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Carson Mortgage FAQ
Carson sits between the 405 and 110 freeways, pulling buyers who want LA County access without LA County prices. We field hundreds of questions from Carson buyers each year.
Most questions hit the same points: qualifying with non-W-2 income, navigating condo approvals near the refinery zone, and timing purchases in this market. We've compiled answers from real deals we've closed here.
Carson attracts self-employed buyers, investors eyeing rental demand near the StubHub Center, and families stretching from pricier South Bay markets. Different borrower types need different loan structures.
Pre-approval takes 1-2 days with documents ready. Full underwriting to closing runs 21-30 days for purchase loans, faster for refinances with equity.
FHA accepts 580 with 3.5% down, but 620 opens conventional options with better rates. Scores above 700 unlock the most loan programs and pricing tiers.
Yes, conventional loans allow 3% down for primary residences. You'll pay PMI until you hit 20% equity, but monthly costs often beat renting.
No. Lender-paid PMI and piggyback loans eliminate monthly PMI with less than 20% down. We structure these regularly for Carson buyers keeping cash reserves.
W-2 borrowers: two years tax returns, recent paystubs, two months bank statements. Self-employed: add business returns and P&L statements through last quarter.
Some are. Lenders review HOA budgets and reserve levels before approving condo financing. Non-warrantable condos near industrial zones need portfolio lenders.
Carson typically runs 15-25% below Torrance and Redondo Beach. You trade beach proximity for freeway access and more space per dollar.
Bank statement loans work for most. Lenders analyze 12-24 months of deposits instead of tax returns, capturing income you wrote off.
Absolutely. We close them constantly for Carson business owners showing strong deposit history but lower taxable income due to deductions.
If you served and have VA eligibility, yes. Carson has no VA loan limits in 2024, and you can buy with zero down.
Expect 2-4% of purchase price. Includes lender fees, title, escrow, appraisal, and prepaid taxes and insurance going into impound accounts.
Only if you're keeping the loan 5+ years. One point costs 1% of loan amount and drops rate about 0.25%, taking years to break even.
No. FHA requires owner occupancy for 12 months minimum. Investment properties need conventional, DSCR, or portfolio loans with higher down payments.
DSCR loans approve based on rental income, not your W-2. Carson investors use them for properties generating 1.0x or higher rent-to-payment ratios.
Monthly rent should cover 100% of the mortgage payment (1.0 DSCR minimum). Higher ratios unlock better rates and easier approval.
Yes, if documented properly. Current leases add to qualifying income; future rent on the purchased property can offset the new payment.
FHA allows lower credit (580 vs 620) and smaller down payments but charges permanent mortgage insurance. Conventional drops PMI at 20% equity.
Not always. Bank statement loans verify deposits without tax returns, useful for cash-heavy businesses like contractors, retailers, or restaurant owners common in Carson.
Yes. Foreign national loans require 20-30% down and focus on US credit or property value rather than domestic income documentation.
ITIN loans serve borrowers without Social Security numbers. You qualify using Individual Taxpayer ID, tax returns, and stable income history.
ARMs start with lower fixed rates for 5, 7, or 10 years, then adjust annually. They make sense if you'll sell or refinance before adjustment.
15-year mortgages save massive interest but double monthly payments. Most Carson buyers choose 30-year terms for payment flexibility and invest the difference.
Yes, once you hit 20% equity through payments or appreciation. Refinancing resets the loan but eliminates monthly PMI going forward.
Jumbo loans exceed conforming limits, currently $766,550 in LA County. Most Carson purchases stay below this, but higher-end homes near Rolling Hills need jumbos.
Lenders cap total debts at 43-50% of gross income. Lower DTI means easier approval and better rates on all Carson loan programs.
Yes, if you live in one unit. FHA allows up to four units with owner occupancy, making duplexes attractive for house-hacking strategies.
Portfolio ARMs work for complex income scenarios like multiple LLCs or foreign income. Lenders hold these loans instead of selling them, allowing flexible underwriting.
Most lenders require monthly impounds into escrow, paying taxes twice yearly on your behalf. This spreads the cost but locks up cash.
FHA allows purchases two years after Chapter 7 discharge with credit rebuilding. Conventional loans require four years but offer better terms once eligible.
Asset depletion loans qualify you using investment accounts divided by loan term. Retirees and high-net-worth buyers with low W-2 income use them regularly.
You pay only interest for 10 years, then payments jump when principal starts amortizing. Investors and high-income buyers use them for cash flow flexibility.
Yes. Family gifts work on most loan types with a signed letter confirming no repayment required. Down payment assistance programs exist too.
You renegotiate price, bring extra cash to close, or walk if you have an appraisal contingency. Low appraisals happen more often in shifting markets.
Lock when you're satisfied with the rate, especially 30+ days from closing. Floating risks higher rates but captures drops in volatile markets.
FHA 203k and conventional renovation loans roll purchase and repair costs into one mortgage. You need detailed contractor bids and draw schedules.
Multiple mortgage inquiries within 45 days count as one pull. Auto and credit card applications do hurt your score, so pause non-mortgage credit shopping.
Yes. Lenders add HOA dues to your debt-to-income calculation, reducing how much home you qualify for compared to non-HOA properties.
No. Mortgages aren't portable—you need a new loan at current rates. Some buyers rent out existing homes to keep low rates on those properties.
Base rate runs about 1.1% of assessed value, plus Mello-Roos in newer developments. Your purchase price becomes the new assessed value under Prop 13.
Compare APR, not just rate. APR includes fees and shows true cost. Also check locking period, because low rates mean nothing if you can't close in time.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.