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Industry Mortgage FAQ
Industry sits in the San Gabriel Valley with a unique commercial landscape. Most buyers here are investors or business owners looking near major distribution hubs.
We've closed hundreds of deals across Los Angeles County. These FAQs answer the questions we hear most from Industry-area buyers.
From conventional loans to specialized programs for self-employed borrowers, we cover what actually matters for approval. Rates vary by borrower profile and market conditions.
Most purchase loans close in 30-45 days. Cash-out refinances take 35-50 days due to appraisal scheduling in Los Angeles County.
Conventional loans require 620 minimum. FHA accepts 580, but you'll get better rates at 640 or higher.
Conventional loans start at 3% down for primary residences. Investment properties require 15-25% depending on the loan program.
FHA allows lower credit and 3.5% down but charges lifetime mortgage insurance. Conventional drops PMI once you hit 20% equity.
Yes. We use bank statement loans, 1099 loans, and profit-and-loss programs for business owners who can't show traditional W-2 income.
Absolutely. We offer DSCR loans that qualify based on rental income, not your personal tax returns.
Bring two years of tax returns, two months of bank statements, recent pay stubs, and your ID. Self-employed borrowers need additional business documentation.
Industry's commercial nature means many buyers need investor or business-owner loan programs. We structure deals differently than traditional residential markets.
Expect 2-5% of the purchase price. This includes lender fees, title insurance, escrow, and county recording charges.
Get pre-approved. It requires full documentation and credit review, so sellers take your offer seriously.
DSCR loans qualify you based on rental income, not personal income. They work well for investors with multiple properties or complex tax returns.
Yes. We calculate income from 12 or 24 months of bank deposits, ideal for business owners who write off most income.
Most programs require 15-20% down. Some portfolio lenders go to 25% for higher leverage or multiple properties.
ARMs have fixed rates for 5, 7, or 10 years, then adjust annually. They make sense if you'll sell or refinance before adjustment.
Yes on conventional loans. PMI costs 0.3-1.5% annually until you reach 20% equity through payments or appreciation.
Jumbo loans exceed conforming limits—$806,500 in Los Angeles County for 2024. They require stronger credit and larger reserves.
Yes. ITIN loans work for borrowers with Individual Taxpayer Identification Numbers who file taxes but lack SSNs.
Pre-approval reviews your credit and income upfront. Conditional approval means underwriting verified everything and you're clear to close after final conditions.
Bridge loans let you tap your current home's equity to buy a new property. You pay off the bridge when your old house sells.
Most jumbo lenders want 700 minimum. Best rates start at 740 with strong reserves and low debt-to-income ratios.
On refinances, yes. On purchases, you can ask the seller to cover costs or accept a higher rate for lender credits.
You pay only interest for 5-10 years, then the loan converts to principal-and-interest. They work for high earners with irregular income.
We see quarter-point differences daily across our 200+ lenders. Shopping multiple sources saves thousands over the loan term.
Conventional loans max at 50% DTI. FHA goes to 56.99% with strong compensating factors like high credit scores.
Usually yes. Some lenders waive appraisals on rate-term refinances with strong equity and loan-to-value under 70%.
DSCR loans require no tax returns and qualify on rental income. They simplify qualifying if your W-2 income is maxed out.
LA County charges $1.10 per $1,000 of sales price. Cities add their own transfer taxes on top of the county rate.
Yes, but lenders treat second homes differently than investment properties. You need higher credit and more reserves for a second home classification.
Portfolio ARMs are held by lenders rather than sold to Fannie or Freddie. They offer flexible underwriting for complex income situations.
Hard money focuses on property value, not your income or credit. They close in days but charge 9-12% rates for short-term financing.
Reserves are savings equal to your mortgage payment. Investment properties require 6-12 months; primary homes need 2-6 months depending on loan type.
Yes. Foreign national loans don't require US credit or income documentation, but expect 30-40% down and higher rates.
Lenders divide your liquid assets by 360 months to calculate qualifying income. Works for retirees or buyers with large investment accounts.
Brokers access wholesale rates from 200+ lenders versus one bank's products. We match your situation to the best program and price available.
You can challenge it with comps, negotiate price down, or bring extra cash to close. Low appraisals kill 5% of deals we see.
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.