El Segundo Mortgage FAQs: Expert Answers from Local Los Angeles County Brokers

Pre-approval takes 24 hours with tax returns and pay stubs. Full approval to close typically runs 21-30 days for conventional and jumbo loans.

Conventional loans need 620 minimum. FHA accepts 580, but most El Segundo sellers prefer conventional or jumbo offers that close faster.

Most single-family homes exceed the $806,500 conforming limit. Condos near downtown may qualify for conventional rates and terms.

Conventional loans need 5% down. FHA requires 3.5%, but jumbo lenders typically want 10-20% depending on loan amount and credit profile.

Lenders approve homes near LAX without issues. Appraisers note noise but rarely reduce values given strong El Segundo job market demand.

W-2 income from Northrop, Boeing, or Aerospace Corp makes approval straightforward. Self-employed contractors need bank statement or 1099 loans.

Bring two years tax returns, two months pay stubs, two months bank statements, and photo ID. Self-employed borrowers add business bank statements.

15-year loans save interest but double your payment. Most El Segundo buyers choose 30-year terms and invest the payment difference elsewhere.

Budget 2-3% of purchase price for lender fees, title, and escrow. On a $1.2M home, expect $24,000-$36,000 before down payment.

No. Jumbo loans avoid PMI regardless of down payment size. This offsets the slightly higher jumbo rates for borrowers with strong credit.

Yes. DSCR loans approve based on rental income, not your W-2. We need 20-25% down and appraisal showing positive cash flow.

DSCR loans qualify you on rental income alone. Perfect for investors buying El Segundo properties who don't want tax returns reviewed.

Bank statement loans add 0.5-1% to your rate versus W-2 programs. You avoid two years of tax returns and qualify on deposits.

Yes. Foreign national loans require 30-40% down and close in 30 days. No US credit history or tax returns needed.

FHA allows lower credit and 3.5% down but charges lifetime PMI. Conventional needs 5% down, better credit, and drops PMI at 78% LTV.

One point costs 1% of loan amount and drops your rate 0.25%. Break-even typically hits after four years of ownership.

Yes. VA loans require no down payment and no PMI. Veterans get the same rates as conventional borrowers with better terms.

1099 loans approve with 12-24 months of contracts. We average your deposits and verify client relationships for income calculation.

Most jumbo lenders want 6-12 months reserves after closing. That's six months of mortgage payments sitting in bank or retirement accounts.

Yes. Lenders approve condos if the HOA is FHA-approved and has adequate reserves. We check HOA budgets before you write an offer.

ARMs fix your rate for 5-10 years then adjust annually. Start rates run 0.5-1% below fixed loans, saving money if you sell early.

Lenders approve up to 43% debt-to-income ratio. At $150K income with no debt, you qualify for roughly $1M purchase with 20% down.

Bankruptcies need two years seasoning, foreclosures need three. We have non-QM lenders who approve at 12-24 months for strong borrowers.

Portfolio ARMs come from private lenders with flexible terms. Rates start low and adjust based on indexes, best for short-term ownership.

Yes. Lenders order new appraisals for rate-term and cash-out refinances. Desktop appraisals sometimes work if you have strong equity position.

Rate locks need a purchase contract. We quote live rates daily and lock once you're in escrow, typically 30-45 day locks.

Cash-out refinance lets you pull equity while refinancing. Conventional allows up to 80% LTV, jumbo programs go to 75% on primary homes.

Lenders add HOA fees to your debt-to-income ratio. High HOA dues reduce your maximum loan amount by roughly 12x the monthly fee.

Yes. FHA loans work on 2-4 units with 3.5% down if you occupy one unit. Conventional needs 15% down for multi-family investment properties.

Bridge loans fund your new purchase before selling your current home. Terms run 6-12 months with interest-only payments at higher rates.

You deposit 1-3% of purchase price when your offer is accepted. Funds hold in escrow and apply toward your down payment at closing.

FHA and VA loans are assumable with lender approval. You take over their rate and terms, valuable when rates rise above existing loans.

We shop 200+ lenders to find your best rate and program. Banks show you one option; we compare jumbo, non-QM, and conventional programs.

Rates follow bond markets and change multiple times daily. We lock your rate when you're in escrow to protect against increases.

You renegotiate price, bring extra cash, or cancel using your appraisal contingency. Lenders only loan based on appraised value or price, whichever is lower.

Only if you have cash to cover a low appraisal. Most El Segundo deals keep this contingency given high prices and appraisal variance.