Diamond Bar Mortgage FAQs: Your Questions Answered by Local Brokers

Most purchase loans close in 25-35 days. Refinances move faster at 20-30 days since there's no purchase contract deadline pushing things.

FHA loans start at 580 for 3.5% down. Conventional loans want 620 minimum, though rates improve significantly above 680.

Conventional loans allow 3% down for first-time buyers. Most repeat buyers put 10-20% down to avoid PMI and secure better rates.

PMI applies when you put less than 20% down on conventional loans. FHA charges mortgage insurance regardless of down payment size.

W-2 earners need two years of tax returns, recent pay stubs, and two months of bank statements. Self-employed borrowers need two years of business returns plus personal returns.

Yes. Bank statement loans use 12-24 months of deposits to calculate income instead of tax returns, which works well for business owners who write off expenses.

FHA allows lower credit scores and 3.5% down but charges mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity and offer better rates for strong credit.

15-year loans save huge interest costs but double your monthly payment. Most Diamond Bar buyers choose 30-year terms for lower payments and flexibility.

Expect 2-5% of the loan amount. This includes lender fees, title insurance, escrow, appraisal, and county recording fees specific to Los Angeles County.

Yes. ITIN loans require larger down payments, typically 15-20%, and use alternative credit documentation like rent and utility payment history.

Jumbo loans exceed conforming limits, currently $766,550 in Los Angeles County. They require stronger credit, more reserves, and typically 10-20% down.

Being in LA County means higher conforming loan limits than most of California. The suburban setting and good schools make homes here easier to appraise than urban properties.

DSCR loans qualify investors based on rental income, not personal income. Popular for Diamond Bar investment properties since approval depends on the property's cash flow.

Yes, if you're a qualifying veteran or active military. VA loans offer 0% down with no PMI and work well for Diamond Bar's price range.

ARMs start with lower rates than fixed mortgages. Good if you'll move or refinance within 5-7 years, which many Diamond Bar buyers do.

Lenders want your total monthly debts including the new mortgage under 50% of gross income. Higher ratios work with strong credit or larger down payments.

Lenders analyze 12 or 24 months of business bank deposits to calculate income. This bypasses tax returns and works for self-employed borrowers with strong cash flow.

Each point costs 1% of the loan amount and drops your rate about 0.25%. Worth it if you'll keep the loan beyond five years.

FHA 203k and conventional renovation loans fund both purchase and repairs in one loan. Requires detailed contractor bids and draws during construction.

Bridge loans let you buy before selling your current home. Short-term financing that gets paid off when your old house closes.

Most programs cap DTI at 43-50%. Higher ratios require compensating factors like excellent credit, large down payments, or significant cash reserves.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit through documentation.

Maybe. Two years in the same field usually works even with a recent job change, especially if you got a raise or promotion.

Lenders divide your liquid assets by 360 months to calculate qualifying income. Works for retirees or people with significant investments but low W-2 income.

You pay only interest for 5-10 years, then payments jump when principal payments start. Used by high-income buyers expecting significant future earnings growth.

Adjustable-rate mortgages held by the lender instead of sold to Fannie or Freddie. More flexible underwriting for unique situations or properties.

Yes. Foreign national loans require 20-40% down and don't need US credit history or Social Security numbers, just passport and visa documentation.

Reserves are liquid assets after closing covering future mortgage payments. Requirements range from 2-12 months depending on loan type and risk factors.

HELOCs let you borrow against home equity with a revolving credit line. You draw what you need during a 10-year period, then repay over 20 years.

Short-term loans based on property value, not borrower credit. Used for fix-and-flip projects or bridge financing when traditional loans won't work.

Yes, once you hit 20% equity through payments or appreciation. Request cancellation in writing and you may need a new appraisal to prove current value.

Specialized financing that pays out in draws as your home gets built. Requires detailed plans, licensed contractors, and converts to permanent financing when construction completes.

CPAs prepare a P&L showing business income. Less documentation than full tax returns but requires at least 12 months of self-employment history.

You can renegotiate the price, increase your down payment to cover the gap, or walk away if you have an appraisal contingency in your contract.

Rate locks protect you from increases during escrow, typically 30-60 days. Float if you think rates will drop, but you risk increases if markets move against you.

Yes. FHA loans work on 2-4 unit properties with 3.5% down if you'll live in one unit. Conventional loans require 15% down for 2 units, 25% for 3-4 units.

Loan officers work for one lender offering their products. Brokers like us shop 200+ lenders to find the best rate and program for your situation.

Mortgage rates shift daily based on bond markets and economic data. Rate changes between morning and afternoon aren't unusual during volatile periods.