Mortgage FAQs for Corcoran, CA Homebuyers

FHA loans start at 580 credit score with 3.5% down. Conventional loans typically need 620 minimum, though some portfolio lenders go lower for strong income.

FHA requires 3.5% down, conventional loans allow 3-5%, and USDA loans offer zero down for eligible rural properties. Investment properties need 15-25% depending on loan type.

Purchase loans close in 21-30 days with standard documentation. Bank statement and asset depletion loans add 5-10 days for underwriting review.

W-2 earners need two years tax returns, recent pay stubs, and bank statements. Self-employed borrowers provide business tax returns or 12-24 months of bank statements depending on loan type.

Yes. Bank statement loans use 12-24 months of deposits to calculate income, no tax returns needed. We also have 1099 loans and profit-loss statement programs for business owners.

FHA allows lower credit scores and 3.5% down but requires mortgage insurance for life on minimal down payments. Conventional loans drop PMI at 20% equity and offer better rates above 680 credit.

Some areas around Corcoran may qualify for USDA rural housing loans with zero down payment. We verify eligibility by property address since boundaries shift.

Plan for 2-3% of purchase price including lender fees, title insurance, escrow, and county recording. Sellers sometimes cover costs in buyer's markets.

Yes. We use Schedule F from tax returns for traditional approval, or bank statement loans for farmers who write off most income. Both work with the right lender.

DSCR loans approve based on rental income, not personal income. Investors buying Corcoran rental properties use these when they don't want to show tax returns or W-2s.

Conventional loans offer the lowest rates with strong credit. Bank statement and DSCR loans run 0.5-2% higher due to flexible underwriting. Rates vary by borrower profile and market conditions.

Investment properties require 15% down minimum for conventional loans. DSCR loans typically need 20-25% down depending on credit score and property cash flow.

Asset depletion loans divide your bank and investment accounts by 360 months to create qualifying income. Retirees and high-net-worth buyers with low reported income use these.

Yes, if you put down less than 20%. PMI costs 0.3-1.5% annually but drops automatically at 78% loan-to-value or by request at 80%.

Yes. ITIN loans work for foreign nationals and non-citizens buying in Corcoran. These require 15-25% down and prove income through bank statements or employment letters.

Bridge loans provide short-term financing when you're buying before selling your current home. We use these when timing doesn't align for simultaneous closings.

ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years based on market indexes. These make sense if you plan to sell or refinance before the first adjustment.

We pull credit, review income docs, and issue a pre-approval letter in 24-48 hours. That letter shows sellers you're serious and can close on your offer.

Not on purchase loans. You can ask sellers to cover costs, or choose a higher rate in exchange for lender credits that offset fees.

Portfolio ARMs are held by individual lenders rather than sold to Fannie Mae. These offer flexible underwriting for unique income situations with adjustable rates.

Most lenders cap total debt at 43-50% of gross monthly income. That includes your new mortgage, property taxes, insurance, and existing debts like car loans.

Not required, but smart. Inspections cost $300-500 and reveal issues that help you negotiate repairs or walk away before you're committed.

Yes. VA loans require zero down payment and no mortgage insurance for eligible veterans and service members. These offer the best terms if you qualify.

Hard money provides fast financing for fix-and-flip investors or borrowers who can't qualify traditionally. Rates run 8-12% with terms under two years.

HELOCs let you borrow against home equity as needed, like a credit card. You pay interest only on what you use during the 10-year draw period.

Home equity loans give you a lump sum with fixed payments. HELOCs provide a credit line you draw from as needed with variable rates.

Yes. Construction loans fund both purchase and renovation costs, converting to permanent financing after work completes. These require detailed contractor bids and timelines.

Interest-only loans let you pay just interest for 5-10 years before principal payments start. Investors use these to maximize cash flow on rental properties.

Lenders deposit all deposits over 12 or 24 months, subtract business expenses using industry percentages, then divide by months. No tax returns required.

Yes, if you qualify for the mortgage solo and have equity or can complete a streamlined refinance. You'll need a quit claim deed transferring ownership.

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

Yes. Foreign national loans require 20-30% down and proof of international income. These work for non-US citizens buying investment or vacation properties.

We review the denial reason and find alternative loan programs. Often a bank statement or asset depletion loan works when conventional financing doesn't.

Most lenders require a signed purchase contract before locking rates. Locks typically last 30-60 days, matching your expected closing timeline.

We shop 200+ lenders to find better rates and loan programs than any single bank offers. That saves you money and gets deals approved that banks decline.