Compton Mortgage FAQs: Your Questions Answered by Local Experts

FHA loans start at 580 for 3.5% down, 500 with 10% down. Conventional typically requires 620, though some investors go lower with compensating factors.

FHA requires 3.5%, conventional allows 3% for first-timers, and VA/USDA offer zero down. Investors typically need 15-25% depending on the loan program.

Absolutely—we close these weekly. Bank statement loans use 12-24 months of deposits instead of tax returns, which works better for most 1099 earners.

Purchase loans average 25-35 days. Refinances run 20-30 days unless appraisal delays hit, which happens occasionally in this market.

Almost always yes for purchases. Some portfolio lenders skip appraisals on small refinances with strong equity, but that's the exception.

Yes—ITIN loans work great in Compton. You'll need 15-20% down, 12 months reserves, and solid payment history on rent or other credit.

FHA allows lower credit and smaller down payments but charges permanent mortgage insurance. Conventional drops PMI at 80% loan-to-value and offers better rates above 700 credit.

Yes, and they're unbeatable for veterans—zero down, no PMI, competitive rates. The home just needs to meet minimum property standards, which most Compton houses do.

FHA 203k and conventional renovation loans both work. Hard money is faster for heavy rehabs if you're flipping or plan to refinance within 12 months.

W-2 borrowers need two years tax returns, recent paystubs, two months bank statements. Self-employed add business returns and often bank statements if we're skipping tax documentation.

You get access to 3% down conventional loans and some county assistance programs. Credit unions sometimes offer special first-timer rates—we check those automatically.

Expect 2-4% of purchase price. That includes lender fees, title, escrow, and prepaid items like property taxes and insurance reserves.

Yes—sellers can contribute up to 3% on conventional loans, 6% on FHA/VA/USDA. Investors often negotiate this in slower markets.

Private mortgage insurance covers lenders when you put down less than 20%. Avoid it by hitting 20% down, using VA loans, or piggyback financing with a second mortgage.

Only if you're keeping the loan 5+ years. Break-even is typically 48-60 months, so buyers planning to sell or refinance soon should skip points.

Yes—FHA allows up to four units if you occupy one. You'll need 3.5% down and rental income from other units can help you qualify.

Debt Service Coverage Ratio loans qualify you on rental income, not personal income. Investors who own multiple properties or have complex tax returns use these heavily.

No—Compton is too urban for USDA rural development loans. Look at FHA or conventional 3% down programs instead for low down payment options.

Yes, but the second lien holder must agree to subordinate or you'll need to pay it off. Cash-out refinances often consolidate both into one new loan.

Pre-qualified is an estimate based on what you told us. Pre-approved means we verified income, assets, and credit—sellers take these seriously.

Conventional and VA typically offer the best rates. FHA runs slightly higher, and non-QM loans like bank statement programs add 1-2% for the flexibility.

Yes—conventional investor loans allow 15% down on single-family rentals. Expect higher rates than owner-occupied purchases and six months reserves.

Bridge loans let you buy before selling your current home. They're expensive but useful in competitive situations where you can't make offers contingent on selling.

ARMs make sense if you're selling within 5-7 years or expect rates to drop. The initial rate discount is substantial—often 0.75-1.5% below fixed rates.

Yes—family gifts work on most loan types. You'll need a gift letter stating it's not a loan, plus documentation of the transfer to your account.

You can negotiate price down, bring extra cash, or walk if you have an appraisal contingency. Sellers in Compton sometimes split the difference on tight deals.

Only if you're in a FEMA flood zone, which is rare here. Your lender will order a flood certification during the loan process to determine requirements.

Yes—once you hit 20% equity through payments or appreciation, request removal. Lenders may require a new appraisal to verify current value.

Conventional investor loans want 680 minimum. DSCR programs sometimes go to 640, but you'll pay higher rates and need more reserves.

We average your monthly deposits over 12 or 24 months, then apply an expense ratio—typically 25-50%. Higher revenues don't always mean higher qualification if deposits fluctuate.

Yes, but it's complex. Lenders need 12-24 months transaction history, stable conversion to USD, and often treat it like self-employment income with expense ratios applied.

These aren't sold to Fannie or Freddie, so lenders can bend guidelines on credit, income documentation, or property condition. Rates run higher but approval odds improve.

Lock if you're risk-averse or closing soon—most locks run 30-45 days. Float if you have time and think rates will drop, but you're gambling on timing.

If it's permanently affixed to land you own, FHA and conventional loans both work. Mobile homes in parks typically require specialized financing with higher rates.

Lenders qualify you by dividing liquid assets by loan term—$600K in stocks divided by 360 months equals $1,667 monthly income. Retirees with assets but no W-2 use these.

Yes—coverage must be in place at closing with the lender named as loss payee. Shop this early because some carriers avoid certain Compton ZIP codes.

No—mortgages don't transfer between properties in the US. You'll refinance or get a new purchase loan, though some lenders offer repeat customer discounts.

Interest-only loans defer principal payments for 5-10 years, lowering monthly costs but building zero equity. Investors use these for cash flow, not wealth building.

CPAs provide a P&L instead of full tax returns—useful for newer businesses without two-year tax history. Lenders verify the CPA's license and may add back certain expenses.

Not forever—Chapter 7 requires two years wait for conventional, Chapter 13 allows one year with payment history. FHA has similar timelines with documented credit rebuilding.