Hawthorne Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans start at 580, conventional at 620. Most Hawthorne deals close with scores between 640-720, which gets you competitive rates.

FHA requires 3.5% down, conventional 3-5% for owner-occupants. On a $650K Hawthorne home, that's $22,750 to $32,500 plus closing costs.

Two years of tax returns, two months of bank statements, 30 days of pay stubs. Self-employed buyers need two years of business returns and P&L statements.

Most conventional loans close in 21-30 days. FHA takes 30-40 days due to appraisal requirements and government backing.

FHA wins with under 10% down or credit below 680. Conventional costs less monthly if you have 10%+ down and strong credit.

Expect 2-5% of purchase price. On a $700K Hawthorne home, that's $14,000 to $35,000 depending on loan type and lender fees.

VA loans require zero down for eligible veterans. USDA doesn't work in Hawthorne since it's not a rural area.

Private mortgage insurance costs 0.3-1.5% annually on conventional loans under 20% down. FHA charges upfront and annual MIP regardless of equity.

Yes, using bank statement loans or P&L loans if your tax returns show limited income. We use deposits instead of W-2s for approval.

Approval based on 12-24 months of business bank deposits instead of tax returns. Self-employed borrowers with write-offs use these frequently.

Yes, if you're a contractor with 1099 income. Lenders verify deposits from your 1099 clients rather than requiring full tax returns.

Pre-qualification is an estimate. Pre-approval means underwriting reviewed your documents and verified income, assets, and credit.

Only if you're keeping the loan five years or longer. Most Hawthorne buyers refinance or sell within seven years.

Yes, using conventional investor loans or DSCR loans. DSCR loans approve based on rental income, not your W-2 or tax returns.

Debt service coverage ratio loans for investors. Approval depends on whether the rent covers the mortgage, not your personal income.

No, but 740+ gets the best rates. Scores between 620-739 add pricing adjustments that increase your rate or upfront costs.

Yes, from immediate family on conventional and FHA loans. You'll need a gift letter stating the money doesn't require repayment.

FHA if you have under 10% down. Conventional if you have 15%+ and good credit, since PMI drops off at 20% equity.

Appraisers account for aircraft noise in valuations. Homes directly under flight paths sometimes appraise lower than comparable properties farther east.

Yes, using foreign national loans or ITIN loans. Foreign national requires 20-30% down and doesn't check US credit.

Mortgages for borrowers with Individual Taxpayer Identification Numbers instead of Social Security numbers. Down payments typically start at 15%.

30-year gives lower payments and flexibility. 15-year saves interest but doubles your monthly payment—most Hawthorne buyers choose 30-year.

ARMs have fixed rates for 3, 5, 7, or 10 years, then adjust annually. They start 0.5-1% lower than 30-year fixed rates.

If you're selling or refinancing within seven years. Don't use them for your forever home unless you can handle payment increases.

Not on purchases—you pay those separately. On refinances, you can add costs to your loan balance if you have enough equity.

Most conventional loans cap at 45-50% DTI. FHA allows up to 57% with strong credit and reserves.

Not for owner-occupied FHA or conventional primary homes. Investment properties require 2-6 months of reserves depending on loan type.

Loans above $806,500 in Los Angeles County. They require stronger credit, larger down payments, and lower debt ratios than conforming loans.

Yes, using FHA 203k or conventional renovation loans. Standard mortgages won't fund if the home fails safety inspections.

Short-term financing to buy before selling your current home. Rates run 7-10%, so you need equity and strong income to qualify.

Multiple mortgage inquiries within 45 days count as one pull. Shop lenders aggressively—it won't hurt your score if done within that window.

Lock when you're satisfied with the rate. Floating risks increases but could save money—most buyers lock at application.

FHA allows it two years after discharge with re-established credit. Conventional requires four years for Chapter 7, two for Chapter 13.

Lenders count 1% of the balance as monthly payment if your loans are in deferment. Active IBR payments use the actual payment amount.

Yes, they're included in your debt ratio. Condo complexes with high HOAs reduce your buying power by affecting DTI calculations.

We shop 200+ lenders to find your best rate and program. Banks only offer their own products—we compare the entire wholesale market.

Nothing directly—lenders pay us. Your rate includes compensation whether you use a broker or go direct to a bank.

Yes, and you should. Sellers in competitive LA County markets prioritize pre-approved buyers with verified financials.

Contract clause letting you renegotiate or walk if the home appraises below purchase price. Many Hawthorne buyers waive this to win bidding wars.

Only if you can cover a gap with cash. If it appraises $20K low, you'll need that difference plus your down payment.