Azusa Mortgage FAQs: Expert Answers to Your Home Financing Questions

FHA loans start at 580, but you'll get better rates at 620+. Conventional loans typically require 620 minimum, though some lenders will go lower with compensating factors.

FHA requires 3.5% down, conventional loans allow 3-5% for primary residences. Putting down 20% eliminates PMI and strengthens your offer in competitive situations.

W-2 borrowers need two years of tax returns, two months of pay stubs, and two months of bank statements. Self-employed borrowers typically need two years of full tax returns plus YTD profit and loss.

Purchase loans typically close in 21-30 days. Refinances often take 30-45 days depending on appraisal turnaround and title work.

Azusa offers more accessible pricing than central Los Angeles County areas. The mix of single-family homes and condos gives first-timers options at different price points.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity and offer better rates for strong borrowers.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and P&L statement programs for business owners who write off income.

Expect 2-3% of the purchase price for lender fees, title, escrow, and prepaid items. On a $600K home, that's $12K-$18K, though seller credits can reduce your out-of-pocket.

No. Put down 20% on a conventional loan and you avoid PMI entirely. VA loans never require PMI regardless of down payment.

Debt Service Coverage Ratio loans qualify you based on rental income, not personal income. Investors use them to buy properties without showing W-2s or tax returns.

Absolutely. VA loans require no down payment, no PMI, and offer competitive rates. They're often the best deal for eligible service members buying in Los Angeles County.

ARMs start with lower rates than fixed mortgages, typically 0.5-1% less. They make sense if you'll sell or refinance within 5-7 years.

Lenders average your deposits over 12 or 24 months to calculate income. They typically use 50-75% of deposits depending on whether you're a sole proprietor or incorporated.

Most jumbo lenders require 700 minimum, though some will go to 680 with larger down payments. Expect stricter debt-to-income limits than conforming loans.

Yes on conventional loans, but you'll pay higher rates than primary residences. DSCR loans also allow 15-20% down and qualify on rental income alone.

Pre-qualified is an estimate based on what you tell a lender. Pre-approved means we've verified income, assets, and credit—it's what sellers want to see.

Only if you'll keep the loan long enough to recoup the upfront cost. Break-even is typically 3-5 years depending on the rate reduction.

Yes. ITIN loans require larger down payments, typically 15-20%, and may carry slightly higher rates than conventional loans.

Conventional and FHA loans allow up to 50% DTI with strong credit and reserves. Some lenders cap at 45% depending on the loan program.

Primary residence loans typically require 2 months of PITI in reserves. Investment properties often need 6-12 months depending on how many properties you own.

Lenders divide your liquid assets by 360 months to create qualifying income. Retirees with substantial savings but limited monthly income use these loans.

FHA 203(k) and conventional renovation loans let you finance purchase and repairs in one loan. Hard money works for serious rehabs where you'll refinance after construction.

Bridge loans let you buy before selling your current home. Rates run higher than permanent financing, but they solve timing problems in competitive markets.

Yes. FHA and conventional loans allow gifts from family members with a signed letter. VA loans allow gifts with no minimum borrower contribution.

15-year loans typically offer rates 0.5-0.75% lower than 30-year terms. You'll build equity faster but your monthly payment increases significantly.

Most lenders require 6-12 months of payment history before refinancing. VA loans have a 210-day waiting period for Interest Rate Reduction Refinances.

Portfolio ARMs come from lenders who hold loans instead of selling them. They offer more flexible underwriting than conforming products but typically carry higher rates.

HELOCs let you borrow against equity as needed during a draw period, typically 10 years. Rates adjust monthly and you only pay interest on what you actually use.

Home equity loans provide a lump sum with a fixed rate and payment. HELOCs work like credit cards with variable rates and flexible draws.

Yes. Foreign national loans typically require 30-40% down and accept foreign credit and income documentation. Rates run higher than standard programs.

Construction loans fund building in stages as work completes. You pay interest only during construction, then convert to permanent financing when the home is finished.

Lock when you have a ratified contract and closing date. Floating makes sense only if rates are dropping and you can handle potential increases.

You pay only interest for 5-10 years, then the loan amortizes. Monthly payments jump significantly when the interest-only period ends.

Conventional loans allow PMI removal at 20% equity through appreciation or principal paydown. You'll need a new appraisal proving the value increase.

These programs offer down payment assistance or reduced rates for qualifying borrowers. Requirements vary but often target first-time buyers or specific income levels.

Properties in FEMA flood zones require flood insurance. Most Azusa homes sit outside flood zones, but check the flood map for your specific property.

Locks guarantee your rate for 30-60 days while you close. Extensions cost money, so choose a lock period that matches your closing timeline.

You can renegotiate the price, increase your down payment to cover the gap, or walk away if you have an appraisal contingency. Rates vary by borrower profile and market conditions.

Yes. You can withdraw from IRAs or 401(k)s, though you'll owe taxes and potentially penalties. Some plans allow loans against your balance without tax consequences.

Borrowers 62+ can convert home equity into cash without monthly payments. The loan balance grows over time and gets repaid when you sell or pass away.