Calabasas Mortgage FAQs – Expert Answers from Local Brokers

Conventional loans require 620 minimum, but most Calabasas purchases need 680+ to compete. Jumbo loans typically want 700 or higher for the best rates.

Conventional loans allow 3-5% down, but jumbo loans — common here — typically require 10-20%. Larger down payments improve rates and waive PMI on conforming amounts.

FHA allows 580 credit and 3.5% down but charges mortgage insurance for life. Conventional requires higher credit but drops PMI once you hit 20% equity.

You'll need 700+ credit, significant reserves (6-12 months), and debt-to-income under 43%. Lenders scrutinize income stability harder than on conforming loans.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. Profit & loss loans work too if your CPA provides documentation.

W-2 buyers need two years tax returns, recent paystubs, and bank statements. Self-employed borrowers add business returns and possibly bank statements or 1099s.

Pre-approval takes 1-3 days. Full underwriting runs 3-4 weeks if docs are clean, longer if you're self-employed or the property needs appraisal reviews.

Expect 2-5% of purchase price. This includes lender fees, title insurance, escrow, and county transfer taxes — higher on jumbo loans.

Only if you're keeping the loan 5+ years. One point costs 1% upfront and typically drops your rate 0.25%. Do the breakeven math first.

Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. You avoid it with 20% down or piggyback second mortgages.

Yes. These loans use 12-24 months of business or personal bank deposits to calculate income. Perfect for business owners who write off heavy expenses.

Debt service coverage ratio loans approve based on rental income, not personal income. Investors use these to avoid W-2 or tax return requirements entirely.

They work up to the VA conforming limit, but most Calabasas homes exceed that threshold. You'd need a VA jumbo or combination financing above the cap.

Not always. Rates vary by borrower profile and market conditions, but strong credit often gets jumbo rates matching or beating conforming loan pricing.

ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They make sense if you'll sell or refinance before adjustment, common with Calabasas buyers.

Yes. ITIN loans require larger down payments (15-25%) and have higher rates, but they don't require citizenship or permanent residency.

These are adjustable rate mortgages held by individual lenders instead of sold to Fannie or Freddie. They allow more flexible underwriting for unique borrowers.

Lenders want housing costs under 28% of gross income and total debt under 43%. On a $2 million purchase, expect to show $25,000+ monthly income minimum.

Reserves are liquid assets after closing — savings, stocks, retirement accounts. Jumbo loans want 6-12 months of mortgage payments in reserves minimum.

Yes. Expect 15-25% down and higher rates than primary residence loans. DSCR loans let you qualify on rental income alone without personal income verification.

Bridge loans fund your new purchase before selling your current home. They're short-term (6-12 months) with higher rates but solve timing gaps.

Usually yes, unless you qualify for an appraisal waiver on conforming loan amounts. Jumbo refinances always require full appraisals in Los Angeles County.

These loans serve non-U.S. citizens without domestic credit or income. Expect 30-40% down and proof of foreign income or significant liquid assets.

Yes on primary residences. You'll need a gift letter stating the funds don't require repayment. Investment properties typically require your own funds only.

Pre-qualification is an estimate based on what you tell a lender. Pre-approval verifies income, assets, and credit — it's what Calabasas sellers actually want to see.

Lenders divide monthly debts by gross income. Most want 43% or less, though some jumbo programs allow up to 50% with strong compensating factors.

Locks guarantee your rate for 30-60 days while you close. Lock when you're in contract and comfortable with the rate, not during shopping.

Yes. Construction loans convert to permanent mortgages after the build completes. You'll need detailed plans, builder contracts, and 20-25% down minimum.

These loans qualify you using liquid assets instead of income. Lenders divide your assets by 360 months to calculate qualifying income — ideal for retirees.

Yes for short-term needs — fix-and-flips, quick closings, or credit issues. Expect 8-12% rates, high fees, and 12-month terms maximum.

HELOCs let you borrow against home equity with a revolving credit line. Rates vary, and you pay interest only on what you draw, not the full limit.

Yes if you're 62+. Reverse mortgages pay you monthly or in a lump sum using home equity. No monthly payments, but interest accrues until sale or death.

You'll need to cover the gap with cash, renegotiate price, or walk away. Lenders only finance based on appraised value, not purchase price.

Fifteen-year loans have higher payments but save massively on interest. Choose 30-year if you want flexibility or plan to invest the payment difference elsewhere.

Conventional with 3-5% down if you have 680+ credit. FHA works for lower credit, but most Calabasas homes exceed FHA limits anyway.

Yes with strong credit and reserves. Expect 25% down per property and proof you can cover all mortgages if rentals sit vacant temporarily.

We shop 200+ wholesale lenders instead of offering one bank's products. That competition gets you better pricing and more flexible underwriting options.

Your CPA provides a P&L showing business income instead of full tax returns. Lenders verify it's prepared by a licensed accountant, then underwrite normally.

Not necessarily. Pay off high-rate debt and anything pushing your debt-to-income over 43%. Student loans and car payments are fine if ratios work.

Conforming loans max at $806,500 in Los Angeles County. Above that, you need jumbo financing with no upper limit beyond what your income and assets support.