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Manhattan Beach Mortgage FAQ
Manhattan Beach homes run $2-4 million on average. That means most buyers here need jumbo financing, not conventional loans.
We've handled hundreds of Manhattan Beach purchases. These FAQs cover what actually matters when you're financing a home in one of LA's priciest beach cities.
From loan programs to local market dynamics, these answers reflect real deals we've closed. No generic mortgage advice — just what works here.
Jumbo loans typically require 10-20% down depending on credit and reserves. A $2.5 million home means $250-500k down payment minimum.
Yes, if you're buying above $766,550. Nearly every Manhattan Beach property exceeds conforming loan limits and requires jumbo financing.
Jumbo lenders want 700+ for best rates. You can qualify at 660-680, but expect higher rates and stricter reserve requirements.
For a $2 million home, plan on $400-500k annual income minimum. Lenders cap your debt-to-income ratio at 43% on jumbo loans.
Reserves are liquid assets after closing. Manhattan Beach jumbo loans typically require 12-24 months of mortgage payments in reserves.
Yes, if you're self-employed or own a business. We use 12-24 months of statements instead of tax returns to prove income.
FHA caps at $644,000 in LA County — irrelevant for Manhattan Beach. You need conventional or jumbo financing for properties here.
Yes, but VA caps at $766,550 with no down payment. Above that, you pay 25% of the difference as a down payment.
Jumbo loans take 30-45 days from application to close. Complex income or assets can push it to 60 days.
Expect 2 years tax returns, 60 days bank statements, recent pay stubs, and full asset documentation. Jumbo lenders verify everything.
Absolutely. Sellers here won't consider offers without solid jumbo pre-approval showing you can close a $2-4 million deal.
Jumbo rates run 0.25-0.50% higher than conforming loans. Rates vary by borrower profile and market conditions — we shop 200+ lenders for your best rate.
Yes. DSCR loans let you qualify based on rental income, not personal income, with 20-25% down required.
Expect 1.5-2.5% of purchase price. On a $2.5 million home, that's $37,500-62,500 in lender fees, title, escrow, and other costs.
Not if you put 20% down. Below 20%, some jumbo lenders charge PMI while others price it into your rate.
Yes. Foreign National loans require 30-40% down and use international income documentation, no US credit history needed.
You pay only interest for 7-10 years, then principal and interest. Works well for high earners with variable income or large bonuses.
ARMs start 0.50-1.00% lower than 30-year fixed. On a $2 million loan, that's $10-20k annual savings initially with adjustment risk later.
The Sand Section, Strand, and Hill Section command top dollar. Tree Section and East Manhattan Beach offer relatively lower entry points.
Yes. Jumbo lenders accept gift funds from family with proper documentation showing the money transferred and isn't a loan.
DSCR loans qualify you on rental income, not W-2 income. Perfect for Manhattan Beach investment properties or buyers with complex tax returns.
We use your 1099 gross income minus typical business expenses. Usually 75-80% of gross income qualifies you for the loan.
You qualify using investment accounts instead of income. We divide assets by 360 months to create qualifying income for underwriting.
Yes, with a construction or renovation loan. You borrow based on after-repair value, not current condition, with funds held in escrow.
Portfolio ARMs offer flexibility on income documentation and loan structure. Rates adjust but you avoid rigid conforming loan requirements.
Usually yes. Jumbo refinances require full appraisals to verify value and calculate loan-to-value ratio for approval.
Bridge loans let you buy before selling your current home. Rates run higher but you avoid contingent offers that sellers reject.
Yes, with P&L loans for self-employed borrowers. We need YTD statements and CPA-prepared financials showing consistent income.
Bank Statement loans work best for most. We average 12-24 months of deposits to prove income without tax return penalties.
LA County property tax is roughly 1.25% of purchase price annually. On a $2.5 million home, that's $2,600 monthly in your payment.
Not on jumbo loans. Every lender requires a full appraisal to verify you're not overpaying for a multi-million dollar property.
You renegotiate price, bring more cash to close, or cancel the deal. In competitive markets, sellers rarely budge on price.
Only if you're staying long-term. One point costs 1% of loan amount and drops your rate 0.25%. On $2 million, that's $20k upfront.
We shop 200+ wholesale lenders to find the best jumbo rate and program. Banks only offer their own products at retail pricing.
Lenders add HOA fees to your debt-to-income ratio. High HOAs reduce how much home you can afford since they count against qualifying income.
Yes. HELOCs let you tap equity up to 80-90% combined loan-to-value, great for renovations or bridge financing.
Foreign National or ITIN loans work here. You prove income from your home country and put 30-40% down without needing US credit.
Jumbo loans close in 30 days if paperwork is clean. We've closed in 21 days with motivated buyers who respond fast.
Recent bankruptcy, foreclosure, credit below 620, or debt ratios above 50%. Job gaps and undocumented income also kill jumbo loan approvals.
No, location doesn't change rates. Your credit, down payment, loan amount, and lender determine your rate regardless of neighborhood.
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.