: Can require as little as 3% down.
FHA Loans: Allow for a down payment as low as 5%.
VA and USDA Loans: Often require 0% down for eligible borrowers (military veterans/service members and rural property buyers, respectively).

Note: While a 20% down payment helps you avoid Private Mortgage Insurance (PMI) on conventional loans, you can still secure your home with much less upfront costs.

What is a “Pre-Approval” and why is it so important?

A Pre-Approval is a formal document from a lender that states how much money you are eligible for borrow. This is based on a professional review of your credit history, income, and assets.

In a competitive market, a pre-approval letter shows sellers and agents that you are a serious and qualified buyer. In a competitive market, having a pre-approval letter is often required just to submit an offer.

At Southern Trust, we know how important a pre-approval letter is during your home search. That’s why we offer Priority Approval, a fully underwritten approval letter in 24 hours or less, so that you can make a strong, competitive offer and guarantee a quick closing.

How long does the mortgage process take?

The timeline for buying a home varies for everyone, but once your offer is accepted, the mortgage process typically takes 30 to 60 days.

The entire journey from your initial search to closing day can range from a few weeks to several months. Key factors that can influence your timeline include:

Current market conditions and inventory
Your personal financial readiness
The length of your home search

What are closing costs?

Closing costs are fees associated with finalizing your home loan. These are sperate from your down payment and are due on the day you officially close on your home.

Common examples of closing costs include:

Origination Fees (the cost of processing the loan)
Appraisal Fees
Title Insurance and Attorney Fees
Prepaid Taxes and Homeowner’s Insurance

Typically, you should expect your closing costs to be between 2%-5% of the total loan amount.

How do I find a lender and real estate agent to work with?

The professionals you choose for your “Home Team” will make or break your experience. They will be your biggest advocates, negotiators, and guides.

Ask for Referrals: Talk to your friends, family, or colleagues. Word of mouth from people you trust is an invaluable starting point.

Do Your Research: Look for professionals who specialize in working with first-time buyers in your specific area.

Interview Your Team: Don’t be afraid to ask a lender about their communication or a Real Estate Agent about their experience in your preferred neighborhood.

Ready to start your homeownership journey?

Taking the leap into your first home is a big deal, but you don’t have to do it alone. With the right knowledge and a dedicated team behind you, your goal is well within reach.

Blog | Archives for February 2026

Mortgage Insurance vs Homeowner’s Insurance: What’s the Difference?

Buying a home is the biggest purchase you will likely ever make. Naturally, you want to protect that investment with homeowner’s insurance in case of an accident or natural disaster. At the same time, banks that lend large sums of money want to protect their own interest with mortgage insurance. Continue reading to learn how these two types of coverage differ and how they affect your monthly payment.

By Kiley Belanga
February 12, 2026

What is Mortgage Insurance?

Mortgage Insurance protects the lender in case you stop making your mortgage payments. While it is not required for every loan, certain factors determine whether you must pay for it.

Key Types of Mortgage Insurance:

Private Mortgage Insurance (PMI): This applies to conventional loans.

Mortgage Insurance Premium (MIP): This is specific to FHA loans.

What is Homeowner’s Insurance?

Homeowner’s Insurance protects you and your home from physical damages and legal liability. Lenders typically require proof of coverage before you can close on your home.

What does Homeowner’s Insurance Cover?

Dwelling: The physical structure of the home.

Personal Property: Furniture, clothes, and electronics.

Liability: Protection if someone is injured on your property.

Additional Living Expenses (ALE): Hotel costs if your home is unlivable due to a covered event, such as a fire.

Mortgage Insurance Requirements by Loan Type

Each loan program has unique rules for mortgage insurance. Here is a breakdown of the most common options:

Conventional Loans: You do not need a 20% down payment to secure a conventional loan, but PMI is required for any down payment less than 20%.

FHA: Mortgage Insurance is referred to as MIP in this case. Most FHA Loans require insurance for the life of the loan. However, if you put down 10% down or more with at least a 15-year term, then the MIP is removed after 11 years.

VA: One of the many benefits of the VA Loan is that there is no monthly mortgage insurance requirement.

USDA: While USDA Loans do not have “PMI” they do require an upfront guarantee fee that is 1%/ of the loan amount paid at closing. They also include an annual fee that’s 0.35% of the loan amount, which is paid as a monthly premium.

How much is Mortgage Insurance?

Typically, fees range from 0.5% to 2% of the original loan amount, per year. This cost is divided into twelve installments and added to your monthly mortgage payment.

How do you get rid of PMI?

If you have a conventional mortgage, lenders are legally required to cancel PMI once the mortgage balance drops to 78% of the home’s original purchase price or when the loan reaches the halfway point of its term.

You can also request cancellation once you’ve reached 20% equity in your home. To do this, you must be current on your payments and may need a new appraisal to verify the current property value.

Removing MIP from FHA Loans

Removing insurance from an FHA Loan depends on when your loan started:

If your mortgage originated before June 3, 2013:

You have made all your monthly payments on time.
You’ve paid at least 5 years of a 20,25,or 30-year loan.
Your mortgage must have a loan-to-value (LTV) ratio of 78% or less.

If your loan originated on or after June 3, 2013:

Your down payment must have been 10% or more at the time of purchase.
You must have made on-time payments for the past 11 years.

If you do not meet these specific requirements, you may be able to refinance your FHA loan into a conventional mortgage to eliminate the insurance costs.

How much does homeowner’s insurance cost?

The cost varies based on the state you live and the value of your home. When choosing your plan be sure to shop around with different companies to ensure you are getting the best deal and the right amount of coverage for your home.

How is homeowner’s insurance paid?

You can pay your insurance company directly, but many homeowners choose to use an escrow account. By using an escrow account, the cost is factored into your monthly mortgage payment. When the insurance bill is due, the lender pays it on your behalf using the funds in the account.

The Takeaway

Both mortgage insurance and homeowner’s insurance are important to the lending process. Mortgage insurance makes homeownership more accessible for borrowers with lower down payments by giving lenders financial security. While homeowner’s insurance helps protect your biggest asset: your home.

Are you ready to start the mortgage process? Contact us today!

Blog | Archives for February 2026

HomeReady® and Home Possible® Extend $2,500 Down Payment and Closing Cost Assistance Grant

By Kiley Belanga
February 11, 2026

Great news for homebuyers! Fannie Mae HomeReady® and Freddie Mac Home Possible® are extending their $2,500 Down Payment and Closing Cost Assistance Grant for loans closed by December 31, 2026.

Continue reading to find out what this means for homebuyers and if you are eligible to receive these funds.

HomeReady® and Home Possible® $2,500 Down Payment and Closing Cost Assistance Grant

Also referred to as the Very Low-Income Purchase (VLIP) credit, this program is designed to make homeownership more accessible for borrowers who may have the credit scores to qualify but need an extra boost to cover upfront costs.
Whether you need help with your down payment or help covering closing costs, this $2,500 credit gives homebuyers a head start.

How It Works:

The $2,500 is applied as a lender credit at the closing table. This means the money goes directly towards your costs, reducing the amount of cash you need to bring to closing.

Best of all, this is a true grant. Unlike other down payment assistance programs, this is not a second mortgage or a lien. There is no requirement to pay this money back if you sell or refinance your home in the future.

Key Eligibility Requirements:

First-Time Status: At least one borrower must be a first-time homebuyer.
Income Limits: Household income must be at or below 50% of the Area Median Income Limit (AMI).
- Research Fannie Mae Income Limits
- Research Freddie Mac Income Limits
Credit Requirements: Minimum credit score of 620 or (680 for manufactured homes).
Minimum Contribution: A down payment of at least 3% is required. The credit must be applied as a credit towards the down payment or closing costs (which can include offsetting costs of lender-paid mortgage insurance).
Homebuyer Education: Homeownership counseling is required before the loan can be cleared to close. Borrowers can complete this course online for free.

Additional program requirements may apply. Consult your loan officer to confirm your specific eligibility.

Available for both HomeReady® and Home Possible®, this grant allows borrowers more options for their loan. Here’s the how these two options stack up against each other.

Compare Your Options: HomeReady® vs Home Possible®

Product	Fannie Mae HomeReady®	Freddie Mac Home Possible®
Great For	Borrowers with a strong rental history	Borrowers looking for property flexibility
Down Payment	3% minimum requirement	3% minimum requirement
Mortgage Insurance	Reduced MI rates and ability to cancel it later	Cancelable mortgage insurance (restrictions apply)
Property Types	Standard Residential Properties	Single-family, manufactured homes, and condominiums

Why Choose HomeReady®

HomeReady® helps makes homeownership a reality for low-income borrowers by looking at the bigger picture of financial responsibility.

Flexible Funding: Use gifts or grants from various sources with no minimum personal contribution required.

Efficiency: Immediate appraisal orders help minimize delays so you can close with confidence.

Affordability: Lower mortgage insurance requirements keep your monthly payments more manageable.

Learn more about HomeReady®.

Why Choose Home Possible®:

Similarly, Home Possible® helps bridge the gap by offering versatile options for various housing types.

Diverse Housing: This program applies to single-family homes, manufactured housing, and renovations to condominium units.

Credit Savings: Includes credit fee caps and additional savings for qualified borrowers.

Long-Term Value: Cancelable mortgage insurance can potentially save you thousands over the life of the loan.

Learn more about Home Possible®

While both options make for great choices for homebuyers, your loan officer can help determine which option best fits your specific situation.

Make Home Happen Today

The extension of the $2,500 VLIP Grant through 2026 helps provide a massive window of opportunity for our community. Contact us today to see if you qualify for this $2,500 grant or other local assistance programs.

Blog | Archives for February 2026

FHLB Grant Funds are Back: Get up to $20,000 Towards Your New Home

By Kiley Belanga
February 11, 2026

📢 Program Update

FHLB Funds have been fully allocated, but that doesn’t mean the door is closed on your homeownership goals. Additional grant opportunities are still available! Contact us today to see which options you qualify for.

Stay in the loop: Program availability can change fast! Follow us to stay up-to-date on grants, down payment assistance, and market news: Facebook | Instagram | LinkedIn

Amazing news for homebuyers! The Federal Home Loan Bank (FHLB) is officially reopening its grant funding February 23^rd, 2026. If you are currently house hunting or planning to buy soon, these funds can significantly lower your out-of-pocket costs.

FHLB offers three grant programs for qualifying homebuyers who can use extra assistance when buying their home.

First-Time Homebuyer Grant: $17,500

This program is specifically designed to help first-time buyers overcome the hurdle of initial costs. Qualified borrowers can use these funds toward their down payment or closing costs.

Key Requirements:

First-Time Status: Must be a first-time homebuyer or have not owned a home in the last three years.
Primary Residence: The home must be used as your primary residence.
Income Limits: Household income must be at or below 80% of the Area Median Income Limit (AMI).
Minimum Contribution: A $1,000 minimum contribution is required from the borrower.

Community Partners Grant: $20,000

We believe those who serve our communities deserve a place to call home. This grant is available to both first-time and repeat homebuyers in specific service-oriented professions.

Eligible Professions Including Any Employee, Active or Retired, from:

Law Enforcement: Includes personnel from agencies administered by state or local government.
Fire & Emergency Services: Including state or local government, both volunteer and career firefighters and other first responders (National Guard, Reservist, or Med Tech)
Private or Public School: Teachers, administrators, and school support staff (including janitorial and office staff).
Healthcare Workers: Accredited or state recognized medical or health care facility or certified, accredited or licensed health care worker.
Military: Veterans, active-duty members, or surviving spouses.

Don’t see your specific title? If you are licensed professional or government employee in these sectors, you likely qualify! Reach out to us to confirm your eligibility.

Key Requirements:

Income Limits: Household income must be at or below 80% of the Area Median Income Limit (AMI).
Minimum Contribution: A $1,000 minimum contribution is required from the borrower.

Workforce Housing Plus+: $15,000

To combat rising home prices and inflation, this grant supports “middle-income” workers who might not qualify for traditional low-income assistance but still need a boost.

Requirements:

Income Limits: Specifically for buyers between 80.01% and 120% of the Area Median Income (AMI) Limit.
Borrower Contribution: A minimum of $1,000 from the borrower’s own funds is required.
Primary Residence: Must be owner-occupied.

Why Choose an FHLB Grant?

Beyond the initial funding, these grants offer incredible flexibility:

Loan Compatibility: Works with almost all loan types, including VA, USDA, FHA, and Conventional.
Stackable Savings: In many cases, these can be combined with state-specific first-time homebuyer programs for even more savings.
Versatile Use: Any excess grant funds can be applied toward increasing your down payment or buying down your interest rate to lower your monthly payment.

Don’t Wait! Apply Today.

Funds are limited and available on a first come, first served basis. Contact a Southern Trust Mortgage loan officer to determine your eligibility and secure yours today!

Additional requirements may apply for each program. Consult your loan officer to confirm your eligibility.

Blog | Archives for February 2026

Everything You Need to Know about Conventional Loans

By Kiley Belanga
February 5, 2026

As one of the most popular mortgage options on the market, Conventional Loans offer the flexibility and competitive rates needed to meet the goals of today’s homebuyers. Whether you are looking to buy your first home or invest in a second property, understanding the benefits, requirements, and key features of conventional financing is the first step toward a successful closing.

What is a Conventional Loan?

A conventional mortgage is a type of loan not insured or guaranteed by a government agency (unlike FHA, VA, or USDA Loans). Instead, these loans follow guidelines set by private entities like Fannie Mae and Freddie Mac.

Conventional loans are a great fit for borrowers with stable income and solid credit scores.

Conforming vs Non-Conforming Loans

Conforming Loans: These stay within the dollar limits set by the Federal Housing Finance Agency (FHFA). For 2026, the baseline limit for a single-family home has increased to $832,750 in most of the U.S.

Non-Conforming (Jumbo) Loans: If your dream home exceeds the local conforming limit, it is considered “Non-Conforming” or a Jumbo Loan. These typically require higher credit scores and larger down payments due to the increased risk to the lender.

Conventional vs FHA: Which is Right for You?

Many buyers weigh these two options when considering a mortgage. Here is how they compare at a glance:

Feature	Conventional Loan	FHA Loan
Minimum Down Payment	3%	3.5%
Credit Score Requirement	620+	500–580+
Mortgage Insurance (PMI)	Cancellable at 20% equity	Usually for the life of the loan
Property Type	Primary, Second, or Investment	Primary Residence Only

How Do You Qualify for a Conventional Mortgage?

While every lender has slightly different standards, the general requirements for a conventional mortgage include:

Credit Score: A minimum score of at least 620 is typically required, though higher scores can help secure more competitive interest rates.
Debt-to-Income Ratio (DTI): Your monthly debt payments should ideally be below 36% – 43% of your gross monthly income.
Down Payment: You can secure a loan with as little as 3% down (available for first-time buyers or meeting specific income criteria).
Employment: A stable two-year work history is standard for verifying consistent income.

Flexible Terms and Rate Options

Conventional loans aren’t “one size fits all.” You can customize your loan structure based on your long-term financial goals:

Fixed-Rate Mortgages: Your interest rate stays the same for the entire life of the loan. Common terms include 15, 20, or 30 years.

Adjustable-Rate Mortgage (ARMs): These usually offer a lower initial interest rate for a set period of time (like 5 or 7 years) before the rate adjusts based on current market conditions.

The Truth About Down Payments and PMI

One of the biggest myths in real estate is that you must have a 20% down payment for a conventional loan. This is false. You can purchase a home with as little as 3% down. However, if you put down less than 20%, you will be required to pay Private Mortgage Insurance (PMI).

Pro Tip: Unlike FHA loans, where mortgage insurance often lasts for the life of the loan, PMI on a conventional loan can be cancelled once you reach 20% equity. This simple change can save you hundreds of dollars a month down the road!

Your Home Loan Application Checklist:

Ready to apply? Having your paperwork organized will speed up your approval. To get started, you will generally need:

Income Proof: Pay Stubs from the last 30 days and W-2s/ Tax Returns form the past two years.
Asset Documentation: Bank statements from the last two months.
Identification: A valid government-issued ID (Driver’s License, Military ID, State-Issued ID, or Passport)
Additional Documentation may be Requested

Is a Conventional Loan Right for You?

Conventional Loans are an excellent option for buyers looking for competitive interest rates, flexible terms, and the ability to eventually eliminate mortgage insurance.

Not sure if you meet the credit score requirements or have questions about local loan limits? Contact us today and we will help you find the perfect loan to meet your homeownership goals!

Frequently Asked Questions (FAQ)

Is it better to get an FHA or Conventional Loan?
It depends on your financial profile. Conventional loans are often better suited for those with higher credit scores (620+) and larger down payments. FHA loans are typically good for those with lower credit scores and higher debt-to-income ratios. Your loan officer can help determine which loan option best fits your financial profile.
Can I get a Conventional Loan with 3% Down?
Yes! There are specific programs like (HomeReady or Home Possible) and options for first-time homebuyers that allow for a down payment as low as 3%. This along with cancellable PMI makes conventional financing a competitive alternative to FHA Loans.
What is the difference between a Conforming and Jumbo Loan?
A conforming loan meets the dollar limits and guidelines set by Fannie Mae and Freddie Mac. A Jumbo or Non-Conforming Loan exceeds those limits. Because Jumbo Loans cannot be sold to Fannie or Freddie, lenders often have stricter credit and down payment requirements for them.
How do I get rid of PMI on a Conventional Loan?
Unlike government-backed loans, you don’t have to refinance to get rid of PMI on a Conventional Mortgage. Once your loan-to-value (LTV) ratio reaches 80% (meaning you have 20% equity), you can request that your lender remove the PMI. It is automatically removed once you reach 22% equity.

Blog | Archives for February 2026

Reverse Mortgages: A Mortgage Solution for Homeowners 62+

For many homeowners, the greatest asset they own is the one they’re currently sitting in. After years of making payments and building equity, it’s finally time for your home to return the favor. Introducing Southern Trust Mortgage’s Reverse Mortgage Program, a loan option specifically designed to provide financial flexibility and peace of mind for homeowners aged 62 and older.

By Kiley Belanga
February 3, 2026

What is a Reverse Mortgage?

Unlike a traditional mortgage where you make payments every month, a Reverse Mortgage pays you. You retain ownership of your home, but you convert a portion of your equity into usable cash. The best part? No monthly mortgage payments are required as long as you live in the home as your primary residence, keep up with property taxes, and maintain homeowners insurance.

The beauty of this program lies in its flexibility. Homeowners who choose a Reverse Mortgage typically use their home equity to:

Supplement Retirement Income: Boost your monthly cash flow to cover daily expenses.

Eliminate Existing Debt: Pay off your current traditional mortgage to get rid of that monthly bill.

Cover Healthcare Costs: Manage unexpected medical bills or in-home care.

Home Renovations: Modify your home to make “aging in place” safer and more comfortable.

Is a Reverse Mortgage Right for You?

While a reverse mortgage is a powerful tool, it’s a big decision. It’s generally an ideal fit if:

You are 62+

You have significant equity in your home

You plan to stay in your home for the long term

Ready to take the next step toward financial freedom?

Your retirement should be about enjoying the life you’ve built, not worrying about the next bill. Our team of specialists is here to walk you through the process, answer your questions, and help you determine if this is the right move for your future.

For full program details please click here.