Duarte Mortgage FAQs: Your Questions Answered by Local Brokers

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.

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.

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.

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

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

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.

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.

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

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

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.

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.

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.

Jumbo loans exceed conforming limits, which is $806,500 in LA County for 2024. They require stronger credit and larger down payments than conventional loans.

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.

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

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.

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

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.

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.

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.

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

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

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

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

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

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.

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.

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

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

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

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.

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

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

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.

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