San Ramon Mortgage FAQs: Your Questions Answered by Local Experts

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

Minimum credit scores vary by loan type. FHA loans accept scores as low as 580, conventional loans typically need 620+, and jumbo loans often require 680-700+. Some specialized programs work with lower scores.

Most purchase transactions close in 30-45 days. Refinances may take 30-40 days. Complex loans or properties can extend timelines. Pre-approval speeds up your offer process significantly.

Standard documents include two years of tax returns, recent pay stubs, W-2s, bank statements, and identification. Self-employed borrowers may need profit and loss statements. Requirements vary by loan program.

Many San Ramon properties exceed conforming loan limits, requiring jumbo financing. Jumbo loans handle amounts above $766,550 in most California counties. These loans require stronger financial profiles and larger down payments.

FHA loans require lower down payments and credit scores but include mortgage insurance. Conventional loans offer better rates for qualified borrowers and more flexible property types. Both work well in San Ramon.

Absolutely. Self-employed buyers can use bank statement loans, 1099 loans, or profit and loss statement programs. These alternatives verify income through deposits rather than traditional tax returns.

Closing costs typically range from 2-5% of the loan amount. This includes appraisal fees, title insurance, escrow fees, and lender charges. Costs vary based on property price and loan type.

Private mortgage insurance applies when you put down less than 20% on a conventional loan. FHA loans require mortgage insurance regardless of down payment. PMI costs vary by credit score and loan amount.

DSCR loans qualify investors based on rental income rather than personal income. The property must generate enough rent to cover the mortgage. These work well for San Ramon investment properties.

Yes, VA loans are available for eligible veterans and service members in San Ramon. These loans offer 0% down payment, no PMI, and competitive rates. VA loans work on most property types.

ARMs offer lower initial rates that adjust after a fixed period. Common options include 5/1, 7/1, and 10/1 ARMs. These can benefit buyers planning shorter ownership periods or expecting income increases.

Bridge loans provide short-term financing to buy before selling your current home. They use equity from your existing property as collateral. These help competitive San Ramon buyers avoid sale contingencies.

Required income varies significantly by property price and down payment. Lenders typically want housing costs below 28% of gross income and total debts below 43-50%. Rates vary by borrower profile and market conditions.

Yes, investor loans specifically serve rental property purchases. Options include DSCR loans, conventional investor loans, and portfolio products. Investment properties require larger down payments than owner-occupied homes.

Bank statement loans verify income through 12-24 months of personal or business bank deposits. They serve self-employed borrowers who write off substantial business expenses. Rates and terms remain competitive.

First-time buyers can access FHA loans with 3.5% down, conventional loans with 3% down, and various county programs. Some offer down payment assistance or reduced rates for qualified buyers.

Appraisals typically cost $500-800 for standard homes and $800-1,500+ for larger or complex properties. Jumbo loans may require two appraisals. The lender orders the appraisal after loan approval.

Interest-only loans allow paying just interest for an initial period, reducing monthly payments. Principal payments begin after the interest-only term ends. These suit investors and high-income borrowers managing cash flow.

Yes, foreign national loans serve non-U.S. citizens buying California real estate. These programs require larger down payments and focus on the property value. U.S. credit history is not required.

Jumbo loans exceed conforming limits of $766,550. Many San Ramon homes require jumbo financing due to higher property values. These loans have stricter qualification standards and competitive rates for strong borrowers.

ITIN loans serve borrowers without Social Security numbers using Individual Taxpayer Identification Numbers. These programs verify income through tax returns and bank statements. Down payment requirements typically start at 15-20%.

Dougherty Valley, Crow Canyon, and areas near Bishop Ranch attract many buyers. Each neighborhood offers different price points and amenities. Your mortgage options remain consistent across San Ramon locations.

Pre-approval carries more weight than pre-qualification. Pre-approval involves document verification and credit checks, providing accurate buying power. San Ramon's competitive market favors pre-approved buyers.

Refinancing makes sense when rates drop or you need to access equity. Options include rate-and-term refinances, cash-out refinances, and equity loans. Compare closing costs against long-term savings.

Hard money loans provide fast, short-term financing for fix-and-flip projects or challenging situations. These asset-based loans focus on property value over credit. Rates are higher but approval is quick.

Lenders divide your monthly debt payments by gross income to calculate DTI. Most programs accept 43-50% DTI ratios. Lower ratios improve approval odds and access to better rates.

Asset depletion loans qualify borrowers using investment accounts rather than employment income. Lenders divide total assets by 360 months to calculate qualifying income. These suit retirees and high-net-worth individuals.

Second home purchases require at least 10% down on conventional loans. Lenders verify you can afford both properties simultaneously. Interest rates may be slightly higher than primary residence loans.

Underwriting involves detailed review of your finances, credit, and the property. Underwriters verify income, assets, and employment while assessing risk. This process typically takes 1-2 weeks.

FHA loans require 3.5% down, conventional loans offer 3% down options, and VA/USDA loans need 0% down. Each program has specific eligibility requirements. Compare insurance costs when choosing.

HELOCs provide revolving credit lines secured by home equity. You draw funds as needed during a 10-year draw period, then repay over 20 years. Rates adjust with the market.

Compare annual percentage rates rather than just interest rates. APR includes fees and closing costs. Also consider loan terms, points, and prepayment penalties. Rates vary by borrower profile and market conditions.

Rate locks guarantee your interest rate for 30-60 days while closing your loan. Lock when you have a signed purchase contract. Extended locks may cost extra fees.

Most loan programs accept gift funds from family members for down payments and closing costs. Donors must provide gift letters confirming the money doesn't require repayment. Documentation requirements vary by program.