Moraga Mortgage FAQs: Your Complete Guide to Home Financing in Contra Costa County

Moraga buyers have access to conventional, FHA, VA, jumbo, and specialized loans including bank statement and DSCR programs. The right option depends on your financial profile, down payment, and property type.

Down payments range from 0% for VA loans to 3% for conventional and FHA loans. Jumbo loans typically require 10-20% down. Your specific requirement depends on the loan type and property price.

Minimum credit scores vary by loan type: FHA accepts 580+, conventional typically requires 620+, and jumbo loans usually need 680+. Higher scores generally unlock better rates.

Most mortgage closings take 30-45 days from application to closing. Timeline depends on loan complexity, documentation completeness, and whether you're purchasing or refinancing.

Standard documents include pay stubs, W-2s, tax returns, bank statements, and ID. Self-employed borrowers may use alternative documentation like bank statements or 1099s depending on the loan program.

Yes, many Moraga properties exceed conventional loan limits and require jumbo financing. These loans offer competitive rates for well-qualified borrowers with strong credit and assets.

DSCR loans qualify based on rental property income rather than personal income. Real estate investors in Moraga use these to purchase or refinance rental properties without traditional employment verification.

Absolutely. Bank statement loans, profit and loss statement loans, and 1099 programs serve self-employed buyers. These programs use business deposits or financial statements instead of W-2s.

FHA loans allow lower credit scores and smaller down payments but require mortgage insurance. Conventional loans offer more flexibility and can eliminate PMI with 20% down.

PMI applies to conventional loans with less than 20% down and FHA loans require mortgage insurance regardless of down payment. VA loans charge a funding fee but no monthly mortgage insurance.

Closing costs typically range from 2-5% of the purchase price. These include lender fees, title insurance, escrow fees, and prepaid items like property taxes and insurance.

VA loans offer 0% down for eligible veterans and active military. USDA loans also offer zero down but availability depends on property location and income limits.

ARMs offer lower initial rates that adjust after a fixed period. Common options include 5/1, 7/1, and 10/1 ARMs where rates remain fixed for 5, 7, or 10 years before adjusting.

Thirty-year mortgages offer lower monthly payments but higher total interest. Fifteen-year loans build equity faster with lower rates but require higher monthly payments.

Points let you pay upfront to lower your interest rate. Each point costs 1% of the loan amount. They make sense if you plan to keep the loan long enough to recoup the cost.

Yes, and pre-approval strengthens your offer significantly. It shows sellers you're a serious buyer and helps you understand your budget before touring properties.

Pre-qualification is an estimate based on basic information. Pre-approval involves document verification and credit review, providing a conditional commitment from the lender.

First-time buyers can access FHA loans with 3.5% down, conventional loans with 3% down, and sometimes state or local down payment assistance programs depending on income.

Bridge loans provide short-term financing to purchase a new home before selling your current one. They're useful in competitive markets when you can't make offers contingent on selling.

Yes. Foreign national loans serve non-U.S. citizens purchasing property. These programs typically require larger down payments and focus on the property's value and borrower's assets.

Home equity lines of credit let you borrow against your home's equity on a revolving basis. You can draw funds as needed during the draw period and only pay interest on what you use.

HELOCs provide revolving credit with variable rates. Home equity loans provide a lump sum with fixed rates and fixed payments over a set term.

Interest-only mortgages lower initial payments by not requiring principal payments for a set period. They work well for buyers expecting income growth or those managing cash flow strategically.

These loans qualify borrowers based on assets rather than income. Lenders calculate qualifying income by dividing total assets by the loan term, ideal for retirees or those with substantial savings.

Yes. ITIN loans serve borrowers without Social Security numbers. These programs evaluate creditworthiness using alternative documentation and payment histories.

Investor loans finance non-owner-occupied properties and typically require larger down payments and reserves. Rates may be slightly higher than primary residence loans.

Portfolio ARMs are adjustable-rate mortgages held by the lender rather than sold to investors. They often offer more flexible underwriting for unique situations or properties.

Hard money loans provide fast, short-term financing based primarily on property value. They're used for fix-and-flip projects or when speed matters more than rate.

Construction loans fund new home builds or major renovations. They disburse in stages as construction progresses and typically convert to permanent financing upon completion.

Yes. Refinancing can lower your rate, shorten your term, or access equity through cash-out refinancing. Rates vary by borrower profile and current market conditions.

PMI protects lenders when you put less than 20% down on conventional loans. Avoid it by making a 20% down payment or using piggyback financing with a second mortgage.

Lenders typically want housing costs below 28% of gross income and total debts below 43-50%. Some loan programs allow higher ratios with strong credit and reserves.

Bank statement loans use 12-24 months of business bank deposits to calculate income. This works well for borrowers who write off significant business expenses.

Yes. Homeowners 62 and older can convert home equity into cash through reverse mortgages. No monthly payments are required as long as you live in the home.

Conforming loans meet Fannie Mae and Freddie Mac guidelines and fall within their loan limits. They typically offer competitive rates and standardized requirements.

Compare rates, fees, and service quality. Look for lenders experienced with your property type and loan program who can close on time and communicate clearly throughout the process.