Los Angeles Mortgage FAQs: Your Guide to Home Financing in LA

You can qualify with 580 for FHA or 620 for conventional. Jumbo loans typically require 680 minimum, though some lenders go lower with compensating factors.

FHA allows 3.5% down, conventional goes as low as 3%. Jumbo loans usually require 10-20% depending on loan amount and property type.

Any loan above $806,500 is jumbo in LA County. Most single-family homes in desirable neighborhoods exceed this limit.

Yes. We offer bank statement loans, 1099 loans, and P&L statement programs that don't require tax returns.

Standard purchase loans close in 21-30 days. Cash-out refinances and complex scenarios can take 30-45 days depending on documentation.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life on most loans. Conventional drops PMI once you hit 20% equity.

Lenders collect property tax reserves at closing, typically 2-6 months. California property tax is roughly 1.25% of purchase price annually in most LA areas.

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

Yes. DSCR loans qualify you based on rental income, not personal income, which works well for LA investors with multiple properties.

Standard loans need two years of tax returns, two months of bank statements, and recent pay stubs. Alternative programs like bank statement loans skip tax returns.

Not always. Jumbo rates are often competitive with conforming rates, sometimes lower depending on your profile and down payment.

Only if the building is FHA-approved. Many LA condos aren't approved, so conventional or portfolio loans become necessary.

PMI is private mortgage insurance required on conventional loans under 20% down. You avoid it by putting 20% down or using a piggyback second mortgage.

Lenders use 12 or 24 months of business bank statements instead of tax returns. They average your deposits to calculate qualifying income.

Yes. Foreign national loans don't require U.S. credit or Social Security numbers, though they need larger down payments, typically 30-40%.

ARMs start with lower rates than fixed loans. They make sense if you plan to sell or refinance within 5-7 years.

Jumbo loans typically require 6-12 months of reserves. Conventional and FHA loans may not require reserves for primary residences.

Yes on most loan types. The donor needs to provide a gift letter confirming the funds don't require repayment.

Bridge loans let you buy before selling your current home. They're common in competitive LA markets where sellers prefer non-contingent offers.

A HELOC is a revolving credit line secured by your home equity. You draw funds as needed and only pay interest on what you borrow.

Pre-qualification is an estimate based on what you tell us. Pre-approval involves credit checks and document verification, making it much stronger for offers.

Yes, up to four units if you occupy one. FHA only requires 3.5% down even on multi-family investment properties.

ITIN loans serve borrowers without Social Security numbers who have Individual Taxpayer Identification Numbers. Down payments typically start at 15-20%.

Only if you'll keep the loan long enough to recoup the cost. Each point costs 1% of the loan amount and typically reduces your rate by 0.25%.

Most programs max out at 43-50% DTI. Some portfolio loans go higher with strong compensating factors like high credit scores or reserves.

Limited options exist. FHA and VA offer streamline refinances that skip appraisals, but most conventional refis need adequate equity.

Portfolio ARMs are held by the lender rather than sold to Fannie or Freddie. They offer more flexible underwriting for unique situations.

Most refinances require appraisals. Streamline programs like FHA and VA skip them, and some conventional refis qualify for appraisal waivers.

VA loans have no upper limit in LA County. Your qualifying amount depends on income, debts, and residual income requirements.

First-time VA buyers pay 2.15% with zero down. Subsequent use is 3.3%. The fee drops to 1.25% with 10% down or more.

Yes. 1099 loans use your gross 1099 income without deducting business expenses, which helps contractors qualify for higher amounts.

You can renegotiate the price, bring more cash to close, or cancel if you have an appraisal contingency. Some buyers split the difference with sellers.

They use 75% of market rent to account for vacancies. DSCR loans require the property's rent to cover 1.0-1.25 times the mortgage payment.

Asset depletion loans qualify you based on liquid assets like stocks and savings. Lenders divide your assets by 360 months to calculate income.

Yes. Construction loans fund both the purchase and rebuild. You need detailed plans, builder contracts, and typically 20-25% down.

Silver Lake, Los Feliz, Venice, and West Hollywood see intense competition. Pre-approval and fast closings give you an edge in these markets.

You pay only interest for a set period, typically 10 years. After that, payments adjust to include principal, which increases your monthly cost.

Reverse mortgages let homeowners 62+ convert equity into cash without monthly payments. The loan gets repaid when you sell or pass away.

Only if they have an assumable loan like FHA or VA. You still qualify through the lender and usually pay the seller their equity in cash.

Brokers shop 200+ lenders to find the best rate and program for your situation. Banks only offer their own products.