Claremont Mortgage FAQs – Expert Answers for Los Angeles County Homebuyers

FHA loans start at 580 credit, conventional at 620. Higher scores unlock better rates and lower down payments.

FHA requires 3.5%, conventional allows 3%, VA and USDA need zero. Higher down payments eliminate PMI on conventional loans at 20%.

Rates vary by borrower profile and market conditions. Your credit score, loan type, and down payment all shift your rate by 0.5-2%.

Most purchases close in 30-45 days. Cash-out refinances take 30-40 days, rate-and-term refinances 25-35 days.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns, avoiding the income reductions self-employed borrowers show on 1040s.

W-2 earners need paystubs, W-2s, and two months of bank statements. Self-employed need 12-24 months of bank statements or two years of tax returns.

Conventional loans require PMI under 20% down until you hit 20% equity. FHA charges MIP for the loan life on 3.5% down.

FHA allows 580 credit and 3.5% down but adds lifetime mortgage insurance. Conventional needs 620 credit, drops PMI at 20% equity.

Yes if you're a veteran or active military. VA loans require zero down, no PMI, and accept 580 credit scores.

Expect 2-5% of purchase price. This covers appraisal, title, escrow, lender fees, and prepaid taxes and insurance.

Only if you'll stay in the home long enough to recover the upfront cost. Each point costs 1% of the loan and drops your rate by roughly 0.25%.

Jumbo loans exceed $806,500 in Los Angeles County. They require stronger credit, larger reserves, and typically 10-20% down.

Yes. DSCR loans approve based on rental income, not your W-2. You need 20-25% down and the property must cash flow.

DSCR loans approve investors using property rent, not personal income. Lenders want 1.0-1.25 debt service coverage ratio.

Yes. ITIN loans work for foreign nationals and non-residents buying in Claremont, typically requiring 15-30% down.

ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years. They work if you'll sell or refinance before adjustment.

Yes on most loans. FHA and conventional allow family gifts with a signed letter, VA allows gifts from anyone.

3% on primary residences. Investment properties need 15-25% depending on credit and experience.

Lenders average 12-24 months of deposits and multiply by 1.0-1.5 to calculate income. No tax returns required.

Yes. FHA 203k and conventional renovation loans roll purchase and rehab into one loan, funding repairs at close.

Most lenders cap total debt at 43-50% of gross income. FHA stretches to 55% with strong credit and reserves.

Not for primary FHA or VA loans. Conventional often wants 2-6 months, investment properties 6-12 months depending on loan count.

FHA allows purchase two years after Chapter 7 discharge, four years after foreclosure. Conventional needs four years and seven years respectively.

Portfolio ARMs work for borrowers who don't fit agency boxes—multiple properties, complex income, or high debt ratios. Rates start higher but approval is easier.

Lenders approve 3-5 times your gross income depending on debts and down payment. Use 28% of gross income as a comfortable monthly payment ceiling.

Pre-qualification is an estimate based on what you tell a lender. Pre-approval verifies income, assets, and credit, giving you real buying power.

Yes once you hit 20% equity. Lenders require a new appraisal to confirm value before dropping PMI.

Cash-out refinances let you borrow against equity. Conventional maxes at 80% LTV, FHA allows 80%, investment properties typically cap at 75%.

Lock if you're happy with the rate and worried about increases. Float if you have time and think rates will drop.

You can pay the difference in cash, renegotiate price, or cancel if you have an appraisal contingency. Lenders won't fund above appraised value.

Yes if the complex is FHA or Fannie approved. Non-warrantable condos need portfolio lenders and 20-25% down.

Bridge loans let you buy before selling your current home. They're short-term, higher rate, and require equity in your existing property.

College families often use conventional or jumbo loans. Investors use DSCR loans for rental properties near campus or downtown.

Asset depletion loans qualify retirees or high-net-worth buyers using investment accounts instead of income. Lenders divide assets by 360 months to calculate qualifying income.

Yes. Foreign national loans require 20-40% down and accept foreign credit and income documentation without US credit history.

P&L loans use a CPA-prepared statement instead of tax returns. They work for self-employed borrowers who write off most income, requiring just 12-24 months in business.

You pay only interest for 5-10 years, then principal and interest. It lowers initial payments but doesn't build equity during the interest-only period.

Hard money loans fund quickly for fix-and-flip investors. Rates run 8-12%, terms last 6-24 months, and approval focuses on property value, not credit.

Only if they have an assumable FHA or VA loan. You'll need lender approval, and the rate stays with the original loan.

HELOCs are revolving credit lines with variable rates. Home equity loans provide a lump sum at a fixed rate, functioning like a second mortgage.