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San Leandro Mortgage FAQ
Buying a home in San Leandro requires navigating California's competitive real estate market and understanding your financing options. We've compiled answers to the most common mortgage questions from San Leandro homebuyers and investors.
From first-time buyers exploring FHA loans to investors seeking DSCR financing, this guide covers the mortgage basics you need. Our team at SRK Capital helps borrowers throughout Alameda County secure the right financing for their goals.
Whether you're purchasing near Bancroft Avenue, refinancing your current home, or investing in rental properties, understanding your mortgage options helps you make confident decisions. Let's address your most pressing financing questions.
Most mortgage applications close in 30-45 days from acceptance to funding. Pre-approval takes 1-3 days. Timeline varies based on loan type, documentation completeness, and property appraisal scheduling.
FHA loans may accept scores as low as 580 with 3.5% down. Conventional loans typically require 620 minimum. Higher scores unlock better rates and more loan options.
Down payment requirements vary by loan type. FHA requires 3.5%, conventional loans offer 3-5% options, VA and USDA allow zero down for eligible buyers. Rates vary by borrower profile and market conditions.
Most lenders require two years of tax returns, recent pay stubs, W-2s, bank statements, and photo ID. Self-employed borrowers may need additional business documentation or can explore bank statement loan options.
Get pre-approved. Pre-qualification is an estimate based on your word. Pre-approval involves verification of your finances and gives sellers confidence in your offer in competitive markets.
FHA loans allow lower credit scores and smaller down payments but require mortgage insurance regardless of down payment. Conventional loans offer more flexibility and PMI drops at 20% equity.
California offers CalHFA programs with down payment assistance and competitive rates. FHA loans remain popular for first-timers. We can help you explore options that match your situation.
Closing costs typically range 2-5% of the purchase price, including appraisal, title, escrow, and lender fees. Buyers and sellers can negotiate who covers specific costs in the purchase agreement.
Yes. Self-employed buyers can use bank statement loans, profit and loss statement loans, or 1099 loans. These programs verify income through deposits rather than traditional tax returns.
PMI is private mortgage insurance required on conventional loans below 20% down. Avoid it by putting 20% down, using piggyback loans, or choosing VA/USDA loans that don't require PMI.
ARMs offer lower initial rates for a fixed period, then adjust based on market indexes. Common options include 5/1, 7/1, and 10/1 ARMs, where the first number indicates fixed years.
Jumbo loans exceed conforming loan limits set by federal agencies. In most California counties, loans above $806,500 are jumbo. They typically require higher credit scores and larger down payments.
Yes, eligible veterans, active military, and qualifying spouses can use VA loans with zero down payment and no PMI. VA loans are excellent options for eligible buyers in Alameda County.
DSCR loans qualify investors based on rental property income rather than personal income. Ideal for investors with multiple properties or those who don't want to document personal income.
Most lenders prefer your housing payment stays below 28% of gross monthly income, with total debt under 43%. Your specific budget depends on income, debts, down payment, and loan type.
Pre-qualification estimates what you might borrow based on self-reported information. Pre-approval involves document verification and credit checks, providing a conditional commitment from the lender.
Yes, ITIN loans allow borrowers without Social Security numbers to purchase homes. These programs verify income and creditworthiness through alternative documentation methods.
Interest-only loans let you pay just interest for a set period, reducing initial payments. After the interest-only period ends, payments increase to include principal or the loan requires refinancing.
Bridge loans provide short-term financing to purchase a new home before selling your current one. They typically last 6-12 months and help buyers avoid contingent offers in competitive markets.
Points are upfront fees paid to reduce your interest rate. One point equals 1% of the loan amount. Buying points makes sense if you plan to keep the loan long enough to recoup the cost through savings.
Yes, investment property loans are available but typically require larger down payments (15-25%) and have higher rates than primary residence loans. DSCR and portfolio loans offer flexible options for investors.
Interest rate is the cost of borrowing. APR includes the rate plus fees like points and closing costs, showing the true annual cost. Compare APRs when shopping lenders.
Bank statement loans verify income through 12-24 months of personal or business bank deposits. Lenders calculate average monthly deposits to determine qualifying income without tax returns.
Asset depletion loans qualify borrowers based on liquid assets like stocks, bonds, and savings accounts. The lender divides assets by the loan term to create qualifying income figures.
Yes, FHA 203k and conventional renovation loans let you finance both purchase and repairs in one loan. Construction loans work for major rebuilds or ground-up projects.
Escrow is a neutral third party that holds funds and documents during the transaction. In California, escrow companies coordinate the closing, ensuring all conditions are met before releasing funds.
California property taxes are roughly 1% of purchase price plus voter-approved bonds. Alameda County collects semi-annually. Lenders typically collect monthly tax payments in your mortgage payment through escrow.
A rate lock guarantees your interest rate for a set period, typically 30-60 days. Lock when you're satisfied with the rate and expect closing within the lock period to avoid market fluctuations.
Yes, student loans are included in your debt-to-income ratio calculations. Lenders use either your actual monthly payment or a percentage of the outstanding balance to qualify you.
Home equity loans provide a lump sum with fixed rates. HELOCs work like credit cards with variable rates, letting you draw funds as needed during the draw period.
FHA loans may be available 2 years after Chapter 7 bankruptcy discharge. Conventional loans typically require 4 years. Timeline varies based on circumstances and loan type chosen.
Foreign national loans help non-U.S. citizens purchase property without SSN or U.S. credit history. These programs typically require larger down payments and verify income through alternative documentation.
Some government-backed loans like FHA and VA allow assumption with lender approval. Most conventional loans have due-on-sale clauses preventing assumption. Assumption may save on costs if the existing rate is favorable.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.