Question 1

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

Accepted Answer

FHA loans require 580 for 3.5% down. Conventional loans need 620 minimum. USDA loans accept 640 for faster approvals in eligible Kerman zones.

Question 2

How much do I need for a down payment in Kerman?

Accepted Answer

FHA requires 3.5% down. Conventional loans allow 3% for first-time buyers. USDA loans offer zero down for eligible properties and income levels.

Question 3

What loan types work best for Kerman buyers?

Accepted Answer

FHA and conventional loans dominate. USDA works if you meet income caps. Self-employed borrowers often use bank statement or 1099 programs.

Question 4

Does Kerman qualify for USDA loans?

Accepted Answer

Some Kerman areas qualify for USDA financing. We verify eligibility by address and check income limits for your household size.

Question 5

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

Accepted Answer

Most loans close in 21-30 days. FHA and USDA take slightly longer due to appraisal requirements. Cash-out refis can stretch to 35 days.

Question 6

What documents do I need for a mortgage application?

Accepted Answer

You need two years of tax returns, two months of bank statements, and 30 days of pay stubs. Self-employed borrowers may use bank statements instead.

Question 7

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

Accepted Answer

Yes. Bank statement loans use 12-24 months of deposits to prove income. We also offer 1099 and P&L programs for business owners.

Question 8

What are closing costs in Kerman?

Accepted Answer

Expect 2-3% of the purchase price. On a $300,000 home, that's $6,000-$9,000. Lender fees, title, escrow, and prepaid taxes all factor in.

Question 9

Can the seller pay my closing costs?

Accepted Answer

Yes. FHA allows up to 6% seller concessions. Conventional loans cap at 3% for low down payment buyers. We negotiate this in your offer.

Question 10

What's the difference between FHA and conventional loans?

Accepted Answer

FHA requires lower credit and smaller down payments but charges mortgage insurance for life. Conventional loans drop PMI at 20% equity.

Question 11

Do I have to pay PMI in Kerman?

Accepted Answer

Yes, unless you put 20% down on conventional or use VA/USDA. FHA charges upfront and monthly mortgage insurance regardless of down payment size.

Question 12

Can I use gift funds for my down payment?

Accepted Answer

Yes. FHA and conventional loans allow gifts from family. You need a signed letter and proof the donor has the funds available.

Question 13

What's a DSCR loan and who uses it in Kerman?

Accepted Answer

DSCR loans qualify based on rental income, not your W-2. Investors buying Kerman rentals use these when personal income doesn't support traditional approval.

Question 14

How does an adjustable-rate mortgage work?

Accepted Answer

ARMs offer lower initial rates that adjust after a fixed period. A 5/1 ARM locks for five years, then adjusts annually based on market indexes.

Question 15

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

Accepted Answer

30-year loans have lower payments but higher total interest. 15-year loans build equity faster and save on interest if you can afford the payment.

Question 16

Can I refinance if rates drop later this year?

Accepted Answer

Yes. If rates decline, refinancing can lower your payment. We track your loan and reach out when refinancing makes financial sense.

Question 17

What's the best loan for a first-time buyer in Kerman?

Accepted Answer

FHA works for lower credit and minimal savings. Conventional with 3% down beats FHA if you have 680+ credit and want to drop PMI later.

Question 18

Do I need to escrow property taxes and insurance?

Accepted Answer

FHA requires escrow. Conventional loans waive escrow if you put 20% down. Most lenders prefer escrow accounts to protect their collateral.

Question 19

Can I buy a fixer-upper in Kerman with FHA?

Accepted Answer

FHA requires homes to be habitable. If repairs are minor, we can close with a repair escrow. Big projects need FHA 203k rehab loans.

Question 20

What's a rate lock and when should I use it?

Accepted Answer

A rate lock guarantees your rate for 30-60 days while you close. Lock when you're in contract and satisfied with the rate offered.

Question 21

How much income do I need to qualify for a mortgage?

Accepted Answer

Your total debt payments, including the new mortgage, should stay under 43-50% of gross monthly income. FHA allows higher ratios with strong credit.

Question 22

Can I use rental income to qualify for a mortgage?

Accepted Answer

Yes. Lenders count 75% of projected rent on investment properties. For a duplex you'll occupy, we can use rental income from the other unit.

Question 23

What happens if I miss a mortgage payment?

Accepted Answer

One late payment dings your credit and triggers fees. Chronic missed payments lead to foreclosure. Contact your lender immediately if you face hardship.

Question 24

Can I get a mortgage with past credit issues?

Accepted Answer

Yes, depending on the issue. Bankruptcies need 2-4 years of seasoning. Foreclosures require 3-7 years. FHA is more forgiving than conventional.

Question 25

What's a debt-to-income ratio and why does it matter?

Accepted Answer

DTI divides monthly debt by gross income. A 43% DTI means $4,300 in debts on $10,000 income. Lower DTI improves approval odds and rates.

Question 26

Do I need a real estate agent to buy in Kerman?

Accepted Answer

Not legally required, but agents know Kerman inventory and negotiate better terms. The seller typically pays their commission, not you.

Question 27

Can I lock a rate before I find a house?

Accepted Answer

Most lenders won't lock without a signed contract. Some offer float-down options if rates improve before closing, but not all programs allow it.

Question 28

What's an appraisal and why do I need one?

Accepted Answer

Appraisals confirm the home's value matches the purchase price. Lenders require them to avoid lending more than the property is worth.

Question 29

Can I cancel a mortgage after signing?

Accepted Answer

Refinances have a 3-day rescission period. Purchase loans don't. Once you close on a purchase, you own the home and owe the mortgage.

Question 30

What are discount points and should I pay them?

Accepted Answer

Points are upfront fees to lower your rate. One point costs 1% of the loan. They make sense if you plan to keep the loan 5+ years.

Question 31

How does SRK CAPITAL find me the best rate?

Accepted Answer

We shop your scenario across 200+ wholesale lenders. You get one application and multiple competitive quotes, not just what one bank offers.

Question 32

Can I get a mortgage if I have an ITIN instead of a Social Security number?

Accepted Answer

Yes. ITIN loans work for borrowers without Social Security numbers. These programs require larger down payments and verify income through alternative documentation.

Question 33

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

Accepted Answer

Jumbo loans exceed conforming limits, currently $806,500 for most of California. Kerman homes rarely hit this threshold. Rates vary by borrower profile.

Question 34

Can I use crypto assets to qualify for a mortgage?

Accepted Answer

Some non-QM lenders now accept verified cryptocurrency holdings. These programs work for borrowers with significant digital assets seeking portfolio-based qualification.

Kerman Mortgage FAQs — Your Central Valley Home Loan Questions Answered