Covina Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans allow 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though stronger scores get better rates.

FHA requires 3.5% down, conventional allows 3% for first-time buyers. VA and USDA loans offer zero down for qualified borrowers.

Yes, if you qualify for VA or USDA loans. VA serves military members and veterans, while USDA has income limits and property location requirements.

Expect 30-45 days from application to closing for purchase loans. Refinances often close faster, around 25-35 days depending on appraisal turnaround.

No, but local brokers know Los Angeles County appraisal timelines and which lenders move fast here. We access 200+ lenders regardless of location.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers need full returns with schedules.

Traditional loans average your tax returns over two years, which hurts if you write off income. Bank statement loans use deposits instead, typically 12-24 months.

FHA allows lower credit and smaller down payments but charges mortgage insurance for life on most loans. Conventional drops PMI at 20% equity.

15-year loans save massive interest but double your payment. Most Covina buyers take 30-year terms for flexibility, then pay extra when able.

Expect 2-5% of purchase price covering lender fees, title insurance, escrow, and appraisal. Seller credits can reduce your cash needed.

Yes, sellers can contribute up to 3-6% depending on loan type and down payment. Your offer price adjusts to reflect this concession.

Private mortgage insurance protects lenders when you put down less than 20%. Avoid it with 20% down, piggyback loans, or lender-paid options.

We lack current market data for Covina specifically. Contact us for live pricing trends and neighborhood-level guidance from recent closings.

This depends on your budget and priorities. We analyze recent sales and lending patterns to identify opportunities matching your criteria.

Yes, most loan programs allow gifted funds from family members. You'll need a gift letter stating no repayment is expected.

Jumbo loans exceed conforming limits, currently $766,550 in Los Angeles County. They require stronger credit and larger down payments than conventional loans.

Adjustable rate mortgages offer lower initial rates that adjust after a fixed period. A 5/1 ARM stays fixed for five years, then adjusts annually.

DSCR loans qualify investors based on rental income, not personal income. They work for buyers with complex tax returns or multiple properties.

Yes, DSCR loans skip income docs entirely. They approve based on whether rent covers the mortgage, typically requiring 1.0-1.25 debt coverage.

Bank statement loans use 12-24 months of deposits to calculate income instead of tax returns. They help self-employed buyers who write off income.

Not always. Bank statement, DSCR, and asset depletion loans skip tax returns entirely, though they charge higher rates than conventional programs.

Yes, ITIN loans serve borrowers without Social Security numbers. They require larger down payments and proof of payment history on housing.

Portfolio ARMs are held by lenders instead of sold to Fannie Mae. They offer flexibility for unique income situations with adjustable rates.

Your debt-to-income ratio matters more than raw income. Most loans allow 43-50% DTI, meaning debts can't exceed half your gross monthly income.

Yes, but most loans won't fund if the home fails appraisal safety standards. FHA 203k and construction loans let you finance repairs into the mortgage.

Pre-qualification is an estimate based on what you tell a lender. Pre-approval involves credit checks and document review, carrying actual weight with sellers.

Discount points make sense if you'll keep the loan long enough to recoup the cost. Break-even is typically 3-5 years depending on the rate reduction.

Yes, after waiting periods. FHA allows purchases two years after bankruptcy discharge, three years after foreclosure, depending on circumstances.

Bridge loans provide short-term financing when you need to buy before selling your current home. They're expensive but solve timing gaps conventional loans can't.

You pay only interest for an initial period, typically 10 years, keeping payments low. Then payments jump when principal amortization begins.

Yes, foreign national loans serve non-U.S. citizens buying investment or second homes. They require larger down payments, typically 30-40%.

These loans qualify you based on liquid assets rather than income. Lenders divide your assets by the loan term to calculate monthly income.

VA loans offer zero down payment and no PMI for veterans and active military. They limit fees and often provide the lowest rates available.

USDA loans require zero down but restrict income and property location. Most of Covina doesn't qualify as rural, limiting USDA eligibility here.

Home equity lines of credit let you borrow against home equity like a credit card. You draw and repay repeatedly during a 10-year draw period.

HELOCs are revolving credit lines with variable rates. Home equity loans provide a lump sum with fixed rates and set repayment terms.

Yes, through a rate-and-term refinance. You'll need to qualify based on your income alone and have enough equity to avoid PMI if possible.

You can pay the difference in cash, renegotiate the price, or cancel if you have an appraisal contingency. Low appraisals kill many overpriced deals.

Initial approval takes 1-3 days after submitting complete docs. Full clear-to-close requires appraisal and underwriting, adding 20-30 days total.

Absolutely. Rates vary by borrower profile and market conditions, but we shop 200+ lenders to find the lowest rate for your specific situation.