Lancaster Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans start at 580, conventional at 620. Scores below 640 limit your options and increase your rate, but we have lenders who work with rebuilding credit.

FHA requires 3.5%, conventional as low as 3%, VA and USDA zero down. Your down payment affects your rate and whether you pay mortgage insurance.

FHA allows lower credit scores and smaller down payments but charges mortgage insurance for the loan's life. Conventional drops PMI at 78% loan-to-value and often costs less long-term.

Veterans, active military, and eligible spouses qualify with no down payment required. Lancaster has a strong veteran community, and VA loans work well here with zero PMI.

Most of Lancaster falls outside USDA eligible zones. Check specific addresses, but VA or FHA zero-down options usually work better for this area.

Expect 21-30 days from application to closing on purchase loans. Refinances run 30-45 days depending on appraisal turnaround and lender volume.

W-2 buyers need two years tax returns, recent pay stubs, two months bank statements, and photo ID. Self-employed borrowers need additional business documentation or can use bank statement programs.

Absolutely. We place self-employed buyers using bank statement loans, 1099 programs, or profit and loss statements when tax returns show limited income.

Lenders use 12-24 months of business or personal bank deposits instead of tax returns. These work when you write off income and show less on your returns.

Lancaster prices run significantly lower than coastal LA County markets. That affordability attracts first-time buyers, families, and investors looking for cash flow.

Compared to most LA County cities, yes. You get more square footage per dollar, which matters for families and buyers priced out of western markets.

Buying makes sense if you're staying three-plus years and have stable income. Low inventory and rent increases favor ownership when you can afford the down payment.

DSCR loans approve based on rental income, not your W-2. Lancaster's rental demand makes these properties attractive for investors who don't want employment verification.

Yes, with documentation. DSCR loans skip your personal income entirely and focus on the property's rental cash flow instead.

Expect 2-5% of the purchase price covering lender fees, title insurance, escrow, appraisal, and prepaid taxes. Rates vary by borrower profile and market conditions.

Not on purchases. You can ask sellers to cover costs or choose a higher rate in exchange for lender credits that offset fees.

PMI applies when you put down less than 20% on conventional loans. FHA charges upfront and monthly mortgage insurance regardless of down payment size.

Put 20% down on conventional loans or use VA loans with zero down. Some lenders offer piggyback seconds, but those rarely pencil better than PMI.

ARMs start with lower fixed rates for 3, 5, 7, or 10 years, then adjust annually based on an index. These work when you're selling or refinancing before adjustment.

Fixed rates lock your payment for 30 years. ARMs save money short-term but carry risk if you stay past the fixed period or rates climb.

Yes, but standard mortgages require the home to be livable. FHA 203k and conventional renovation loans let you roll repair costs into financing.

Jumbo loans exceed conforming limits, currently $806,500 in LA County. Most Lancaster properties stay below that threshold, so conventional loans work fine.

Lenders cap housing debt at 43-50% of gross monthly income depending on the program. Your actual comfort level depends on other debts and lifestyle costs.

Yes, lenders require appraisals to confirm the property's value supports the loan amount. Appraisals in Lancaster typically take 7-14 days to complete.

You renegotiate the price, bring more cash to close, or walk away using your appraisal contingency. Low appraisals happen less often in stable markets.

Yes. ITIN loans work for borrowers without Social Security numbers who have stable income and credit history established through alternative tradelines.

Most investment property loans require 640 minimum, with 680+ getting better rates. DSCR loans focus more on rental income than your personal credit.

Absolutely. Foreign national loans don't require US credit or income verification but need larger down payments, typically 25-40% depending on the lender.

Bridge loans let you buy before selling your current home. You carry two mortgages temporarily, then pay off the bridge loan when your old house closes.

Debt Service Coverage Ratio loans approve based on rental income alone. Investors with multiple properties or high write-offs use these to skip income verification.

Depends on timing and explanation. Recent lates hurt more than old ones, but we have lenders who work with 12-month clean payment history despite past issues.

That's a big part of our business. We walk first-timers through documentation, down payment options, and loan programs that fit starter budgets.

Get pre-approved. Pre-qualification is a guess, while pre-approval means a lender verified your income, assets, and credit before issuing a commitment letter.

You pay upfront points to permanently lower your rate. One point costs 1% of the loan amount and typically drops your rate by 0.25%, sometimes more.

Only VA and FHA loans are assumable, and you still need lender approval. Assumptions made sense when rates spiked, but they're administratively slow.

Portfolio ARMs are held by individual lenders rather than sold to Fannie or Freddie. They offer flexibility for complex income situations but adjust after the fixed period.

Yes. Construction loans release funds in draws as work progresses, then convert to permanent financing. These require detailed builder contracts and timelines.

HELOCs let you borrow against home equity with a revolving credit line. You pay interest only on what you use, making them flexible for ongoing expenses.

HELOCs are revolving lines of credit with variable rates. Home equity loans give you a lump sum with a fixed rate and payment over a set term.

Yes, when rates drop enough to offset closing costs. We run break-even analysis to show whether refinancing saves money over your expected holding period.