Question 1

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

Accepted Answer

FHA loans start at 580 credit. Conventional loans typically need 620 minimum, though some portfolio lenders go lower for strong files.

Question 2

How much down payment is required in Calexico?

Accepted Answer

FHA requires 3.5% down. Conventional can go as low as 3% for first-time buyers. VA and USDA offer zero down for qualified applicants.

Question 3

Do lenders treat Calexico differently than other California cities?

Accepted Answer

Some national lenders avoid Imperial County due to appraisal challenges. We work with regional and portfolio lenders who actively lend here.

Question 4

What loan programs work best for first-time buyers in Calexico?

Accepted Answer

FHA is the most common due to low down payment and flexible credit. USDA can work if you buy outside city limits in eligible rural zones.

Question 5

Can I use a VA loan in Calexico?

Accepted Answer

Yes. VA loans are widely used here and offer zero down with no PMI. Processing can take longer due to VA appraisal requirements.

Question 6

How long does it take to close a mortgage in Calexico?

Accepted Answer

Expect 30-45 days for most conventional and FHA loans. VA and USDA can stretch to 50 days due to additional inspections and appraisal reviews.

Question 7

What documents do I need to apply for a mortgage?

Accepted Answer

Two years of tax returns, two months of bank statements, 30 days of pay stubs, and W-2s. Self-employed borrowers need full business returns and a P&L.

Question 8

Are there special programs for self-employed buyers in Calexico?

Accepted Answer

Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and profit-loss statement programs for business owners.

Question 9

What are closing costs in Calexico?

Accepted Answer

Expect 2-5% of the purchase price. That includes lender fees, title insurance, escrow, appraisal, and county recording fees.

Question 10

Can the seller pay my closing costs?

Accepted Answer

Yes. FHA allows up to 6% seller concessions. Conventional loans cap it at 3-9% depending on your down payment amount.

Question 11

What is PMI and when do I have to pay it?

Accepted Answer

Private mortgage insurance kicks in when you put down less than 20% on a conventional loan. It costs 0.3-1.5% of the loan amount annually.

Question 12

How do I remove PMI?

Accepted Answer

Conventional PMI drops off at 78% loan-to-value automatically. You can request removal at 80% LTV with an appraisal showing sufficient equity.

Question 13

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows lower credit scores and smaller down payments but charges upfront and monthly mortgage insurance. Conventional has stricter credit rules but cheaper insurance.

Question 14

Should I choose a fixed-rate or adjustable-rate mortgage?

Accepted Answer

Fixed rates lock your payment for 15-30 years. ARMs offer lower initial rates but adjust after 5-10 years based on market conditions.

Question 15

What is a DSCR loan and who uses it?

Accepted Answer

DSCR loans approve based on rental income, not personal income. Investors buying Calexico rentals use these to avoid W-2 and tax return requirements.

Question 16

Can I buy a rental property in Calexico with a mortgage?

Accepted Answer

Yes. You'll need 15-25% down depending on the loan type. DSCR and portfolio loans work well for investors with multiple properties.

Question 17

Do I qualify for a mortgage if I'm self-employed?

Accepted Answer

Self-employed buyers qualify with two years of tax returns showing stable income. Bank statement and 1099 loans offer alternatives if your returns show losses.

Question 18

What is an ITIN loan?

Accepted Answer

ITIN loans let non-citizens without Social Security numbers buy homes using an Individual Taxpayer Identification Number. Rates run slightly higher than conventional.

Question 19

Can foreign nationals buy property in Calexico?

Accepted Answer

Yes. Foreign national loans require 20-30% down and allow non-U.S. citizens to purchase. We arrange financing for cross-border buyers regularly.

Question 20

What neighborhoods in Calexico are easiest to finance?

Accepted Answer

Newer subdivisions near Highway 98 appraise cleanly and close faster. Older areas closer to the border sometimes face appraisal delays.

Question 21

Are property values stable in Calexico?

Accepted Answer

Calexico prices move with regional employment and border activity. Values are lower than coastal California but show steadier appreciation over time.

Question 22

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

Accepted Answer

Most loans cap DTI at 43-50%. FHA and VA stretch higher with strong credit. Your DTI divides monthly debts by gross monthly income.

Question 23

Can I get a mortgage with collections or charge-offs?

Accepted Answer

FHA allows collections under $2,000 without requiring payoff. Conventional loans often need paid collections or payment plans in place before closing.

Question 24

What's the minimum loan amount in Calexico?

Accepted Answer

Most lenders set $50,000-$75,000 minimums. Smaller loan amounts face higher relative costs, making conventional loans less competitive.

Question 25

Do I need reserves to buy a home?

Accepted Answer

Reserves aren't required for primary residence purchases on most programs. Investment properties typically need 2-6 months of mortgage payments in the bank.

Question 26

What is a rate lock and when should I use one?

Accepted Answer

A rate lock freezes your rate for 30-60 days while your loan processes. Lock when rates drop or if you're closing soon.

Question 27

Can I refinance my Calexico home?

Accepted Answer

Yes. Cash-out, rate-and-term, and streamline refinances all work here. You'll need equity and qualifying income just like a purchase loan.

Question 28

What is a cash-out refinance?

Accepted Answer

A cash-out refi replaces your current loan with a larger one and gives you the difference in cash. Lenders cap you at 70-80% LTV depending on property type.

Question 29

How does a bridge loan work?

Accepted Answer

Bridge loans let you buy a new home before selling your current one. They're short-term, carry higher rates, and require significant equity.

Question 30

What are mortgage points and should I buy them?

Accepted Answer

Points let you pay upfront to lower your rate. One point costs 1% of the loan and drops your rate about 0.25%. Buy points if you're keeping the loan 5+ years.

Question 31

Can I qualify for a mortgage with recent bankruptcy?

Accepted Answer

FHA allows purchases two years after bankruptcy discharge. Conventional loans need four years. Some portfolio lenders consider one-year-out files with strong compensating factors.

Question 32

What happens if the appraisal comes in low?

Accepted Answer

You can renegotiate the price, bring extra cash to close, or cancel the deal. Low appraisals happen more often in rural Imperial County markets.

Question 33

Do I need homeowners insurance to close?

Accepted Answer

Yes. Lenders require proof of a paid policy before funding. Shop early — Imperial County rates can be higher due to location and property age.

Question 34

What makes SRK CAPITAL different from other brokers?

Accepted Answer

We have access to 200+ wholesale lenders and shop your file across all of them. That means better rates and more approval options than single-lender banks.

Question 35

Are mortgage rates going down in 2026?

Accepted Answer

The Fed projects multiple rate cuts later this year, though not immediately. Rates vary by borrower profile and market conditions.

Calexico Mortgage FAQs — Your Questions Answered