Question 1

How much do I need for a down payment in Bell Gardens?

Accepted Answer

FHA loans require 3.5% down, conventional loans 3-5% for primary homes. Investment properties typically need 15-25% depending on the loan program and your credit profile.

Question 2

What credit score do I need to buy a home here?

Accepted Answer

Most lenders want 620 minimum for conventional loans, 580 for FHA. We have portfolio lenders who approve borrowers at 550 for specific programs with larger down payments.

Question 3

How long does it take to close on a Bell Gardens property?

Accepted Answer

Conventional and FHA loans typically close in 21-30 days with complete documents. Cash-out refinances and non-QM loans can take 30-45 days depending on complexity.

Question 4

Can I buy a home if I'm self-employed?

Accepted Answer

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

Question 5

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 borrowers need two years of tax returns, 30 days of pay stubs, and 60 days of bank statements. Self-employed borrowers need 12-24 months of business bank statements for alternative programs.

Question 6

Should I choose FHA or conventional in Bell Gardens?

Accepted Answer

FHA makes sense below 10% down or with credit under 680. Conventional costs less monthly with 10%+ down and eliminates PMI at 20% equity.

Question 7

What are closing costs on a Bell Gardens home?

Accepted Answer

Expect 2-5% of the purchase price for lender fees, title, escrow, and prepaid taxes. On a $500k purchase, that's $10k-$25k depending on your loan type and down payment.

Question 8

Can I use a gift for my down payment?

Accepted Answer

Yes, most programs allow gifts from family members with a signed letter. FHA requires you to contribute at least 3.5% yourself unless the gift covers everything.

Question 9

Do I need mortgage insurance in Bell Gardens?

Accepted Answer

FHA requires mortgage insurance for the loan life. Conventional loans drop PMI when you hit 20% equity through payments or appreciation.

Question 10

What's the difference between pre-qualified and pre-approved?

Accepted Answer

Pre-qualified is an estimate based on what you tell us. Pre-approved means we verified your income, assets, and credit through documentation.

Question 11

Can I buy an investment property in Bell Gardens with 15% down?

Accepted Answer

Yes, through specific portfolio lenders in our network. Most conventional investment loans require 20-25%, but we have programs that go lower for strong borrowers.

Question 12

What's a DSCR loan and who needs it?

Accepted Answer

DSCR loans qualify you based on the rental income the property generates, not your personal income. Investors with multiple properties use these to avoid income verification.

Question 13

How does an adjustable rate mortgage work?

Accepted Answer

ARMs offer lower initial rates for 5, 7, or 10 years, then adjust annually based on market indexes. They work well if you plan to sell or refinance before adjustment.

Question 14

Can I get a mortgage with an ITIN instead of a Social Security number?

Accepted Answer

Yes, ITIN loans are available through specialized lenders. You'll need 15-20% down, 12 months of bank statements, and proof of two years living in the US.

Question 15

What's the benefit of a bank statement loan?

Accepted Answer

These loans use deposits instead of tax returns to calculate income. Self-employed borrowers who write off expenses show higher income this way.

Question 16

Should I buy discount points on my Bell Gardens mortgage?

Accepted Answer

Points make sense if you're keeping the loan 5+ years and the rate reduction covers the upfront cost. Most borrowers refinance before breaking even.

Question 17

Can I refinance with less than 20% equity?

Accepted Answer

Yes, but you'll pay PMI on conventional loans or MIP on FHA. Some portfolio lenders refinance at 15% equity for borrowers with strong credit.

Question 18

What's a jumbo loan and when do I need one?

Accepted Answer

Jumbo loans exceed conforming limits, which is $766,550 in LA County for 2024. Rates vary by borrower profile and market conditions.

Question 19

How do lenders calculate my debt-to-income ratio?

Accepted Answer

We divide your total monthly debt payments by gross monthly income. Most programs want 43-50% DTI, though some portfolio loans go to 55% with strong credit.

Question 20

Can I buy a second home with a low down payment?

Accepted Answer

Second homes require 10% down minimum for conventional loans. Lenders verify you don't plan to rent it out through occupancy documentation.

Question 21

What's an asset depletion loan?

Accepted Answer

These loans qualify you based on liquid assets like stocks and retirement accounts divided by 360 months. Retirees with investment income use these programs.

Question 22

Do I qualify for a VA loan in Bell Gardens?

Accepted Answer

Veterans and active military qualify for 0% down VA loans with no mortgage insurance. You'll pay a funding fee unless you're disabled.

Question 23

How long does it take to get pre-approved?

Accepted Answer

With complete documents, we can pre-approve you in 24-48 hours. Missing paperwork extends the timeline significantly.

Question 24

Can I roll closing costs into my mortgage?

Accepted Answer

Not on purchases, but you can ask sellers to cover costs through concessions. Refinances let you roll costs in if you have enough equity.

Question 25

What happens if my appraisal comes in low?

Accepted Answer

You can renegotiate the price, bring extra cash to close, or walk away if you have an appraisal contingency. Some buyers do a combination.

Question 26

Should I lock my rate or float?

Accepted Answer

Lock when you're satisfied with the rate and within 45 days of closing. Floating is gambling that rates drop before your lock period.

Question 27

What's the difference between interest rate and APR?

Accepted Answer

Interest rate is your monthly payment rate. APR includes lender fees spread over the loan life and shows true borrowing cost.

Question 28

Can I get a mortgage with a recent bankruptcy?

Accepted Answer

FHA allows purchases two years after Chapter 7 discharge with rebuilt credit. Conventional loans typically require four years post-bankruptcy.

Question 29

What's a bridge loan and when would I use one?

Accepted Answer

Bridge loans let you buy before selling your current home. They're expensive short-term financing for buyers in competitive timing situations.

Question 30

How does a HELOC differ from a home equity loan?

Accepted Answer

HELOCs are revolving credit lines you draw from as needed with variable rates. Home equity loans give you a lump sum with fixed rates.

Question 31

Can I buy a fixer-upper with a regular mortgage?

Accepted Answer

FHA 203k and conventional renovation loans let you finance purchase price plus repairs in one loan. Hard money works for serious rehabs investors plan to flip.

Question 32

What credit issues disqualify me from getting approved?

Accepted Answer

Recent foreclosures, active collections over $2k, and undisclosed debts cause denials. Tax liens must be paid or in payment plans for most programs.

Question 33

Do I need reserves to buy in Bell Gardens?

Accepted Answer

Investment properties require 2-6 months of reserves depending on properties owned. Primary homes need reserves only for high DTI or certain loan programs.

Question 34

How soon after closing can I refinance?

Accepted Answer

You can refinance immediately, but most lenders want six months of payment history. Cash-out refinances typically require 6-12 months of ownership.

Question 35

What's a portfolio ARM and who should consider it?

Accepted Answer

Portfolio ARMs come from individual lenders, not sold to Fannie or Freddie. They offer flexible underwriting for borrowers who don't fit standard loan boxes.

Bell Gardens Mortgage FAQs: Your Local Home Loan Questions Answered