Alhambra Mortgage FAQs: Your Questions Answered by Local Brokers

Conventional loans require 5-20% down depending on loan amount. FHA allows 3.5% down, but most Alhambra homes exceed FHA limits—you'll need 10-15% for properties above $650,000.

620 minimum for Conventional. FHA accepts 580, but rates improve dramatically at 640+—we recommend waiting if you're below that threshold.

Yes. ITIN loans let you qualify with an Individual Taxpayer Identification Number. Expect 15-20% down and slightly higher rates than SSN-based loans.

21-30 days for most loans. Bank Statement and DSCR loans add 5-7 days for underwriting—sellers here expect quick closings, so get preapproved before touring homes.

W-2 earners need two years tax returns, 60 days paystubs, two months bank statements. Self-employed? Add business tax returns and a P&L if you're a 1099 contractor.

Rates vary by borrower profile and market conditions. Contact us for current Alhambra market trends and pre-qualification based on today's pricing.

FHA makes sense if you have under 10% down and 640+ credit. Above that, Conventional typically costs less monthly due to lower mortgage insurance.

$644,000 for single-family homes in Los Angeles County. Anything above that requires Conventional or Jumbo financing—most Alhambra houses push that limit.

Yes, if you live in one unit. FHA allows up to four units with 3.5% down—common for duplex purchases near Main Street or Garfield Avenue.

Self-employed borrowers who can't show W-2 income qualify using 12-24 months of business bank deposits. Expect 10-20% down and rates 0.5-1% higher than Conventional.

Veterans and active military qualify with 0% down and no mortgage insurance. Appraisals are stricter—older Alhambra homes sometimes need repairs before VA approval.

2-5% of purchase price. Includes lender fees, title insurance, escrow, and LA County transfer taxes—budget $15,000-$25,000 on a $600,000 home.

Yes, up to 3-6% depending on loan type. In Alhambra's market, sellers rarely agree unless your offer is strong—multiple bids mean limited concessions.

Private mortgage insurance costs 0.3-1.5% annually when you put down under 20%. Avoid it by hitting 20% down or using a piggyback second mortgage structure.

Only if you're keeping the loan 5+ years. Each point costs 1% of the loan amount and drops your rate 0.25%—run the break-even math before deciding.

Investor loans based on rental income, not your W-2. Perfect for buying Alhambra rental properties when you're self-employed or already own multiple homes.

Yes. Family members can gift funds for FHA, Conventional, and VA loans—you'll need a gift letter stating the money doesn't require repayment.

Prequalified is an estimate. Preapproved means underwriting reviewed your documents and conditionally committed to lend—Alhambra sellers only take preapproved buyers seriously.

Lenders want your total monthly debts under 43-50% of gross income. A $600,000 home typically requires $9,000-$11,000 monthly income depending on debts and down payment.

FHA 203(k) loans cover purchase plus repairs in one mortgage. Useful for older Alhambra homes that need foundation work, electrical upgrades, or kitchen remodels before move-in.

Adjustable Rate Mortgages start with lower rates that adjust after 5, 7, or 10 years. Makes sense if you're selling within the fixed period—risky if you're staying long-term.

Not required but strongly recommended. Lenders mandate fire and hazard coverage—earthquake is optional but smart given Southern California's seismic risk.

Yes, but expect higher rates than primary residence loans. DSCR loans allow 15-20% down for Alhambra rentals if the property generates sufficient rental income.

Loans above $644,000 in Los Angeles County. Require 10-20% down, 680+ credit, and lower debt ratios—most Alhambra single-family homes hit this threshold.

Lenders average two years of tax returns to calculate income. If your income dropped recently or you write off heavy expenses, Bank Statement loans use deposits instead of tax returns.

Yes. Multiple borrowers can combine income and credit—common in Alhambra for multi-generational purchases. All parties must be on title and the loan.

Short-term financing to buy before selling your current home. Rates are high—only use if you're certain your existing home will sell within 6-12 months.

Most loans require 2-6 months of mortgage payments in savings post-close. Jumbo loans often want 12+ months—lenders check this at underwriting and before funding.

Yes. Foreign National loans allow non-US citizens to purchase with 30-40% down. We see this frequently in Alhambra—bring passport, visa, and proof of foreign income.

Lenders prefer single-family homes in the hills near Alhambra High School. Condos near Valley Boulevard or older multi-units sometimes face stricter approval requirements.

Chapter 7: two years for FHA, four for Conventional. Chapter 13: one year of payments for FHA—timing depends on discharge date and credit rebuilding efforts.

Interest rate is what you pay on the principal. APR includes fees and closing costs—compare APRs across lenders to see true cost of borrowing.

Some lenders offer float-down locks if rates drop. Most locks require a signed purchase contract—we recommend locking once you're in escrow, not during house hunting.

You'll need to cover the gap with extra cash, renegotiate price, or cancel. Alhambra sellers rarely drop prices in competitive markets—plan for appraisal risk upfront.

Focus on APR, monthly payment, and closing costs. Ignore vague fees—compare apples to apples by asking each lender for identical lock periods and loan structures.

Bank Statement loans work if you deposit that cash regularly. Lenders average 12-24 months of deposits—inconsistent deposit patterns make approval harder.

Home Equity Line of Credit lets you borrow against existing equity. Useful for renovations or down payments on investment properties—requires 15-20% remaining equity.

Yes, if it improves your debt-to-income ratio. Pay off high-balance credit cards and car loans first—student loans have less impact due to lower monthly payments.

Conventional and FHA allow refinancing after six months. Cash-out refinances typically require 12 months of ownership—rates vary by borrower profile and market conditions.

FHA if you have under 10% down. Conventional if you can hit 10-15% and have 680+ credit—run both scenarios to see which costs less monthly.