Hidden Hills Mortgage FAQ: Your Questions Answered by Local Brokers

Most need jumbo loans because prices exceed conventional limits. We also see heavy demand for bank statement and 1099 programs since many buyers are business owners or self-employed professionals.

Conventional loans require 5% down, but most jumbo lenders want 10-20% depending on loan amount. Putting down 20% eliminates PMI and typically gets you better rates.

Conventional loans require 620 minimum. Jumbo programs typically need 680-700+, and the best rates go to borrowers above 740.

Standard purchases close in 30-45 days. Complex income documentation or multiple properties can add 1-2 weeks to underwriting timelines.

Yes. We use bank statement loans, 1099 programs, or profit and loss statement loans for self-employed buyers. You don't need two years of tax returns with these programs.

You need two years of W-2s or tax returns, 60 days of bank statements, recent pay stubs, and a copy of your photo ID. Self-employed borrowers have alternative documentation options.

Expect 2-5% of the loan amount. This includes appraisal, title insurance, escrow fees, lender charges, and prepaid property taxes and insurance.

Fixed rates lock your payment for 30 years. ARMs start lower but adjust after 5, 7, or 10 years—good if you'll sell or refinance before adjustment.

FHA allows lower credit scores and 3.5% down but requires mortgage insurance for life. Conventional needs higher credit but drops PMI at 78% loan-to-value.

Not if you put down 20%. Below 20%, some jumbo lenders require PMI while others increase your rate instead of charging separate insurance.

Yes. We place bank statement jumbo loans regularly for self-employed borrowers. You need 12-24 months of business or personal bank statements showing consistent deposits.

DSCR loans approve based on rental income, not your personal income. Real estate investors use these to buy properties without showing tax returns or W-2s.

Your total monthly debts including the new mortgage payment shouldn't exceed 43-50% of gross income. Jumbo loans may require lower ratios depending on the lender.

Yes. Investment properties require 15-25% down and slightly higher rates. DSCR loans work well if rental income covers the mortgage payment.

We shop 200+ lenders to find better rates and programs than one bank offers. You get wholesale pricing and access to specialized loan types most banks don't have.

Points make sense if you'll keep the loan past the break-even period—usually 4-6 years. If you might refinance or sell sooner, skip them.

You pay only interest for 5-10 years, then principal and interest after. Lower initial payments help with cash flow, popular with high-income borrowers expecting income growth.

Yes. Foreign national programs require 30-40% down and don't need US credit history or Social Security numbers. Rates run higher than domestic loans.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit—sellers take these seriously.

Your rate stays fixed for 5, 7, or 10 years, then adjusts annually based on market indexes. Initial rates run 0.5-1% lower than 30-year fixed rates.

Yes, through lender-paid mortgage insurance where you take a slightly higher rate instead of monthly PMI. The rate increase is usually tax-deductible unlike PMI.

Lenders divide your liquid assets by 360 months to calculate qualifying income. Retirees or people with large investment accounts use this instead of employment income.

Jumbo loans typically require 6-12 months of payment reserves after closing. Higher loan amounts or investment properties may need more reserves depending on the lender.

Private lenders hold these loans instead of selling them. They're flexible on income documentation and property types but usually carry higher rates than conventional ARMs.

Yes. ITIN loans work for borrowers without Social Security numbers. You need strong credit history, solid income documentation, and typically 15-20% down.

Bridge loans let you buy before selling your current home. You make interest-only payments on the bridge loan until your old house sells and you refinance.

Construction loans fund new builds or major renovations. Money releases in stages as work completes, then converts to a permanent mortgage when construction finishes.

Lock when you're in contract and have a closing date. Rates vary by borrower profile and market conditions, so timing depends on your risk tolerance and market direction.

Yes. HELOCs let you borrow against equity as needed up to your credit limit. Most lenders offer lines up to 80-90% combined loan-to-value.

Home equity loans give you a lump sum with fixed payments. HELOCs work like credit cards—draw what you need and pay variable interest on the balance.

Yes, though most properties exceed VA loan limits requiring a jumbo VA loan or down payment. VA loans offer 0% down and no PMI for eligible veterans.

No. USDA loans only work in designated rural areas. Hidden Hills doesn't qualify for USDA financing despite being semi-rural in character.

Self-employed borrowers use current P&L statements instead of tax returns. Your CPA prepares the P&L showing business income, and lenders verify it matches bank deposits.

Hard money loans approve based on property value, not your income or credit. They fund fast but carry much higher rates—usually for fix-and-flip investors or complex situations.

Yes, if you're 62+ and own your home outright or have substantial equity. Reverse mortgages let you access equity without monthly payments until you move or sell.

These loans offer flexible underwriting for specific communities or professions. Some waive certain requirements or offer better terms for teachers, medical professionals, or other groups.

FHA loans require two years from discharge. Conventional loans need four years from discharge, though some portfolio lenders work with shorter waiting periods for strong borrowers.

Lenders count payments on all mortgaged properties against your debt-to-income ratio. You'll need larger reserves and possibly higher down payments for additional properties beyond four financed homes.

Local brokers like us access both. We shop wholesale pricing from 200+ lenders including national banks, regional lenders, and private portfolio lenders for the best fit.

Compare annual percentage rate across multiple lenders, not just interest rate. APR includes fees and gives true borrowing cost. Rates vary by borrower profile and market conditions.