Loading
El Monte Mortgage FAQ
El Monte offers affordable entry points into Los Angeles County homeownership. Most buyers here need flexible documentation options since many work in retail, hospitality, or run small businesses.
We handle complex income scenarios daily. Bank statement loans and ITIN programs work well for El Monte's self-employed and immigrant communities.
This guide answers real questions from El Monte borrowers. We've helped hundreds of buyers in this market and know which loans actually close.
FHA loans accept 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though some portfolio lenders go lower with compensating factors.
Yes, ITIN loans let foreign nationals and non-residents purchase property. You'll need larger down payments—typically 15-25%—and provide tax ID documentation.
FHA requires 3.5% down, conventional loans 3-5% for primary residences. Investment properties need 15-25% depending on the loan program.
Your monthly debt payments including the new mortgage shouldn't exceed 43-50% of gross income. Self-employed buyers can qualify using bank statements instead of tax returns.
No. Bank statement loans use 12-24 months of business or personal bank deposits to calculate income without tax returns.
Purchase loans typically close in 21-30 days. Cash-out refinances take 30-45 days due to mandatory waiting periods.
Bring two years of tax returns, 60 days of pay stubs, two months of bank statements, and photo ID. Self-employed borrowers can skip tax returns with alternative programs.
FHA works better with credit under 680 or minimal down payment savings. Conventional offers lower monthly costs if you have 5%+ down and 700+ credit.
Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified your income, assets, and credit—sellers take these seriously.
Yes, DSCR loans approve based on rental income only—no personal income verification needed. You need 20-25% down and positive cash flow from the property.
Rates vary by borrower profile and market conditions. Your credit score, loan amount, and down payment affect your specific rate—we shop 200+ lenders for best pricing.
Conventional loans require PMI below 20% down but you can remove it later. FHA charges mortgage insurance for the loan's life unless you put 10%+ down.
Yes, FHA allows 2-4 unit purchases with just 3.5% down if you live in one unit. Rental income from other units helps you qualify.
Bank statement loans use deposits to prove income instead of tax returns. Perfect for self-employed borrowers who write off substantial business expenses.
Expect 2-4% of purchase price for buyer closing costs. This includes lender fees, title insurance, escrow, and appraisal—sellers sometimes contribute to reduce your upfront cash.
Yes, VA loans require no down payment and no monthly mortgage insurance. You need a Certificate of Eligibility and the property must meet VA appraisal standards.
You can qualify 2 years after bankruptcy or foreclosure with FHA, 4 years with conventional. Some portfolio lenders approve sooner with strong compensating factors.
Only if you're keeping the loan 5+ years. Each point costs 1% of loan amount and typically reduces your rate 0.25%—run break-even math first.
Yes, most programs allow gifts from family members. You'll need a gift letter stating the money doesn't require repayment and proof of the donor's funds.
You pay only interest for 5-10 years, then payments jump when principal starts amortizing. Works for short-term ownership or buyers expecting income growth.
ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years based on market indexes. Rate caps limit how much payments can increase.
FHA 203k and conventional renovation loans fund purchase plus repairs in one mortgage. You need contractor bids upfront and properties must be habitable at closing.
A HELOC is a revolving credit line against your home equity. Use it for planned expenses like renovations—rates are variable and you pay interest only on amounts drawn.
No, El Monte isn't designated rural by USDA standards. Consider FHA or conventional loans instead for low down payment options.
Jumbo loans exceed $806,500 in Los Angeles County. Most El Monte properties fall under this limit, qualifying for conventional conforming loans with better terms.
Yes, once you reach 20% equity through payments or appreciation, you can refinance to eliminate PMI. Check if savings outweigh refinance costs first.
Bridge loans provide short-term financing to buy before selling your current home. Expect higher rates and 6-12 month terms—use only when necessary.
Lenders divide your liquid assets by 360 months to calculate monthly income. Works for retirees or wealthy buyers with substantial savings but limited traditional income.
Yes, 1099 loans calculate income from your gross 1099 earnings with minimal expense deductions. Easier qualification than traditional self-employed programs requiring tax returns.
Portfolio ARMs are adjustable mortgages held by individual lenders instead of sold to Fannie or Freddie. They offer flexible underwriting for complex income or credit situations.
Lock when you're comfortable with the rate and timeline. Rates vary by borrower profile and market conditions—we'll help you time it right.
Yes, foreign national loans require 20-35% down and don't need US credit history. Expect slightly higher rates and bring passport, visa, and foreign bank statements.
You can negotiate price down, pay the difference in cash, or cancel the deal. Some sellers split the gap—your contract terms dictate options.
Immediately if you qualify with new debt ratios. Selling typically improves qualification by eliminating old mortgage debt from your DTI calculation.
P&L loans use CPA-prepared financial statements to verify self-employed income. Less documentation than full tax returns but more than bank statement programs.
No, investment properties require minimum 15% down. DSCR loans need 20-25%, conventional investor loans typically want 20%, and some portfolio options go to 15%.
30-year terms offer lower payments and flexibility. Choose 15-year if you can afford higher payments and want to save interest—rates run 0.5% lower.
Most jumbo lenders want 700+ credit scores. Some portfolio programs accept 660 with larger down payments and substantial reserves.
Yes, lenders count 75% of market rent after 2 years ownership or from the lease if you're moving out. You need an appraisal with rent comparables.
Hard money provides fast financing for fix-and-flip projects or borrowers who can't qualify traditionally. Expect higher rates, short terms, and asset-based underwriting focusing on property value.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.