Imperial Mortgage FAQs: Your Questions Answered by Local Experts

Imperial buyers have access to over 25 loan programs including FHA, VA, USDA, conventional, jumbo, and specialized options like DSCR and bank statement loans. Your best choice depends on your financial profile and property goals.

Most mortgage approvals take 30-45 days from application to closing. Pre-approval can happen in 1-3 days. Timeline varies based on loan type, documentation completeness, and property appraisal scheduling.

Minimum credit scores vary by loan type. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Better scores unlock lower rates and more options.

Yes, USDA loans are available for eligible properties in Imperial County. These loans offer zero down payment options for qualified buyers in designated rural areas. Income limits and property location requirements apply.

Most borrowers need recent pay stubs, W-2s, bank statements, tax returns, and identification. Self-employed buyers may need additional business documentation. Your loan officer will provide a complete checklist.

Yes, investment property loans are available including DSCR loans that qualify based on rental income. These require higher down payments than owner-occupied homes. We offer multiple investor loan programs.

FHA loans allow lower credit scores and down payments as low as 3.5% but require mortgage insurance. Conventional loans need higher credit but offer more flexibility and lower insurance costs for qualified buyers.

Down payments vary by loan type. VA and USDA loans offer zero down. FHA requires 3.5%, conventional loans start at 3-5%, and investment properties typically need 15-25%. Rates vary by borrower profile.

Closing costs typically range from 2-5% of the purchase price. These cover appraisal, title insurance, escrow, recording fees, and lender charges. Some costs may be negotiable with the seller.

Veterans, active military, and eligible spouses may qualify for VA loans with zero down payment and no PMI. You'll need a Certificate of Eligibility and meet service requirements determined by the VA.

Bank statement loans use bank deposits instead of tax returns for income verification. These work well for self-employed buyers whose tax returns show lower income due to business deductions.

Yes, several programs don't require tax returns including bank statement loans, asset depletion loans, and DSCR loans for investors. These alternative documentation loans serve self-employed and business owner borrowers.

DSCR loans qualify investment properties based on rental income rather than personal income. The property must generate sufficient rent to cover the mortgage payment. No employment verification required.

Local market conditions influence appraisals, loan amounts, and approval timelines. Imperial County offers diverse property types requiring different financing approaches. Your loan officer understands local market dynamics.

Private Mortgage Insurance protects lenders when you put less than 20% down on conventional loans. Avoid PMI by making larger down payments, using VA loans, or choosing lender-paid options with adjusted rates.

Yes, adding a co-borrower combines incomes and can increase your buying power. Both parties become equally responsible for the loan. Co-borrowers must meet credit and income requirements.

ARMs offer lower initial rates that adjust after a fixed period. They benefit buyers planning to sell or refinance within a few years. Consider your long-term plans before choosing an ARM.

Interest-only loans let you pay just interest for a set period, lowering initial payments. Principal payments begin later, increasing monthly costs. These suit buyers expecting income growth or short-term ownership.

Jumbo loans exceed conforming loan limits set by federal agencies. They finance higher-priced properties with stricter credit and reserve requirements. Rates vary by borrower profile and market conditions.

Yes, foreign national loans and ITIN loans serve non-citizens. Requirements include larger down payments, U.S. credit history or alternatives, and proof of income. Multiple programs exist for international buyers.

Pre-qualification estimates affordability based on stated information. Pre-approval involves documentation review, credit checks, and conditional loan commitment. Pre-approval strengthens your offer significantly.

DTI compares monthly debts to gross income. Most loans require DTI under 43-50%. Lower ratios improve approval odds and rates. Pay down debts or increase income to improve your DTI.

Yes, self-employed buyers have multiple options including traditional loans with tax returns or alternative programs like bank statement and P&L loans. Documentation requirements vary by program.

Points are upfront fees that reduce your interest rate. One point equals 1% of the loan amount. Buying points makes sense if you plan to keep the loan long enough to recoup costs.

Waiting periods vary by loan type and bankruptcy chapter. FHA loans may be available 1-2 years after discharge with re-established credit. Conventional loans typically require 2-4 years.

Bridge loans provide short-term financing between property purchases. They help when buying before selling your current home. These temporary loans have higher rates but solve timing challenges.

Yes, refinancing options include rate-and-term refinances to lower payments and cash-out refinances to access equity. Timing depends on market rates, your equity position, and financial goals.

Asset depletion loans calculate income by dividing investment assets by loan term. They work for borrowers with substantial savings or investments but limited income documentation. Retirees often use these.

Earnest money deposits, typically 1-3% of purchase price, show commitment to sellers. These funds apply toward your down payment at closing. Deposits are held in escrow for protection.

A licensed appraiser inspects the property and compares it to recent sales. The appraisal protects lenders by confirming property value. Low appraisals may require renegotiation or larger down payments.

Yes, construction loans finance building or major renovations. These loans release funds in stages as work progresses. Many convert to permanent mortgages after construction completes.

Home Equity Lines of Credit let you borrow against home equity as needed. You pay interest only on amounts used. HELOCs offer flexible access to funds for improvements or other expenses.

Fifteen-year loans have higher payments but lower total interest and faster equity building. Thirty-year loans offer lower payments and more monthly flexibility. Consider your budget and financial goals.

Homeowners insurance is required by all lenders. Flood insurance may be needed in designated zones. Additional coverage options include earthquake and umbrella policies based on your risk tolerance.

Yes, rate locks protect you from increases during loan processing. Lock periods typically range from 30-60 days. Timing your lock strategically can secure favorable rates. Rates vary by borrower profile.