Question 1

What credit score do I need to buy a home in Clovis?

Accepted Answer

FHA loans accept 580 credit scores with 3.5% down. Conventional loans start at 620, but rates improve significantly above 700.

Question 2

How much down payment do I need in Clovis?

Accepted Answer

VA and USDA loans require zero down. FHA needs 3.5%, conventional starts at 3% for first-time buyers, and jumbo loans typically need 10-20%.

Question 3

What's the typical home price range in Clovis?

Accepted Answer

Starter homes run $350K-$450K. Established neighborhoods sit at $500K-$700K, while custom builds and larger properties often exceed $800K.

Question 4

How long does it take to close on a Clovis home?

Accepted Answer

Most purchase loans close in 21-30 days. Cash-out refinances take 30-45 days due to appraisal requirements and title work.

Question 5

Can I buy in Clovis if I'm self-employed?

Accepted Answer

Bank statement loans use 12-24 months of deposits to calculate income. You skip tax returns entirely and qualify on actual cash flow.

Question 6

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 buyers need two years tax returns, 30 days paystubs, and 60 days bank statements. Self-employed borrowers use alternative documentation based on loan type.

Question 7

Are there special programs for first-time buyers in Clovis?

Accepted Answer

CalHFA offers down payment assistance with 3% conventional loans. FHA loans with 3.5% down work well for buyers with limited savings.

Question 8

What neighborhoods in Clovis are most popular with buyers?

Accepted Answer

Old Town draws buyers wanting walkability and character. Northwest Clovis offers newer construction, while areas near Clovis North High School attract families.

Question 9

Do I need flood or fire insurance in Clovis?

Accepted Answer

Properties near canals or waterways may require flood insurance. Foothills-adjacent homes need fire coverage with extended wildfire protection.

Question 10

What's the difference between FHA and conventional loans?

Accepted Answer

FHA accepts lower credit scores but requires mortgage insurance for life of loan. Conventional drops PMI at 20% equity and offers better rates above 740 credit.

Question 11

Can I use a VA loan to buy an investment property in Clovis?

Accepted Answer

VA loans require owner occupancy. You need a conventional or DSCR loan for rentals, even if you're a veteran.

Question 12

What income do I need to afford a $500K home in Clovis?

Accepted Answer

With 10% down at current rates, expect $110K-$130K annual income depending on debts. Lower down payments require higher income to offset larger loan amounts.

Question 13

How does the DSCR loan work for Clovis rental properties?

Accepted Answer

Lenders approve based on rent collected versus mortgage payment. You need no personal income verification if property cash flows at 1.0 or higher debt service coverage.

Question 14

What are closing costs on a Clovis purchase?

Accepted Answer

Expect 2-3% of purchase price including appraisal, title, escrow, and lender fees. Sellers often contribute 1-2% in competitive markets.

Question 15

Should I pay points to lower my rate?

Accepted Answer

Points make sense if you hold the loan 5+ years. Break-even usually hits at 3-4 years based on upfront cost versus monthly savings.

Question 16

Can I buy a fixer-upper in Clovis with a mortgage?

Accepted Answer

FHA 203k and conventional renovation loans fund purchase plus repairs in one loan. Hard money works for severe rehabs that don't meet standard loan requirements.

Question 17

What's the maximum loan amount in Clovis for conventional financing?

Accepted Answer

Conforming limit is $832,750 as of 2026. Anything above requires a jumbo loan with stricter qualification and typically higher rates.

Question 18

How do adjustable rate mortgages work?

Accepted Answer

ARMs offer lower initial rates fixed for 5, 7, or 10 years, then adjust annually. They fit buyers who plan to move or refinance within the fixed period.

Question 19

Can I qualify using cryptocurrency assets?

Accepted Answer

Some non-QM lenders now accept verified crypto holdings for income and reserves. You'll need documented ownership and stable value history.

Question 20

What happens if interest rates drop after I lock?

Accepted Answer

Rate locks protect against increases but don't float down automatically. Some lenders offer one-time float-down options for a fee if rates fall significantly.

Question 21

Do I need a 20% down payment to avoid PMI?

Accepted Answer

Conventional loans drop PMI at 20% equity. FHA charges mortgage insurance regardless of down payment, while VA and USDA have funding fees instead.

Question 22

Can I buy a second home in Clovis if I already own one?

Accepted Answer

You need 10% down minimum and must prove ability to carry both mortgages. Lenders verify the property won't be rented out regularly.

Question 23

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

Accepted Answer

Bridge loans let you buy before selling your current home. Rates run higher and terms last 6-12 months until your existing property sells.

Question 24

How does the bank statement loan calculate my income?

Accepted Answer

Lenders average your monthly deposits over 12-24 months, then deduct business expenses at a standard percentage. Net amount determines qualifying income.

Question 25

Are there loans for foreign nationals buying in Clovis?

Accepted Answer

Foreign national loans require 20-30% down and don't need U.S. credit history or SSN. Rates run 0.5-1% higher than conventional programs.

Question 26

What if I have a 1099 income but low tax returns?

Accepted Answer

1099 loans use your gross 1099 income without tax return deductions. You qualify on what you actually earned rather than what you reported to IRS.

Question 27

Can I use gift funds for my down payment?

Accepted Answer

FHA, VA, and conventional loans allow gifted down payments from family. You need a signed letter stating funds are a gift, not a loan.

Question 28

What's the benefit of a HELOC versus a cash-out refinance?

Accepted Answer

HELOCs keep your first mortgage rate intact and charge interest only on what you draw. Cash-out refinances replace your entire loan at current rates.

Question 29

Do I qualify for USDA financing in Clovis?

Accepted Answer

Most of Clovis sits outside USDA eligible zones. Rural areas near city limits may qualify with zero down and income limits based on household size.

Question 30

How does PMI get removed from my conventional loan?

Accepted Answer

PMI drops automatically at 78% loan-to-value or by request at 80%. You need on-time payments and sometimes a new appraisal to confirm value.

Question 31

What happens if my appraisal comes in low?

Accepted Answer

You can pay the difference in cash, renegotiate price with seller, or cancel the deal. Low appraisals happen more often in rapidly appreciating markets.

Question 32

Can I refinance an investment property in Clovis?

Accepted Answer

Investor cash-out refinances max at 75% LTV for single units. DSCR refinances don't require income docs if property cash flows cover the new payment.

Question 33

What credit issues prevent mortgage approval?

Accepted Answer

Recent bankruptcy, foreclosure, or collections need seasoning periods. FHA requires 2 years post-bankruptcy, conventional needs 4 years in most cases.

Question 34

How do I know if I should buy now or wait for rates to drop?

Accepted Answer

Rate projections suggest potential cuts later this year but no immediate changes. Waiting means competing with more buyers if rates fall sharply.

Clovis Mortgage FAQs: Your Complete Guide to Home Financing