Lakewood Mortgage FAQs: Your Questions Answered by Local Brokers

Most purchase loans close in 21-30 days depending on loan type and appraisal turnaround. Cash-out refinances often take 30-45 days due to title work in Los Angeles County.

FHA loans start at 580 credit with 3.5% down. Conventional loans typically require 620 minimum, though some lenders go to 660 for competitive rates.

FHA requires 3.5% down, conventional starts at 3%, and VA offers zero down for eligible veterans. Jumbo loans above $806,500 typically need 10-20% depending on credit.

Most Lakewood homes fall under the $806,500 conforming limit for Los Angeles County. Properties above that threshold require jumbo financing with stricter requirements.

W-2 borrowers need two years tax returns, recent pay stubs, and bank statements. Self-employed buyers need two years business returns plus a current profit and loss statement.

Yes, bank statement loans work well for self-employed borrowers who write off significant expenses. We use 12-24 months of deposits instead of tax returns to qualify income.

FHA allows lower credit scores and 3.5% down but requires mortgage insurance for the loan life. Conventional loans drop PMI at 20% equity and offer better rates above 700 credit.

Active duty military, veterans, and eligible spouses qualify for VA loans with zero down and no PMI. You need a certificate of eligibility and 580+ credit for most lenders.

Expect 2-5% of loan amount for lender fees, title insurance, escrow, and county recording. On a $600,000 purchase, budget $12,000-$30,000 depending on loan type and discount points.

Sellers can contribute up to 3% for conventional loans and 6% for FHA and VA. In competitive markets, seller concessions are rare unless you're paying above list price.

Get pre-approved with full documentation review. Lakewood sellers won't take pre-qualification letters seriously since they don't verify income or assets.

ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They work if you plan to sell or refinance before the first adjustment hits.

Yes, immediate family can gift down payment funds for most loan types. You need a gift letter stating the money doesn't require repayment and proof of the transfer.

Private mortgage insurance costs 0.3-1.5% annually on loans above 80% LTV. Avoid it by putting 20% down, using a piggyback second, or choosing VA or USDA loans.

DSCR loans qualify based on rental income, not personal income or tax returns. The property must generate 1.0x to 1.25x the monthly payment depending on lender.

Yes, if you meet debt-to-income limits with both mortgages. Lenders require 10-20% down for second homes and proof you can afford both payments comfortably.

Most conventional loans max at 43-50% DTI including your new mortgage payment. FHA stretches to 56.99% with strong compensating factors like high credit scores.

Rate-and-term refinances often qualify for appraisal waivers if you have strong equity and payment history. Cash-out refis always require full appraisals in Los Angeles County.

Rate-and-term refinances work down to 3% equity for conventional loans. Cash-out refinances require keeping 20% equity after closing for most loan programs.

Rate locks guarantee your rate for 30-60 days while closing. Lock when rates drop or you're within 45 days of closing to avoid market swings.

FHA 203(k) loans finance purchase plus renovations in one mortgage. Conventional renovation loans exist but require more equity and stricter contractor requirements.

Bridge loans let you buy before selling your current home using its equity. They're expensive short-term solutions that work if you need to move fast in a competitive market.

Yes, foreign national loans work without U.S. credit or tax returns. Expect 20-40% down and higher rates since these are portfolio products with more lender risk.

ITIN loans serve borrowers without Social Security numbers using Individual Taxpayer ID Numbers. Requirements mirror conventional loans but come with slightly higher rates.

Yes, 1099 loans qualify income using your 1099 forms instead of full tax returns. This works well if you write off expenses that lower your taxable income significantly.

Asset depletion divides liquid assets by 360 months to create qualifying income. A retiree with $500,000 in investments qualifies for $1,389 monthly income without employment.

Yes, jumbo and portfolio lenders offer interest-only periods of 5-10 years. Monthly payments are lower initially but principal stays unchanged until the IO period ends.

Community mortgages allow co-borrowers who won't live in the home to help you qualify. Parents or relatives can add their income without being on title.

Hard money lenders focus on property value over borrower credit and fund in days not weeks. Expect 8-15% rates and 1-3 year terms for fix-and-flip projects.

Yes, once you hit 20% equity you can drop FHA mortgage insurance by refinancing to conventional. This makes sense if rates haven't risen significantly since your original loan.

HELOCs are revolving credit lines with variable rates you can draw from repeatedly. Home equity loans provide lump sums at fixed rates with set repayment terms.

Reverse mortgages let homeowners 62+ access equity without monthly payments. The loan comes due when you sell, move, or pass away, reducing inheritance for heirs.

Multiple mortgage inquiries within 45 days count as one hard pull. Shop aggressively during that window without damaging your score.

You can renegotiate price, pay the difference in cash, or cancel if you have an appraisal contingency. Some buyers split the gap with sellers to save the deal.

You can waive it to compete in hot markets but you'll still need an appraisal for the lender. If it comes in low, you cover the gap or lose your deposit.

Brokers access 200+ lenders versus one bank's products. We match your income type and property to the lender most likely to approve at the best terms.