Dublin Mortgage FAQs: Your Questions Answered by Local Experts

Pre-approval typically takes 1-3 business days with complete documentation. Full loan approval through underwriting usually requires 3-4 weeks, though this varies by lender and loan complexity.

FHA loans accept scores as low as 580 with 3.5% down. Conventional loans typically require 620 or higher. Better scores unlock lower rates and more favorable terms.

Down payments range from 0% for VA loans to 3% for conventional and 3.5% for FHA loans. Jumbo loans in Dublin often require 10-20% depending on the property price.

A jumbo loan exceeds conforming loan limits set by Fannie Mae and Freddie Mac. In 2024, loans above $766,550 in Alameda County typically require jumbo financing with stricter qualification standards.

Yes, FHA loans are popular in Dublin for first-time buyers. They allow 3.5% down with a 580 credit score and accept higher debt-to-income ratios than conventional loans.

Expect to provide two years of tax returns, recent pay stubs, two months of bank statements, and employment verification. Self-employed borrowers need additional business documentation.

Pre-qualification is an estimate based on self-reported information. Pre-approval involves document verification and credit checks, giving you a conditional commitment that strengthens your offer.

First-time buyers can access FHA loans with low down payments, conventional 97% financing, and VA loans if eligible. Alameda County may also offer down payment assistance programs.

DSCR loans qualify you based on the rental income the property generates, not your personal income. Lenders typically require a debt service coverage ratio of 1.0 or higher.

Private mortgage insurance protects lenders when you put down less than 20%. You can avoid it by making a 20% down payment or using piggyback financing with a second loan.

Bank statement loans let self-employed borrowers qualify using 12-24 months of business bank deposits instead of tax returns. This works well for business owners who write off significant expenses.

Closing costs in Alameda County typically run 2-5% of the purchase price. These include lender fees, title insurance, escrow fees, appraisal costs, and prepaid property taxes.

ARMs offer lower initial rates that adjust after a fixed period. A 5/1 ARM stays fixed for five years, then adjusts annually based on market indices plus a margin.

Your DTI compares monthly debt payments to gross income. Most lenders prefer 43% or lower for conventional loans, though FHA loans may accept up to 50% with compensating factors.

Yes, foreign national loans allow non-U.S. citizens to purchase California real estate. These require larger down payments, typically 30-40%, and have different documentation requirements.

ITIN loans let borrowers without Social Security numbers qualify using an Individual Taxpayer Identification Number. These work for tax-paying residents building credit in the United States.

VA loans offer 0% down payment, no PMI, and competitive rates for eligible service members and veterans. Alameda County has an active military community that uses these benefits regularly.

Bridge loans provide short-term financing when you need to buy a new home before selling your current one. They typically last 6-12 months with higher rates than traditional mortgages.

Yes, lenders include student loans in your debt-to-income calculation. They typically use either the actual payment, 1% of the balance, or the payment on your credit report.

Interest-only loans let you pay just the interest for an initial period, usually 5-10 years. After that, payments increase to cover principal. These suit buyers expecting income growth.

Hard money loans are short-term, asset-based financing used for fix-and-flip projects or time-sensitive purchases. They fund quickly but carry higher rates and shorter terms than traditional loans.

Asset depletion loans use your investment accounts, savings, and retirement funds to calculate qualifying income. Lenders divide eligible assets by the loan term to determine monthly income.

Yes, if the condo project is FHA-approved. The building must meet specific requirements regarding owner-occupancy ratios, financial reserves, and insurance coverage.

A rate lock guarantees your interest rate for 30-60 days while your loan processes. Lock when you're satisfied with the rate, as market changes won't affect your locked terms.

A home equity line of credit lets you borrow against your home equity as needed during a draw period. You pay interest only on what you use, with flexible repayment during the draw phase.

FHA loans require lower credit scores and down payments but include mortgage insurance for the loan's life. Conventional loans need higher scores but let you drop PMI at 20% equity.

P&L loans let self-employed borrowers qualify using year-to-date profit and loss statements prepared by a CPA. This works when your recent income exceeds what tax returns show.

Discount points let you pay upfront to lower your interest rate. Each point costs 1% of the loan amount and typically reduces your rate by 0.25%. They make sense if you plan to stay long-term.

Reverse mortgages let homeowners 62 and older convert home equity into cash without monthly payments. The loan is repaid when you sell, move, or pass away.

Portfolio ARMs are adjustable rate mortgages held by the lender rather than sold to Fannie Mae or Freddie Mac. They offer flexible underwriting for unique financial situations.

Yes, once you reach 20% equity through payments or appreciation, you can refinance to eliminate PMI. An appraisal confirms your current home value and equity position.

Construction loans provide funds in stages as your home is built. Interest-only payments apply during construction, then the loan converts to a standard mortgage when building completes.

Check if your loan amount exceeds Alameda County's conforming limit. Jumbo loans require stronger credit, larger down payments, and more reserves but finance higher-priced properties.

Most lenders want two years of consistent employment in the same field. Job changes are acceptable if they show career progression. Self-employed borrowers typically need two years of business history.

FHA loans may be available two years after Chapter 7 bankruptcy discharge or one year into a Chapter 13 repayment plan. Conventional loans typically require four years after Chapter 7.

Escrow is the neutral third party that holds funds and documents throughout the transaction. Closing is when you sign final papers, transfer ownership, and complete the purchase.

Rates vary by borrower profile and market conditions. Your credit score, down payment, loan type, and property location all influence your rate. Market factors include Federal Reserve policy and investor demand.

Earnest money shows your serious intent to purchase. In Alameda County, buyers typically deposit 1-3% of the purchase price. This amount applies to your down payment at closing.

Yes, 1099 loans are designed for independent contractors and gig workers. These programs use your 1099 income forms to establish qualifying income without requiring full tax returns.

A low appraisal means the home's value is less than your offer. You can renegotiate the price, increase your down payment to cover the gap, or cancel the contract if you have an appraisal contingency.