Loading
Lawndale Mortgage FAQ
Buying in Lawndale means understanding South Bay pricing and what loans actually work here. Most homes need conventional or FHA financing, but self-employed buyers have real options too.
We broker loans across 200+ lenders, so we know which programs fit Lawndale properties and borrower profiles. These FAQs cover what we hear from buyers every week.
Whether you're buying your first condo near Marine or refinancing a single-family home, the right loan structure matters. Start here.
FHA loans allow 580 credit scores with 3.5% down. Conventional loans typically need 620 or higher for competitive rates.
FHA requires 3.5% down, conventional allows 3-5% for primary residences. VA loans offer zero down for eligible veterans.
Most purchase loans close in 21-30 days with complete documentation. Delays happen when appraisals lag or income docs need clarification.
Brokers shop 200+ lenders to find better rates and programs banks don't offer. Banks only quote their own products, which limits your options.
Two years of tax returns, two recent pay stubs, two months of bank statements, and photo ID. Self-employed borrowers need business returns too.
Market data fluctuates monthly, so we check active comps before advising buyers. Rates vary by borrower profile and market conditions.
FHA allows lower credit scores but charges upfront and monthly mortgage insurance. Conventional drops PMI at 20% equity and has stricter credit requirements.
Yes, we offer 1099 loans using bank statements or 12-24 months of deposits. Traditional W-2 documentation isn't required.
Expect 2-3% of the purchase price for lender fees, title, escrow, and prepaid taxes. These vary by loan type and property value.
Only if you plan to stay beyond the break-even point, usually 3-5 years. Shorter timelines make paying points a loss.
Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. Conventional loans drop PMI automatically at 78% LTV.
Yes, lenders require condo HOA questionnaires and reserve studies. FHA has strict HOA approval requirements that not all buildings meet.
Yes, FHA and conventional allow gifted funds from family members. You'll need a signed gift letter stating no repayment is expected.
Debt Service Coverage Ratio loans qualify you based on rental income, not personal income. Investors use these for income properties in Lawndale.
Lenders average two years of income from tax returns. Bank statement loans work better if you write off most earnings.
ARMs offer lower initial rates than fixed loans. They make sense if you plan to sell or refinance within 5-7 years.
Yes, FHA allows 2-4 unit properties if you live in one unit. You need 3.5% down and the duplex must meet FHA property standards.
Lenders want total monthly debts under 43-50% of gross income. Use your target payment plus existing debts to calculate what you qualify for.
Most Lawndale properties don't require flood insurance. Earthquake coverage is optional but recommended given California seismic risks.
You pay only interest for 5-10 years, then principal payments kick in. These suit investors or buyers expecting income increases.
Portfolio ARMs are held by lenders rather than sold to Fannie or Freddie. They offer flexibility for borrowers who don't fit agency guidelines.
Yes, foreign national loans don't require U.S. credit or Social Security numbers. Expect higher rates and 30-40% down payments.
Hard money approves in days based on property value, not your income. Rates run 8-12% and terms last 6-24 months.
Yes, ITIN loans allow non-citizens to qualify without Social Security numbers. You still need income documentation and a down payment.
Lock if you're closing within 30 days and comfortable with current rates. Float if you expect rates to drop before closing.
Bridge loans let you buy a new home before selling your current one. Terms last 6-12 months with higher rates than conventional loans.
Jumbo rates often match or beat conforming rates for borrowers with 20%+ down and strong credit. Pricing depends on your profile.
Recent bankruptcy, foreclosure, or unpaid collections block most loans. Chapter 7 requires 2-4 years of waiting depending on loan type.
Active duty military, veterans, and some spouses qualify for VA loans with zero down. You need a Certificate of Eligibility from the VA.
Buydowns temporarily lower your rate for 1-3 years using upfront funds. Sellers sometimes offer these as purchase incentives.
Yes, a rate-and-term refinance replaces the old loan with one in your name only. You must qualify based on your income and credit alone.
You can renegotiate the price, bring extra cash to closing, or cancel the contract. Low appraisals happen when sales outpace market data.
Yes, bank statement loans typically add 0.5-1.5% to your rate. That's the cost of flexible income documentation for self-employed borrowers.
HELOCs offer revolving credit you draw as needed with variable rates. Home equity loans provide lump sums with fixed rates and payments.
Yes, lenders count 1% of your balance as monthly payment or use your actual payment. Income-driven plans help lower your debt ratio.
Construction loans fund the build in stages as work completes. They convert to permanent mortgages once the home is finished and appraised.
Asset depletion loans qualify you using investment account balances divided by 360 months. Retirees with assets but low income use these.
Not necessarily, but condo projects must meet lender approval standards. Warrantable condos qualify for standard down payment requirements.
Pre-qualification estimates what you can afford based on stated income. Pre-approval verifies your income, assets, and credit with documentation.
Some lenders offer early rate locks for 60-90 days. These cost extra and make sense in rising rate environments.
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.