Question 1

What's the typical down payment for a Moraga home?

Accepted Answer

Most Moraga buyers put down 20% on jumbo loans to avoid PMI. Conventional loans allow 3-5% down if you stay under conforming limits, but that's rare here.

Question 2

How much income do I need to buy in Moraga?

Accepted Answer

Lenders cap your total debt at 43-50% of gross income depending on loan type. For a $1.5M home with 20% down, expect to show around $25K monthly income minimum.

Question 3

What credit score do I need for a Moraga mortgage?

Accepted Answer

Conventional loans require 620 minimum. Jumbo lenders prefer 700+ for best rates, though some approve 660-680 with higher down payments.

Question 4

How long does mortgage approval take in Moraga?

Accepted Answer

Standard purchase loans close in 21-30 days. Jumbo and bank statement loans sometimes need 30-45 days for extra underwriting reviews.

Question 5

Are FHA loans realistic for Moraga buyers?

Accepted Answer

FHA loan limits in Contra Costa cap at $1,249,125 for 2026. That prices out most Moraga listings, making conventional or jumbo your likely path.

Question 6

What documents do I need for pre-approval?

Accepted Answer

W-2 buyers need two years tax returns, recent paystubs, and bank statements. Self-employed borrowers add business returns and possibly profit-loss statements.

Question 7

Can I buy a Moraga home if I'm self-employed?

Accepted Answer

Yes. We use bank statement loans, 1099 programs, or profit-loss loans when tax returns don't show enough income. Requires 12-24 months statements typically.

Question 8

What are typical closing costs in Moraga?

Accepted Answer

Budget 2-5% of purchase price. On a $1.5M home, expect $30K-$75K covering lender fees, title insurance, appraisal, escrow, and pre-paids.

Question 9

Do I need flood insurance in Moraga?

Accepted Answer

Most Moraga properties aren't in FEMA flood zones, but lenders require verification. Hillside homes sometimes need additional hazard coverage.

Question 10

What's the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit—sellers take it seriously.

Question 11

Should I choose a 15-year or 30-year mortgage?

Accepted Answer

30-year loans offer lower payments and flexibility. Choose 15-year if you want equity faster and can handle payments 40-50% higher.

Question 12

What is PMI and how do I avoid it?

Accepted Answer

Private mortgage insurance costs 0.3-1.5% annually on conventional loans under 20% down. Put 20% down or use lender-paid PMI options to skip it.

Question 13

Can I get a mortgage with recent credit issues?

Accepted Answer

Bankruptcies need 2-4 years seasoning depending on loan type. Foreclosures require 3-7 years. Some portfolio lenders work with shorter timelines.

Question 14

What's a jumbo loan and when do I need one?

Accepted Answer

Jumbo loans exceed conforming limits—$832,750 in most counties, $1,249,125 in high-cost areas like Contra Costa. Most Moraga purchases require jumbo financing.

Question 15

How do interest rates vary by loan type?

Accepted Answer

Conventional and jumbo loans offer lowest rates with strong credit. Bank statement and DSCR loans run 0.5-2% higher due to added lender risk. Rates vary by borrower profile and market conditions.

Question 16

What is a DSCR loan and who needs it?

Accepted Answer

DSCR loans approve based on rental income, not personal income. Investors buying Moraga properties use these when they don't want tax returns reviewed.

Question 17

Can I use gift funds for my down payment?

Accepted Answer

Yes, but lenders require a gift letter stating the money doesn't need repayment. FHA allows 100% gift funds; conventional typically requires 5% your own cash.

Question 18

What's an adjustable-rate mortgage and should I consider one?

Accepted Answer

ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years. Makes sense if you plan to sell or refinance before adjustment, especially on jumbos.

Question 19

How much can I afford in Moraga?

Accepted Answer

Lenders approve loans where monthly payment is roughly 28-36% of gross income. Use 7-8x your annual income as a rough ceiling for purchase price.

Question 20

What are mortgage points and should I buy them?

Accepted Answer

One point costs 1% of loan amount and typically lowers your rate 0.25%. Worth buying if you keep the loan 4+ years to recoup the cost.

Question 21

Can I get a mortgage using retirement account assets?

Accepted Answer

Asset depletion loans convert 401k or IRA balances into qualifying income. Lenders typically divide total assets by 60-360 months to calculate monthly income.

Question 22

What is an interest-only mortgage?

Accepted Answer

You pay only interest for 5-10 years, then principal and interest after. Helps high earners manage cash flow but builds no equity initially.

Question 23

How do property taxes affect my mortgage payment?

Accepted Answer

Contra Costa property tax runs about 1.1-1.3% annually. On a $1.5M Moraga home, budget $1,375-1,625 monthly for taxes in your total payment.

Question 24

Can non-US citizens get mortgages in Moraga?

Accepted Answer

Yes. Foreign national loans require 20-40% down and don't need US credit or work authorization. We also offer ITIN loans for tax ID holders.

Question 25

What's a bridge loan and when would I use one?

Accepted Answer

Bridge loans let you buy before selling your current home. Typically 6-12 month terms with higher rates, useful in competitive Moraga market.

Question 26

How does my debt-to-income ratio affect approval?

Accepted Answer

DTI divides monthly debts by gross income. Conventional loans cap around 43-50%, jumbo loans often require under 43%. Lower DTI unlocks better rates.

Question 27

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows 3.5% down and 580 credit but charges lifetime mortgage insurance. Conventional needs 3-20% down, 620 credit, and drops PMI at 20% equity.

Question 28

Can I lock my interest rate before finding a home?

Accepted Answer

Most lenders lock rates for 30-60 days once you have a purchase contract. Some offer float-down options if rates drop before closing.

Question 29

What happens if my appraisal comes in low?

Accepted Answer

You'll need to cover the gap in cash, renegotiate price, or cancel the deal if you have an appraisal contingency. Low appraisals are rare in Moraga's steady market.

Question 30

Do I need an inspection for mortgage approval?

Accepted Answer

Lenders require appraisals but not inspections. Smart buyers always inspect—Moraga's hillside properties can have foundation and drainage issues worth catching early.

Question 31

How do HOA fees affect my mortgage qualification?

Accepted Answer

Lenders add HOA dues to your debt-to-income ratio. Moraga communities with $300-600 monthly HOA fees reduce how much house you qualify for.

Question 32

What's a portfolio ARM and when does it make sense?

Accepted Answer

Portfolio ARMs are held by individual lenders rather than sold to Fannie Mae. Useful for complex income situations or non-standard properties.

Question 33

Can I buy an investment property in Moraga with a mortgage?

Accepted Answer

Yes. Investment property loans require 15-25% down and expect rental income. DSCR loans approve based on property cash flow without income verification.

Question 34

What are common reasons mortgages get denied?

Accepted Answer

Job changes during underwriting, new debt, or undisclosed liabilities kill deals. Also watch credit inquiries—applying for new cards tanks some approvals.

Question 35

How does SRK CAPITAL find me better rates?

Accepted Answer

We submit your scenario to 200+ wholesale lenders simultaneously. Banks compete for your business, driving down rates and fees you'd pay going direct.

Question 36

Should I pay off debt before applying for a mortgage?

Accepted Answer

Paying down cards and car loans drops your DTI and can boost approval odds. Just don't drain savings—lenders want to see reserves after closing.

Question 37

What are Moraga-specific mortgage considerations?

Accepted Answer

Expect jumbo financing, potential fire insurance challenges, and longer commutes that don't hurt values. Saint Mary's College area sees steady buyer demand.

Question 38

Can I refinance soon after buying in Moraga?

Accepted Answer

Wait 6-12 months for best terms. Some lenders allow immediate cash-out refis but charge higher rates. Rate-and-term refis are easier right away.

Question 39

What happens to my mortgage if I lose my job after closing?

Accepted Answer

Nothing changes—the loan is yours. Lenders verify employment right before closing but not after. Focus on making payments to protect your credit.

Question 40

How much should I keep in reserves after closing?

Accepted Answer

Jumbo lenders often require 6-12 months reserves of principal, interest, taxes, and insurance. Budget an extra $15K-$30K beyond your down payment and closing costs.

Your Moraga Mortgage Questions Answered by Local Brokers