Hanford Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans require 580 minimum, but most conventional loans want 620 or higher. Rates vary by borrower profile and market conditions.

FHA accepts 3.5% down, conventional allows 3-5%, and VA/USDA offer zero-down options. Your loan type determines the minimum.

Yes, through bank statement loans or 1099 loans that use deposits instead of tax returns. We structure these deals regularly for agricultural workers.

Bring two years of tax returns, 60 days of bank statements, recent pay stubs, and photo ID. Self-employed borrowers need business documentation.

Standard purchase loans close in 30-45 days. Cash-out refinances take longer due to appraisal requirements and underwriting reviews.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life. Conventional drops PMI at 20% equity.

Most areas outside Hanford city limits qualify for USDA zero-down financing. Income limits apply based on household size.

No, VA loans require owner occupancy. For rentals, use conventional investor loans or DSCR loans based on rental income.

Expect 2-5% of the purchase price for lender fees, title, escrow, and prepaid items. Costs vary by loan type and property location.

FHA 203k loans and conventional renovation loans fund purchase plus repairs in one mortgage. Properties must meet minimum safety standards.

Traditional loans average two years of tax returns and reduce income by write-offs. Bank statement loans use gross deposits instead.

Debt Service Coverage Ratio loans qualify based on rental income, not personal finances. Hanford investors use these for non-owner occupied properties.

Yes, ITIN loans accept Individual Taxpayer Identification Numbers instead of SSNs. Down payments typically start at 15-20%.

Bridge loans let you buy before selling your current home. They work best when Hanford inventory moves fast and you can't wait.

Most programs go up to $3 million using 12-24 months of business or personal bank statements. Rates vary by borrower profile and market conditions.

Most jumbo lenders want 700+ credit and 20% down minimum. Larger loans require stronger credit profiles and lower debt ratios.

Private Mortgage Insurance protects lenders when you put down less than 20%. Avoid it with 20% down or piggyback second mortgages.

Most loan programs accept gifts from family members with proper documentation. Donors must provide a signed gift letter confirming no repayment required.

ARMs offer lower initial rates that adjust after a fixed period. They make sense if you'll sell or refinance within 5-7 years.

Most conventional loans cap DTI at 45-50%, including your new mortgage payment. FHA stretches to 55% with compensating factors.

No, investment properties require 15-25% down depending on loan type. Owner-occupied purchases offer low or zero-down options through FHA or VA.

Pre-qualification estimates borrowing power without verification. Pre-approval reviews actual documents and carries weight with Hanford sellers.

You pay only interest for a set period, then principal kicks in. These work for buyers expecting income increases or short ownership timelines.

Yes, through a rate-and-term refinance if you qualify alone based on income and credit. Expect a new appraisal and standard closing costs.

Asset depletion calculates income from investments or savings accounts for retirees. Lenders divide assets by 360 months to determine qualifying income.

Only if your property sits in a FEMA flood zone and you carry a mortgage. Lenders require coverage before closing.

Yes, foreign national loans don't require US credit or residency. Expect 20-30% down and higher rates than conventional products.

You can renegotiate the price, bring extra cash to closing, or walk away if you have an appraisal contingency. Most contracts include this protection.

Construction-to-permanent loans fund the build and convert to a standard mortgage at completion. You need construction plans, builder contracts, and 20% down.

Yes, with 10-20% down depending on credit and reserves. Lenders require proof your income supports both mortgages simultaneously.

Active bankruptcies, foreclosures under three years old, and large unpaid collections usually cause denials. Disputes on credit reports delay closing.

HELOCs work like credit cards with variable rates and a draw period. Home equity loans provide lump sums with fixed rates and payments.

Yes, you can withdraw from 401k or IRA for home purchases. Expect penalties and taxes unless using first-time buyer exemptions.

Rate locks guarantee your interest rate for 30-60 days during processing. Lock when rates feel favorable or when you're close to closing.

No, California uses escrow officers instead of attorneys for real estate transactions. Your title company handles document preparation and recording.

Conventional loans let you request PMI removal at 20% equity with a new appraisal. FHA mortgages originated after 2013 require refinancing to drop it.

Portfolio ARMs come from lenders holding loans in-house rather than selling them. They offer flexibility for complex income situations or unique properties.

We evaluate your income structure, down payment, credit profile, and property type across 200+ lenders. Most buyers benefit from comparing 3-4 options.

Sometimes, if liens are subordinated behind the new mortgage or paid at closing. IRS payment plans require documentation and approval from underwriting.

Brokers shop multiple lenders while banks only offer their own products. We access wholesale pricing and programs unavailable directly to consumers.