Lomita Mortgage FAQs: Expert Answers from Your Local Broker

FHA loans require 580 minimum, conventional loans typically need 620 or higher. Higher scores unlock better rates and lower down payment requirements.

FHA requires 3.5%, conventional can go as low as 3% for first-time buyers. Investment properties need 15-25% down depending on the loan program.

W-2 earners need two years tax returns, recent pay stubs, and bank statements. Self-employed borrowers need business returns and either profit/loss statements or 12-24 months of bank statements.

Pre-approval takes 24-48 hours with complete documents. Full underwriting and closing typically runs 21-30 days for purchase transactions.

Get pre-approved. Pre-qualification is a guess based on what you tell us; pre-approval means an underwriter reviewed your actual documents and credit.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity and often cost less long-term.

VA loans offer zero down for eligible veterans and active military. USDA loans don't work in Lomita because it's not a rural area.

Rates vary by borrower profile and market conditions. Your credit score, down payment, and loan type determine your actual rate.

Yes, if you put down less than 20%. PMI costs 0.3-1.5% annually and drops off once you reach 20% equity through payments or appreciation.

Lomita is small and mostly residential throughout. Focus on proximity to PCH for beach access or Narbonne for freeway convenience based on your commute.

Absolutely. Bank statement loans use 12-24 months of deposits to calculate income without requiring tax returns that show write-offs.

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

Not on purchase loans. You can ask sellers to cover costs as part of negotiations, but you can't finance them into the loan amount.

DSCR loans qualify you based on rental income the property generates, not your personal income. Investors with multiple properties use these to avoid income limit issues.

Bridge loans let you buy before selling your current home. They're expensive short-term tools best used when you need to close fast on a competitive property.

ARMs offer lower initial rates that adjust after a fixed period (typically 5, 7, or 10 years). They work if you plan to sell or refinance before adjustment.

Yes on most loan types. Donors must provide a gift letter stating the money doesn't require repayment, and we need to document the transfer.

Pre-qualification is an estimate. Clear to close means underwriting approved everything and you're ready to sign loan documents and fund.

Most refinances require appraisals. Some conventional loans offer appraisal waivers if you have strong equity and meet automated underwriting criteria.

Most jumbo lenders want 700 minimum. Best rates start at 740, and you'll need larger reserves and lower debt ratios than conventional loans.

Standard FHA won't cover major repairs. FHA 203k renovation loans work, but they add complexity and timeline that most Lomita sellers won't accept.

Portfolio ARMs are held by the lender instead of sold to Fannie or Freddie. They work for borrowers who don't fit standard guidelines but have strong financials.

One point equals 1% of the loan amount and typically reduces your rate by 0.25%. Points make sense if you're keeping the loan past the break-even period, usually 5-7 years.

Yes. Foreign national loans require 20-40% down and accept international credit profiles, with higher rates than domestic programs.

ITIN loans work for borrowers without Social Security numbers. They require tax identification numbers, work history, and typically 15-20% down payment.

Lenders average your monthly deposits over 12-24 months. They subtract a percentage for business expenses (typically 25-50%) to determine qualifying income.

Conventional loans allow up to 50% DTI with strong credit. FHA goes to 57% in some cases, but lower ratios get better rates.

Yes. 1099 loans use your gross 1099 income without the tax return deductions that typically lower qualifying income for self-employed borrowers.

Asset depletion loans qualify you based on investment accounts, dividing assets by 360 months to create qualifying income. Retirees and high-net-worth buyers with low reported income use these.

You pay only interest for a set period (typically 10 years), then principal and interest. They lower initial payments but cost more over the loan life.

Hard money is short-term financing based on property value, not your income. Fix-and-flip investors use these when speed matters more than rate.

No. VA loans require owner occupancy, though you can buy a multi-unit and rent out additional units while living in one.

HELOCs work like credit cards against your equity with variable rates. Home equity loans provide lump sums with fixed rates and payments.

15-year mortgages save interest and build equity faster but require higher monthly payments. Choose based on your cash flow, not just total interest paid.

You need to cover the gap in cash, renegotiate the price, or cancel the deal. Appraisal gaps happen in competitive markets when buyers overpay.

Community mortgages consider non-traditional income sources and may offer down payment assistance. They're designed for underserved borrowers who don't fit conventional boxes.

Yes, if you qualify for the full payment on your income alone. You'll need a new appraisal and enough equity to meet minimum requirements.

Construction loans fund new builds in phases as work completes. Lomita has limited buildable lots, so these are rare compared to purchase or renovation financing.

Reverse mortgages let homeowners 62+ convert equity to cash without monthly payments. The loan is repaid when you sell, move, or pass away.

Equity appreciation loans share future property appreciation with the lender in exchange for lower rates or reduced down payments. They limit your upside if the home value climbs significantly.