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Avenal Mortgage FAQ
We've financed hundreds of properties in Kings County and know what Avenal buyers face. Most questions we get involve credit requirements, down payments, and choosing between conventional and FHA loans.
This guide answers the mortgage questions we hear daily from Avenal homebuyers. We cover everything from closing costs to self-employed qualifications to choosing the right loan for your situation.
FHA loans accept 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though better rates start at 680.
FHA loans require 3.5% down, conventional loans allow 3% for first-time buyers. Investment properties need 15-25% depending on loan type.
Bring two years of tax returns, 30 days of pay stubs, two months of bank statements, and photo ID. Self-employed borrowers may use bank statements instead of tax returns.
Standard purchases close in 30-45 days. Cash-out refinances take 30 days minimum due to federal waiting periods.
FHA works better with credit under 680 or minimal down payment. Conventional wins with 5%+ down and 720+ credit because PMI drops off at 78% LTV.
Yes, bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and profit-loss statement programs.
Expect 2-5% of purchase price for closing costs. This includes lender fees, title insurance, escrow, and prepaid property taxes.
Conventional loans require PMI with under 20% down until you reach 78% LTV. FHA charges mortgage insurance for the loan's life with under 10% down.
Veterans can buy with zero down and no PMI using VA loans. You'll still pay a funding fee unless exempt due to disability rating.
Avenal doesn't qualify for USDA rural housing loans. Consider FHA or conventional loans with low down payment options instead.
Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit through documentation.
Rates don't vary by city—they're based on your credit score, loan type, and down payment. Market conditions shift rates daily for all borrowers.
Yes, conventional loans allow 15% down on single-unit investment properties. DSCR loans also work with 20-25% down and no income verification.
DSCR loans qualify based on rental income, not your personal income. Ideal for investors with multiple properties or complex tax returns.
Most programs cap DTI at 43-50% including your new mortgage payment. FHA stretches to 56.9% with strong credit and cash reserves.
Yes, ITIN loans don't require Social Security numbers or US citizenship. You'll need 15-20% down and proof of income through tax returns or bank statements.
Points make sense if you're keeping the loan 5+ years. Each point costs 1% of loan amount and typically drops your rate 0.25%.
ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They work well if you plan to sell or refinance before adjustment.
Yes, family members can gift down payment funds on primary residences. You'll need a gift letter stating no repayment is expected.
Recent bankruptcies, foreclosures, or unpaid tax liens block most approvals. Bankruptcy needs 2-4 years seasoning depending on loan type.
W-2 employees provide pay stubs and tax returns. Self-employed borrowers can use bank statements, 1099 forms, or profit-loss statements depending on program.
FHA 203k loans finance purchase plus repairs in one mortgage. Conventional renovation loans also exist but require 5% down minimum.
Bridge loans let you buy before selling your current home. They're short-term financing with higher rates, typically 6-12 months.
Lenders qualify you at 43-50% DTI, but aim for 28-35% for comfort. Use 3x your annual income as a rough starting point.
MI protects lenders when you put down under 20%. Avoid it with 20%+ down, piggyback loans, or lender-paid MI with higher rates.
Cash-out refinances let you access equity up to 80% LTV on primary homes. Investment properties cap at 75% LTV with most lenders.
HELOCs are revolving credit lines secured by your home equity. They work well for ongoing projects but have variable rates.
Yes, lenders require proof of insurance before funding. Your policy must cover at least the loan amount and start on closing day.
You can pay the difference in cash, renegotiate price, or walk away if you have an appraisal contingency. Sellers often split the difference.
No, you need a property address and purchase contract to lock rates. Locks typically last 30-60 days from execution.
Interest rate is your cost to borrow. APR includes rate plus fees spread over loan life, giving true cost comparison.
Expect roughly 1% of purchase price annually in California. Kings County may add local assessments that vary by area and services.
Most conventional loans aren't assumable. FHA and VA loans allow assumptions if you qualify, potentially saving on today's higher rates.
FHA wins with under 5% down and credit below 680. Conventional beats FHA with 5%+ down and 720+ credit due to cheaper insurance.
We shop your scenario across 200+ wholesale lenders daily. Banks show you one rate sheet; we compare hundreds to find your best fit.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.