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Long Beach Mortgage FAQ
Long Beach homebuyers face unique challenges—from competitive coastal markets to self-employed income structures common in Southern California. We've answered the questions we hear most from borrowers shopping for homes here.
Our team has access to 200+ wholesale lenders, which means we can match your specific situation to the right loan program. Whether you're buying your first condo near the beach or upgrading to a house in Bixby Knolls, these FAQs cut through the confusion.
We've organized answers by category: general mortgage process, Long Beach-specific guidance, loan comparisons, qualification requirements, and costs. If your question isn't here, reach out—we're local and we answer fast.
Most purchase loans close in 21-30 days. Self-employed borrowers using bank statement loans may need 35-40 days due to extra documentation review.
FHA loans allow 580 minimum. Conventional loans typically need 620, though some programs go lower with compensating factors like large down payments.
Yes. Conventional 97 loans and FHA loans both allow 3-3.5% down for qualified buyers. You'll pay PMI until you reach 20% equity.
FHA accepts lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional drops PMI at 20% equity and offers better rates for strong credit.
No. We offer ITIN loans for non-citizens and Foreign National loans for international buyers without U.S. credit history.
W-2 borrowers need two years tax returns, recent pay stubs, and bank statements. Self-employed buyers need business tax returns, P&Ls, and often 12-24 months of bank statements.
Yes. We analyze 12-24 months of deposits to qualify you without tax returns. This works well for business owners who write off significant expenses.
Expect 2-5% of the purchase price. This includes lender fees, title insurance, escrow, and county recording fees specific to Los Angeles County.
Only if you're keeping the loan past the break-even point—usually 4-6 years. Most Long Beach buyers refinance or move before then.
Jumbo loans exceed conforming limits—currently $806,500 in Los Angeles County. They require stronger credit and larger down payments but offer competitive rates through our lenders.
Yes. FHA allows 2-4 unit properties if you live in one unit. You can use projected rental income to qualify for the mortgage.
DSCR loans qualify based on rental income, not your personal income. Investors buying Long Beach rental properties use these to avoid tax return reviews.
Conventional investment loans require 15-25% down. DSCR loans start at 20% and go higher depending on credit and property cash flow.
Yes, on most loan types. The donor must provide a gift letter stating no repayment is expected, plus paper trail of the transfer.
We see strong activity in North Long Beach and areas near Cal State Long Beach where prices allow lower down payments. Coastal areas require jumbo financing.
If you're active military, veteran, or eligible spouse, yes. VA loans require no down payment and no PMI—hard to beat for qualified buyers.
ARMs start with lower rates that adjust after 5, 7, or 10 years. They work for buyers who plan to sell or refinance before adjustment.
Possibly. Most programs require 2-4 years after bankruptcy or foreclosure, depending on loan type and circumstances.
Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit—sellers take you seriously.
Lenders want housing costs under 43-50% of gross income. Exact numbers depend on debts, credit score, and loan type.
Yes, if the complex is FHA-approved. Many Long Beach condos qualify, but check approval status before writing an offer.
PMI is insurance lenders require when you put down less than 20%. Avoid it with 20% down, VA loans, or piggyback second mortgages.
15-year loans save massive interest but double your payment. Most Long Beach buyers choose 30-year terms for lower monthly costs and flexibility.
Yes. We offer 1099 loans that qualify you using your gross 1099 income without requiring full tax returns.
Bridge loans let you buy before selling your current home. They're short-term and expensive but solve timing problems in competitive markets.
Most loans cap DTI at 43-50%. We calculate all monthly debts divided by gross income—lower is better and opens more loan options.
Yes. Construction loans fund in stages as work completes, then convert to permanent mortgages. They require detailed plans and contractor vetting.
You pay only interest for 5-10 years, then principal kicks in. Monthly payments jump significantly after the IO period ends.
Not required by lenders, but smart for you. Appraisals check value, not condition—inspections find problems that kill deals later.
Most programs require 6-12 months of payment history. Some streamline refis allow faster timelines if rates drop significantly.
Rate locks freeze your rate for 30-60 days while closing. Lock when you're happy with the rate—rates can move either direction during escrow.
Los Angeles County taxes are roughly 1.1-1.25% of purchase price annually. Your lender collects monthly and pays from escrow unless you waive impounds.
Most loans require livable condition. FHA 203k loans fund purchase plus repairs in one loan, but they're complicated and slow.
These qualify you based on liquid assets divided by loan term. They work for retirees or buyers with wealth but low reported income.
Some coastal areas require it. Your lender orders a flood certification during underwriting—if you're in a zone, insurance is mandatory.
Yes, if you have equity. HELOCs work as revolving credit lines, useful for renovations or accessing cash without refinancing your first mortgage.
You can renegotiate price, increase down payment to cover the gap, or walk if your contract includes an appraisal contingency. Rates vary by borrower profile and market conditions.
We shop 200+ lenders to find better rates and programs than any single bank offers. You get options, not whatever one lender sells.
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.