Question 1

What credit score do I need to buy a home in Huntington Park?

Accepted Answer

FHA loans start at 580 for 3.5% down, 500 for 10% down. Conventional loans typically require 620 minimum for approval.

Question 2

How much do I need for a down payment?

Accepted Answer

FHA requires 3.5% down with 580+ credit. Conventional loans allow 3% down for first-time buyers, 5% for repeat buyers.

Question 3

Can I buy a house with an ITIN number instead of a Social Security number?

Accepted Answer

Yes, we have ITIN loan programs that don't require a Social Security number. You'll need 12-24 months of bank statements and 15-20% down.

Question 4

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 buyers need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers need business returns and profit/loss statements.

Question 5

How long does it take to close a loan in Huntington Park?

Accepted Answer

Standard purchases close in 21-30 days. Cash-out refinances take 30-45 days due to appraisal and title work.

Question 6

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows lower credit scores and smaller down payments. Conventional loans have cheaper monthly insurance and better rates for strong borrowers.

Question 7

Do I have to pay PMI on conventional loans?

Accepted Answer

Yes, if you put down less than 20%. PMI drops off automatically once you hit 22% equity through payments or appreciation.

Question 8

Can I use a bank statement loan if I'm self-employed?

Accepted Answer

Yes, bank statement loans use 12-24 months of deposits to calculate income. They're ideal when tax returns show low income due to write-offs.

Question 9

What are typical closing costs in Los Angeles County?

Accepted Answer

Expect 2-5% of the purchase price. This includes lender fees, title, escrow, appraisal, and prepaid property taxes.

Question 10

Can the seller pay my closing costs?

Accepted Answer

Yes, sellers can contribute up to 3% on conventional loans, 6% on FHA. This is common in slower markets when sellers need to move inventory.

Question 11

What's a DSCR loan and who uses it?

Accepted Answer

DSCR loans qualify based on rental income, not your W-2. Investors use them to buy properties without proving personal income.

Question 12

How much rental income do I need for a DSCR loan?

Accepted Answer

The rent must cover 75-100% of the mortgage payment. Lenders verify this using an appraisal with rent comparables.

Question 13

Can I buy an investment property in Huntington Park with an FHA loan?

Accepted Answer

No, FHA requires you to live in the property. You need a conventional or DSCR loan for pure investment purchases.

Question 14

What's an adjustable rate mortgage and when does it make sense?

Accepted Answer

ARMs have lower rates than fixed loans for the first 5-10 years. They work if you plan to sell or refinance before the rate adjusts.

Question 15

Do I qualify for a VA loan in Huntington Park?

Accepted Answer

If you're active military, a veteran, or an eligible spouse, yes. VA loans require no down payment and have the lowest rates available.

Question 16

What's the minimum down payment for an investment property?

Accepted Answer

Conventional investor loans require 15-25% down. DSCR loans typically need 20-25% depending on credit and rental income coverage.

Question 17

Can I use gift money for my down payment?

Accepted Answer

Yes, FHA and conventional loans allow gifts from family. You'll need a gift letter stating the funds don't require repayment.

Question 18

What are discount points and should I pay them?

Accepted Answer

Points are prepaid interest that lower your rate. They make sense if you're keeping the loan 5+ years and have cash to deploy.

Question 19

How does income verification work for 1099 contractors?

Accepted Answer

We use your 1099 forms plus bank deposits to verify income. Some lenders accept 12-24 months of statements instead of tax returns.

Question 20

Can I get a mortgage with recent bankruptcy or foreclosure?

Accepted Answer

FHA allows mortgages 2 years after bankruptcy, 3 years after foreclosure. Conventional loans require 4 years for foreclosure, 2-4 for bankruptcy.

Question 21

What's a portfolio ARM and who should use it?

Accepted Answer

Portfolio ARMs are held by the lender, not sold to Fannie/Freddie. They work for borrowers with complex income or credit situations.

Question 22

Do I need an appraisal for every mortgage?

Accepted Answer

Yes, except some refinances qualify for appraisal waivers. Lenders need independent value verification before lending on a property.

Question 23

What's the debt-to-income ratio requirement for conventional loans?

Accepted Answer

Most lenders cap DTI at 43-50%. Strong credit and reserves can push approvals above 50% with automated underwriting.

Question 24

Can I buy a fixer-upper with a mortgage in Huntington Park?

Accepted Answer

FHA 203k and conventional renovation loans cover purchase plus repairs. Hard money works for heavy rehabs when you're flipping or plan to refinance.

Question 25

What's a bridge loan and when do investors use it?

Accepted Answer

Bridge loans let you buy before selling your current home. They're short-term financing, typically 6-12 months with higher rates.

Question 26

How do rate locks work?

Accepted Answer

We lock your rate for 30-60 days while the loan processes. Longer locks cost more but protect you if rates rise during escrow.

Question 27

Can foreign nationals get mortgages in Huntington Park?

Accepted Answer

Yes, foreign national loans require 20-30% down and proof of income from your home country. Rates run 0.5-1% higher than conventional.

Question 28

What's an asset depletion loan?

Accepted Answer

Lenders divide your liquid assets by 360 months to create qualifying income. Retirees with investments but no W-2 use these programs.

Question 29

Do I need reserves to close a mortgage?

Accepted Answer

Investment properties require 6-12 months of reserves. Primary homes typically need 2-6 months depending on down payment and loan type.

Question 30

What are the property taxes like in Huntington Park?

Accepted Answer

LA County base rate is 1%, plus local assessments. Rates vary by borrower profile and market conditions for all loan programs.

Question 31

Can I refinance to pull cash out for investment properties?

Accepted Answer

Yes, cash-out refinances allow up to 75% LTV on investment properties. You'll need equity and sufficient rental income or reserves.

Question 32

What's the difference between a HELOC and a home equity loan?

Accepted Answer

HELOCs are revolving credit lines with variable rates. Home equity loans are lump sums with fixed rates and payments.

Question 33

How do interest-only loans work?

Accepted Answer

You pay only interest for 5-10 years, then principal and interest. They lower early payments but delay equity building.

Question 34

What makes a loan 'jumbo' in Los Angeles County?

Accepted Answer

Jumbo loans exceed conforming limits, currently $832,750 in LA County. They require stronger credit, larger down payments, and more reserves.

Question 35

Can I assume the seller's existing mortgage?

Accepted Answer

FHA and VA loans are assumable with lender approval. You'll need to qualify and pay the seller their equity in cash.

Question 36

What's a profit and loss statement loan?

Accepted Answer

These loans use current P&L statements instead of two-year tax returns. CPAs must prepare the statements and verify your business income.

Question 37

Do you work with first-time homebuyers in Huntington Park?

Accepted Answer

Yes, we close first-time buyer loans weekly. We'll match you with programs that fit your income type and down payment budget.

Question 38

How do construction loans work for new builds?

Accepted Answer

Construction loans fund the build in stages as work completes. They convert to permanent mortgages once you get a certificate of occupancy.

Question 39

What's a community mortgage program?

Accepted Answer

These are flexible conventional loans with down payment assistance or reduced credit requirements. Eligibility varies by income and location.

Question 40

Can I get a reverse mortgage in Huntington Park?

Accepted Answer

If you're 62+ with equity, yes. Reverse mortgages pay you while you live there, with repayment due when you sell or move out.

Huntington Park Mortgage FAQs – Your Questions Answered by LA County Brokers