Westmorland Mortgage FAQs: Your Questions Answered by Local Experts

Most conventional loans require a 620 minimum credit score, while FHA loans accept scores as low as 580 with 3.5% down. VA and USDA loans typically require 600 or higher for best results.

Down payment requirements vary by loan type. Conventional loans can require as little as 3%, FHA loans need 3.5%, while VA and USDA loans offer 0% down options for eligible buyers.

FHA loans are popular for first-time buyers due to lower credit requirements and 3.5% down payments. USDA loans also work well in Westmorland since the area qualifies for rural development programs.

Most mortgage applications move from pre-approval to closing in 30-45 days. The timeline depends on your documentation readiness, appraisal scheduling, and loan complexity.

Yes, self-employed borrowers have multiple options including Bank Statement Loans, 1099 Loans, and Profit & Loss Statement Loans. These programs use alternative income documentation instead of traditional W-2s.

Typical documents include two years of tax returns, recent pay stubs, bank statements, photo ID, and employment verification. Self-employed buyers may need additional business documentation.

Rates vary by borrower profile and market conditions. Your credit score, down payment, loan type, and property location all influence your specific rate. Contact us for personalized rate information.

Closing costs typically range from 2-5% of the purchase price. These include appraisal fees, title insurance, escrow fees, and lender charges. Exact amounts depend on your loan type and purchase price.

Yes, we offer several investor loan options including DSCR Loans, Portfolio ARMs, and conventional investment property loans. DSCR loans qualify based on rental income rather than personal income.

FHA loans require lower credit scores and smaller down payments but include mortgage insurance for the loan life. Conventional loans offer more flexibility and allow mortgage insurance removal at 20% equity.

You need PMI on conventional loans with less than 20% down. FHA loans require mortgage insurance regardless of down payment. VA loans have a funding fee but no monthly mortgage insurance.

DSCR loans qualify rental property investors based on property cash flow rather than personal income. They work well for buyers with multiple properties or complex tax returns.

Yes, ITIN Loans allow borrowers without Social Security numbers to qualify for mortgages. These programs consider work history, bill payment records, and down payment instead of traditional credit.

Yes, eligible veterans and service members can use VA loans in Westmorland. These loans offer 0% down, no mortgage insurance, and competitive rates throughout Imperial County.

ARMs start with lower fixed rates for 3-10 years, then adjust periodically. They work well if you plan to sell or refinance before the adjustment period begins.

Yes, Foreign National Loans allow non-U.S. citizens to purchase California property. These programs typically require larger down payments and use international income documentation.

Bank Statement Loans qualify borrowers using 12-24 months of personal or business bank deposits. They help self-employed buyers who show significant business deductions on tax returns.

Licensed appraisers evaluate your property value using recent comparable sales. The appraisal typically occurs 1-2 weeks after your offer acceptance and ensures the home value supports your loan amount.

Bridge Loans provide short-term financing when you need to buy a new home before selling your current property. They typically last 6-12 months with higher rates than traditional mortgages.

You cannot add closing costs to your loan amount, but sellers can provide credits toward your costs. Some loan programs allow higher interest rates in exchange for lender credits.

Pre-qualification is an informal estimate based on stated information. Pre-approval involves document verification and credit checks, giving you a reliable financing commitment for home shopping.

Yes, Westmorland qualifies for USDA rural development loans. These offer 0% down financing for eligible buyers meeting income limits, making homeownership more accessible in Imperial County.

Most lenders prefer total monthly debts below 43-50% of gross income. Some programs allow higher ratios with strong credit or larger down payments. Each loan type has specific guidelines.

Yes, waiting periods vary by loan type. FHA allows purchases 2-3 years after bankruptcy, while conventional loans typically require 4 years. Each situation gets individual review.

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 the cost.

Interest-Only Loans allow payments covering just interest for a set period, typically 5-10 years. Monthly payments are lower initially but increase when principal payments begin.

Asset Depletion Loans qualify borrowers using investment accounts and assets rather than employment income. The lender calculates monthly income by dividing total assets by the loan term.

Most conventional loans are not assumable. VA and FHA loans may be assumable if you meet lender qualifications and the loan terms benefit you compared to current market rates.

These loans use CPA-prepared or self-prepared P&L statements to verify self-employed income. They offer faster qualification than traditional loans requiring full tax returns.

California uses escrow companies rather than attorneys for most residential closings. The escrow officer handles document preparation, fund disbursement, and recording.

You can negotiate with the seller for a price reduction, increase your down payment to cover the gap, or request a reconsideration of value with additional comparable sales.

Most lenders require 6-12 months of payment history before refinancing. Cash-out refinances typically need more seasoning than rate-and-term refinances without additional cash.

HELOCs provide revolving credit lines secured by your home equity. You draw funds as needed during the draw period, paying interest only on the amount used.

Yes, Construction Loans provide funds in draws as building progresses. These convert to permanent mortgages once construction completes, simplifying the financing process.

Jumbo loans exceed conforming limits set by Fannie Mae and Freddie Mac. In Imperial County, loans above $806,500 are considered jumbo and typically require larger down payments and reserves.

Reverse Mortgages allow homeowners 62+ to convert home equity into cash without monthly payments. The loan is repaid when you sell, move, or pass away.

PMI protects lenders on conventional loans with less than 20% down. You can request removal once you reach 20% equity through payments or appreciation, or it automatically ends at 22% equity.

Yes, lenders require proof of homeowners insurance before funding your loan. The policy must cover the full replacement value and list the lender as mortgagee.

A rate lock guarantees your interest rate for 30-60 days during loan processing. Lock when you find favorable terms and have a definite closing date to avoid rate increases.

Yes, if the mobile home is permanently affixed to land you own. FHA and conventional loans may apply, though requirements differ from standard single-family home purchases.