Lynwood Mortgage FAQs – Expert Answers from Local Brokers

FHA loans require 3.5% down, conventional loans need 3-5% for primary homes. Rates vary by borrower profile and market conditions.

Most lenders want 620 minimum for conventional, 580 for FHA. We have programs down to 500 for buyers with larger down payments.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 and profit-loss statement programs.

Pre-approval takes 1-2 days with complete documents. Full approval to closing typically runs 21-30 days depending on loan type.

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

ITIN loans work for borrowers without SSNs. You'll need larger down payments, usually 15-20%, and rates run slightly higher.

Yes, on most loan types. The donor writes a gift letter confirming the funds don't require repayment. We need a paper trail showing the transfer.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers provide additional business documentation depending on loan type.

Higher home prices here mean many buyers need jumbo loans above conforming limits. We also see strong demand for investor and multi-family financing.

Get pre-approved. Pre-qualification is a guess based on what you tell a lender. Pre-approval means underwriting reviewed your actual documents.

Expect 2-5% of the purchase price. This covers lender fees, title insurance, escrow, appraisal, and recording fees in Los Angeles County.

Some lenders offer lender-paid PMI where you accept a slightly higher rate instead. Piggyback loans are another option but carry more risk.

DSCR loans approve based on rental income, not personal income. Investors buying Lynwood rental properties use these when they don't want to show tax returns.

Most programs want total debt payments under 43-50% of gross monthly income. Self-employed and investor loans have more flexible debt-to-income ratios.

Yes, up to four units if you live in one. FHA lets you use projected rental income to help qualify. Down payment stays at 3.5%.

Brokers shop your loan across hundreds of lenders instead of one bank's products. We find better rates and match programs to your specific situation.

Condos typically have slightly higher rates and stricter condo association requirements. Lenders review HOA financials and insurance coverage before approval.

ARMs start with lower rates that adjust after a fixed period. They work well if you plan to sell or refinance within 5-7 years.

Yes. Lenders count your actual monthly payment or 1% of the balance, whichever applies. Income-driven repayment plans can help your debt ratio.

These programs use 12-24 months of business or personal bank deposits to calculate income. Self-employed borrowers who write off significant expenses use them.

FHA allows financing two years after Chapter 7 discharge, four years for conventional. Some non-QM lenders go as low as one day after discharge.

Rate is your interest cost. APR includes fees and points, showing true borrowing cost. Compare APRs when shopping lenders.

Some programs offer float-down locks for new construction, but most locks require a purchase contract. Locks typically last 30-60 days.

Investment property loans require larger down payments (15-25%) and higher rates. Lenders price for increased default risk on non-owner occupied properties.

Conventional loans on primary homes rarely require reserves. Investment properties and multi-units typically need 2-6 months of mortgage payments in the bank.

These are adjustable mortgages held by the lender instead of sold to Fannie or Freddie. They offer more flexibility for non-traditional borrowers.

If you're keeping your current house as a rental, lenders use 75% of market rent to offset that mortgage payment. You need an appraisal and lease in some cases.

Bridge loans let you buy before selling your current home. They're short-term, higher-rate financing that gets paid off when your old house closes.

Lenders add HOA dues to your debt ratio. High association fees in some Lynwood condos can reduce how much house you qualify for.

This program divides your liquid assets by 360 months to create qualifying income. Retirees and buyers with investments but low reported income use it.

FHA 203k and conventional renovation loans bundle purchase and rehab costs. Properties must meet minimum safety standards before funding in most programs.

You need to cover the gap with cash, renegotiate the price, or cancel the deal. Low appraisals happen when you overpay in competitive markets.

Yes. Veterans get zero down payment and no PMI on purchases up to the VA loan limit. They're the strongest program for qualified military buyers.

These programs serve non-US citizens buying property here. They require 20-40% down and use international credit and income documentation.

Points make sense if you'll keep the loan long enough to recover the upfront cost through lower payments. Most buyers break even in 3-5 years.

Home equity lines let you borrow against your equity as needed. Buyers use them for renovations, debt consolidation, or bridging to a new purchase.

FHA and VA loans are assumable with lender approval. You inherit their rate, which helps in rising rate environments if their loan is old enough.

These programs offer down payment assistance and flexible qualification for first-time buyers in specific areas. Income limits and property restrictions apply.

Fixed rates protect against increases but start higher. ARMs save money short-term if you'll move or refinance before adjustment. Rates vary by borrower profile.

Fix-and-flip investors use these short-term, asset-based loans. They fund quickly but carry high rates and points since approval depends on property value, not credit.