Bell, CA Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans start at 580 credit, but most competitive rates require 620 or higher. We have portfolio lenders who approve 550-580 scores with larger down payments.

FHA requires 3.5% down, conventional starts at 3%. Investment properties typically need 15-25% depending on the loan program.

Yes, ITIN loans let you purchase using an Individual Taxpayer Identification Number. These programs require 15-20% down and proof of income.

W-2 buyers need two years tax returns, recent pay stubs, and bank statements. Self-employed borrowers should ask about bank statement or P&L programs first.

Standard purchases close in 30-45 days. All-cash buyers converting to financing can close in 15-21 days with the right lender.

FHA allows lower credit and smaller down payments but charges lifetime mortgage insurance. Conventional drops PMI at 20% equity and offers better rates above 680 credit.

Absolutely. Bank statement loans use 12-24 months of deposits instead of tax returns. 1099 loans work well for contractors with consistent income.

Yes, bank statement programs work well for Bell's self-employed buyers. Lenders calculate income from business account deposits, typically at 50-75% of total deposits.

Expect 2-5% of purchase price for closing costs. This includes lender fees, title insurance, escrow, and prepaid property taxes.

Only if you're keeping the loan 5+ years. Most Bell buyers refinance or move within three years, making points a bad investment.

PMI is private mortgage insurance required below 20% down on conventional loans. You avoid it with 20% down, VA loans, or certain physician loan programs.

Yes, conventional investor loans accept 15% down on single-family rentals. DSCR loans focus on rental income instead of your personal income.

DSCR loans qualify you based on property rental income, not your tax returns. Perfect for investors with multiple properties or complex tax situations.

VA loans require zero down payment and no PMI for eligible veterans. Rates typically beat FHA and conventional, making them the best option when available.

Yes, Community Mortgages and specialized conventional programs offer down payment assistance. We'll check which programs fit your income and property location.

Pre-qualification is an estimate based on what you tell us. Pre-approval means underwriting reviewed your documents and committed to a loan amount.

Yes, most programs accept gifted funds from family members. The donor provides a gift letter stating the money doesn't require repayment.

Rates vary by borrower profile and market conditions. Your credit score, down payment, and loan type determine your specific rate.

30-year loans cost less monthly but more in total interest. Choose 15-year only if the higher payment leaves room for emergencies and savings.

ARMs offer lower initial rates that adjust after 5-10 years. They work well if you'll sell or refinance before the adjustment period hits.

Yes, foreign national loans let non-US citizens purchase Bell real estate. These require 20-30% down and proof of international income.

Jumbo loans exceed conforming limits, currently $806,500 in Los Angeles County. They require stronger credit and larger reserves than conventional loans.

Bridge loans let you buy before selling your current home. You pay interest-only for 6-12 months while marketing your existing property.

DTI compares monthly debt payments to gross income. Most programs max out at 43-50% DTI, though some portfolio lenders go higher.

Yes, but waiting periods apply: 2-4 years for bankruptcy, 3-7 years for foreclosure. Some portfolio lenders offer shorter timelines with strong compensating factors.

Asset depletion loans qualify you based on investment accounts, not income. Lenders divide assets by 360 months to calculate qualifying income.

Most refinances require appraisals. Some conventional streamline programs waive it if you have strong equity and payment history.

Hard money loans fund fix-and-flip projects or distressed properties that won't qualify for traditional financing. Expect higher rates and short terms of 6-24 months.

Most lenders lock rates after you're in contract. Float-down options protect you if rates drop before closing.

Denials from one bank don't affect other applications. We broker with 200+ lenders, so we'll find another program that fits your profile.

Cash income makes traditional qualifying difficult without tax returns. Bank statement programs work if you deposit consistently, or consider stated income portfolio loans.

Brokers shop multiple lenders to find your best rate and program fit. Banks only offer their own products, limiting your options.

Yes, county-specific bond programs and down payment assistance exist. Availability depends on property location and your income limits.

It depends on purchase price and existing debts. As a rough guide, your total housing payment shouldn't exceed 28-43% of gross monthly income.

Yes, FHA allows 2-4 unit purchases with 3.5% down if you live in one unit. Rental income from other units helps you qualify.

Buydowns reduce your rate for 1-3 years before adjusting to the note rate. Sellers sometimes offer them as purchase incentives.

Construction loans fund new builds in phases as work completes. They convert to permanent mortgages once the home is finished and appraised.

HELOCs are credit lines secured by home equity. You need 15-20% equity remaining after the HELOC and decent credit to qualify.

Yes, homeowners 62+ can access equity without monthly payments. The loan gets repaid when you sell or pass away.

Conventional cash-out refinances require 6-12 months of ownership. Rate-and-term refinances can happen immediately if rates drop significantly.