Commerce Mortgage FAQs: Your Questions Answered by Local Loan Experts

FHA loans start at 580, but you'll get better rates at 620+. Conventional loans typically need 620 minimum, though some portfolio lenders go lower for strong compensating factors.

FHA requires 3.5% down, conventional loans allow 3-5% for primary homes. Investment properties need 15-25% depending on the loan program and property type.

Yes, ITIN loans work for buyers without Social Security numbers. You'll need 15-20% down and proof of income through tax returns or bank statements.

Bank statement loans use 12-24 months of deposits instead of tax returns. Profit & Loss statement programs work too, but lenders scrutinize them harder than bank statements.

Conventional and FHA loans close in 21-30 days. Portfolio loans and bank statement programs take 30-45 days due to extra underwriting review.

You'll pay PMI on conventional loans under 20% down until you hit 20% equity. FHA charges upfront and monthly insurance for the loan's life in most cases.

W-2 buyers need two years tax returns, 60 days paystubs, and two months bank statements. Self-employed borrowers add business tax returns and a year-to-date profit & loss statement.

Investment properties require 15% down minimum, typically 20-25% for best rates. DSCR loans focus on rental income instead of personal income for approval.

FHA accepts 580 credit and 3.5% down but charges mortgage insurance for life. Conventional needs 620+ credit, allows PMI removal at 20% equity, and offers better rates above 740.

DSCR loans approve based on rental income covering the mortgage payment. No personal income verification needed, but you'll need 20-25% down and 640+ credit.

Yes, FHA and conventional loans allow gifted down payments from family. You'll need a gift letter stating the money doesn't require repayment.

Expect 2-5% of the purchase price for closing costs. This includes lender fees, title insurance, escrow, and recording fees in Los Angeles County.

Points make sense if you're keeping the loan 5+ years. One point costs 1% of the loan and drops your rate about 0.25%.

Bank statement loans use deposits to calculate income instead of tax returns. Perfect for self-employed buyers who write off significant business expenses.

FHA 203(k) loans cover purchase price plus renovation costs in one loan. The property must meet minimum safety standards before you can close.

Most lenders cap DTI at 43-50% including your new mortgage payment. FHA allows up to 56.99% with strong credit and cash reserves.

Brokers shop 200+ lenders to find programs banks don't offer. We see approval when your bank says no, especially for self-employed and investor clients.

Yes, same programs that work for purchase work for refinance. Bank statement and 1099 loans handle self-employed income without full tax return review.

Jumbo loans exceed $806,500 in Los Angeles County. They require 10-20% down, 680+ credit, and stronger income documentation than conforming loans.

ARMs start 0.5-1% lower than fixed rates but adjust after 5, 7, or 10 years. They work if you're selling or refinancing before the adjustment period ends.

Yes, foreign national loans require 20-40% down depending on visa status. No US credit history needed, but you'll need foreign bank statements and income proof.

Asset depletion loans qualify you using investment accounts divided by 360 months. Retirees and high-net-worth buyers use these when income doesn't show on tax returns.

Investment properties need 6-12 months reserves depending on how many properties you own. Primary homes rarely require reserves unless DTI is high.

Bridge loans let you buy before selling your current home. Rates run 7-10%, terms last 6-12 months, and you'll need strong equity in your existing property.

FHA finances 2-4 unit properties with 3.5% down if you live in one unit. Rental income from other units helps you qualify.

Recent foreclosure, bankruptcy under two years old, or active collections over $2,000 typically block approval. Disputes on your credit report freeze underwriting.

You pay only interest for 10 years, then principal and interest after. Payment jumps significantly when the interest-only period ends.

Pre-qualification is an estimate based on what you tell us. Pre-approval means underwriting reviewed your documents and verified your ability to borrow.

No, VA loans require owner occupancy. You can buy a multi-unit and rent extra units, but one unit must be your primary residence.

Construction loans fund in draws as building progresses. You'll need 20-25% down, detailed plans, and a licensed contractor before approval.

HELOCs let you borrow against home equity with a credit line. Rates adjust monthly, making them better for short-term needs than long-term borrowing.

Late payments under 30 days don't report to credit bureaus. Anything 30+ days late in the past 12 months makes approval harder unless you have a solid explanation.

Lenders use 75% of lease agreement rent or tax return Schedule E income. You'll need a signed lease and proof the tenant is paying.

Rates vary by credit score, down payment, and loan type. We shop 200+ lenders daily to find your best rate based on your specific borrower profile.

Yes, if it's permanently attached to land you own. FHA and conventional loans finance manufactured homes, but rates run slightly higher than site-built properties.