Cudahy Mortgage FAQs: Your Questions Answered by Local Loan Experts

FHA loans start at 580 for 3.5% down, or 500 with 10% down. Conventional loans typically require 620 minimum, though some programs accept lower scores.

Yes, through ITIN loans designed for taxpayers without SSNs. These require larger down payments, usually 15-20%, and proof of tax filing history.

FHA requires 3.5%, conventional loans allow 3%, and VA loans offer zero down for veterans. Investment properties typically need 15-25% depending on loan type.

W-2 earners need paystubs, tax returns, and bank statements. Self-employed borrowers can use bank statements, 1099s, or profit-loss statements depending on the loan program.

Conventional and FHA loans close in 21-30 days typically. Bank statement and asset depletion loans may add 5-10 days for underwriting review.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan life. Conventional loans drop PMI at 80% loan-to-value and offer better rates for strong credit.

Yes, bank statement loans calculate income from deposits over 12-24 months. This works well for self-employed borrowers who write off business expenses.

Veterans, active military, and qualifying spouses can use VA loans with zero down and no PMI. You need a Certificate of Eligibility and minimum 580 credit score.

Expect 2-5% of the purchase price for lender fees, title, escrow, and prepaid items. Some programs allow seller concessions to cover portions of these costs.

Yes, DSCR loans approve based on rental income, not personal income, with 15-20% down. The property's rent must cover the mortgage payment by a required ratio.

Lenders cap total debt at 43-50% of gross monthly income for most programs. Your housing payment plus other debts should stay within that limit.

Private mortgage insurance costs 0.3-1.5% annually on loans above 80% LTV. It drops automatically at 78% LTV or by request at 80%.

Yes, foreign national loans require 20-30% down and don't need U.S. credit or work authorization. Rates run higher than conventional programs.

Debt Service Coverage Ratio loans approve on rental income alone, not your W-2 or 1099. Real estate investors use these to scale portfolios without income limits.

15-year loans save thousands in interest but require higher monthly payments. 30-year terms offer lower payments and more cash flow flexibility.

Most programs require 2-4 years after bankruptcy or foreclosure. FHA accepts 1-2 years in some cases with strong compensating factors.

One point equals 1% of the loan amount and typically reduces your rate by 0.25%. Pay points if you plan to keep the loan past the break-even period.

ARMs offer lower initial rates fixed for 3, 5, 7, or 10 years, then adjust annually. They make sense if you'll sell or refinance before adjustment.

Yes, most programs allow gifted funds from family members with a signed letter. FHA requires 3.5% from your own funds on some transactions.

Conventional investor loans need 15% for single-family properties. DSCR and portfolio loans may require 20-25% depending on the deal.

Traditional loans require 2 years of tax returns showing stable income. Bank statement and 1099 loans skip tax returns and underwrite deposits or gross receipts.

FHA 203k and conventional renovation loans roll purchase and repair costs into one mortgage. Hard money or bridge loans work for properties needing major work.

These loans calculate income by dividing liquid assets by 360 months. Retirees or high-net-worth buyers with low reported income use this program.

Investment properties typically require 6 months of reserves. Primary homes may need 2-6 months depending on credit, down payment, and loan type.

You pay only interest for 5-10 years, then principal and interest for the remaining term. These lower initial payments but delay equity building.

Jumbo loans exceed conforming limits and require stronger credit, larger down payments, and more reserves. Rates vary by borrower profile and market conditions.

Pre-qualification estimates what you might afford based on stated info. Pre-approval verifies income, assets, and credit through full underwriting review.

FHA charges 1.75% upfront plus 0.55-0.85% annually depending on loan amount and term. This insurance stays for the life of most FHA loans.

Yes, lenders count 75% of documented rental income on primary residence purchases. DSCR loans use 100% of market rent for investment properties.

Portfolio ARMs are held by lenders rather than sold to Fannie or Freddie, allowing flexible underwriting. They fit borrowers with non-traditional income or properties.

Most programs cap DTI at 43-50%, though bank statement and DSCR loans may allow higher. Lower DTI improves your rate and approval odds.

Most lenders require 6-12 months of payment history before refinancing. Rate-and-term refinances typically need less seasoning than cash-out transactions.

Bridge loans provide short-term financing to buy before selling your current home. They charge higher rates but prevent contingent offers in competitive markets.

Construction loans pay out in draws as work progresses, then convert to permanent financing. You need detailed plans, contractor bids, and larger down payments.

Rates vary by borrower profile and market conditions. FHA and conventional typically offer the lowest rates, while non-QM programs price higher for added flexibility.