Question 1

What credit score do I need to buy a home in Duarte?

Accepted Answer

Most conventional loans require 620 minimum, though FHA accepts 580 with 3.5% down. We can work with scores as low as 500 on certain programs if you have compensating factors.

Question 2

How much should I save for a down payment in Duarte?

Accepted Answer

Conventional loans start at 3% down for first-time buyers, FHA at 3.5%. Expect higher down payments for investment properties or jumbo loans in the area.

Question 3

What documents do I need to get pre-approved?

Accepted Answer

Standard W-2 buyers need two years tax returns, 30 days paystubs, and 60 days bank statements. Self-employed borrowers face more documentation requirements depending on loan type.

Question 4

How long does it take to close on a Duarte home?

Accepted Answer

Most purchase loans close in 25-35 days. Appraisal turnaround in LA County can stretch timelines if appraiser availability is tight.

Question 5

Should I get pre-qualified or pre-approved?

Accepted Answer

Pre-approval carries weight in competitive Duarte offers. Pre-qualification means nothing since it skips credit and income verification.

Question 6

Can I buy a home in Duarte if I'm self-employed?

Accepted Answer

Yes, we have bank statement loans, 1099 loans, and P&L statement programs for self-employed buyers. These replace tax returns with 12-24 months of business documentation.

Question 7

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life on most loans. Conventional loans drop PMI once you hit 20% equity.

Question 8

Do I qualify for a USDA loan in Duarte?

Accepted Answer

No, Duarte doesn't qualify for USDA rural housing loans. The city falls outside eligible zones due to its proximity to Los Angeles metro.

Question 9

What are closing costs in Duarte typically?

Accepted Answer

Expect 2-5% of purchase price covering lender fees, title, escrow, and prepaid taxes. LA County transfer tax adds to that total.

Question 10

Can I use a VA loan to buy in Duarte?

Accepted Answer

Yes, if you're an eligible veteran or active duty service member. VA loans offer zero down payment and competitive rates with no mortgage insurance.

Question 11

What's the benefit of working with a mortgage broker?

Accepted Answer

We shop 200+ lenders to find better rates and programs than retail banks offer. One application gets you multiple loan options instead of one bank's limited menu.

Question 12

Should I pay points to lower my rate?

Accepted Answer

Only if you plan to keep the loan long enough to recoup the upfront cost. Most buyers break even after 3-5 years depending on point cost.

Question 13

What's a jumbo loan and when do I need one?

Accepted Answer

Jumbo loans exceed conforming limits, which is $1,249,125 in LA County for 2026. They require stronger credit and larger down payments than conventional loans.

Question 14

Can I buy an investment property in Duarte?

Accepted Answer

Yes, we offer investor loans including DSCR programs that qualify based on property cash flow instead of personal income. Expect 15-25% down for rental properties.

Question 15

What's a DSCR loan and who needs it?

Accepted Answer

DSCR loans qualify investors using property rental income, not tax returns. They work well for buyers with multiple properties or complex tax situations.

Question 16

Do I need mortgage insurance on a conventional loan?

Accepted Answer

Yes, if you put down less than 20%. PMI drops automatically at 78% loan-to-value or by request at 80% once you build equity.

Question 17

Can I get a mortgage with an ITIN instead of a Social Security number?

Accepted Answer

Yes, we have ITIN loan programs for foreign nationals and non-resident buyers. These require larger down payments and have different documentation requirements.

Question 18

What's the difference between a fixed-rate and adjustable-rate mortgage?

Accepted Answer

Fixed rates never change over the loan term. ARMs offer lower initial rates that adjust after 5, 7, or 10 years based on market indexes.

Question 19

Should I consider an ARM in the current market?

Accepted Answer

ARMs make sense if you plan to sell or refinance before the rate adjusts. They start 0.50-1.00% lower than fixed rates but carry future rate risk.

Question 20

How do bridge loans work for Duarte buyers?

Accepted Answer

Bridge loans let you buy before selling your current home. They're short-term financing with higher rates, typically paid off within 6-12 months.

Question 21

Can I use gift money for my down payment?

Accepted Answer

Yes, most loan programs allow gift funds from family members. You'll need a gift letter stating the money doesn't require repayment.

Question 22

What's an asset depletion loan?

Accepted Answer

These loans qualify borrowers using investment accounts instead of W-2 income. Lenders divide your assets by 360 months to calculate qualifying income.

Question 23

Do I need an appraisal for every loan type?

Accepted Answer

Most purchase loans require full appraisals. Some refinances qualify for appraisal waivers if you have strong equity and Fannie/Freddie backing.

Question 24

What credit issues prevent mortgage approval?

Accepted Answer

Recent bankruptcies, foreclosures, short sales, and charge-offs cause problems. Most programs require 2-4 years waiting periods depending on severity.

Question 25

Can I buy a fixer-upper in Duarte with a mortgage?

Accepted Answer

FHA 203k and conventional renovation loans let you finance purchase plus repairs in one loan. Standard mortgages won't fund homes needing major work.

Question 26

How does debt-to-income ratio affect my loan approval?

Accepted Answer

Most programs cap DTI at 43-50% depending on credit and reserves. We calculate your monthly debts divided by gross monthly income to determine eligibility.

Question 27

What's a rate lock and when should I lock?

Accepted Answer

Rate locks guarantee your rate for 30-60 days during closing. Lock when you're satisfied with the rate since you can't drop lower if rates improve.

Question 28

Can I get a mortgage if I just started a new job?

Accepted Answer

Most lenders want two years employment history, but same-industry job changes work fine. Career changes require longer history or larger down payments.

Question 29

What's the difference between interest rate and APR?

Accepted Answer

Interest rate is your monthly payment calculation. APR includes lender fees and closing costs spread over the loan term, showing true borrowing cost.

Question 30

Do I need homeowners insurance before closing?

Accepted Answer

Yes, lenders require proof of insurance before funding your loan. You'll need coverage effective on closing day with the lender listed as mortgagee.

Question 31

What's a portfolio ARM and when does it make sense?

Accepted Answer

Portfolio ARMs are adjustable loans held by individual lenders with flexible guidelines. They work for complex income situations that don't fit agency lending boxes.

Question 32

Can I refinance soon after buying in Duarte?

Accepted Answer

Most programs require 6-12 months seasoning before cash-out refinancing. Rate-and-term refinances may qualify sooner if rates drop significantly.

Question 33

What's a Community Mortgage and who qualifies?

Accepted Answer

Community Mortgages use alternative credit data for borrowers with thin credit files. They consider rent and utility payments to establish creditworthiness.

Question 34

How do interest-only loans work?

Accepted Answer

You pay only interest for 5-10 years, then principal and interest after. These work for buyers expecting income growth or planning to sell before full payments start.

Question 35

Should I get a home equity line of credit after buying?

Accepted Answer

HELOCs provide emergency funds or renovation financing using your equity. Wait until you build at least 15-20% equity before applying.

Duarte Mortgage FAQs: Your Questions Answered by Local Brokers