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Monrovia Mortgage FAQ
Buyers in Monrovia face unique challenges in Los Angeles County's competitive foothills market. Our team answers the mortgage questions we hear most from clients buying near Old Town and the San Gabriels.
With access to 200+ wholesale lenders, we match borrowers to loan programs most retail banks won't mention. Self-employed? Investor? Foreign national? We handle those daily.
These FAQs cover what actually matters when financing a home in Monrovia. Skip the generic advice—this is what works for borrowers in this city.
Most purchase loans close in 21-30 days with complete documentation upfront. Refinances often finish faster at 15-21 days since no purchase contract is involved.
Conventional loans require 620 minimum. FHA accepts 580 with 3.5% down, though most lenders prefer 600+ for smoother underwriting.
Yes. Conventional 97 programs allow 3% down for first-time buyers. FHA requires 3.5%, and some community programs offer down payment assistance.
Most jumbo lenders want 10-20% down depending on credit and reserves. Expect 15% minimum for smooth approval on properties over $1.3 million.
No. Foreign nationals can qualify with 25-30% down through specialized programs. ITIN borrowers also have multiple loan options available.
Your total monthly debts including the new mortgage should stay under 43-50% of gross income. Self-employed borrowers can use bank statements instead of tax returns.
Bring two months of bank statements, two years of tax returns, recent pay stubs, and photo ID. Self-employed clients need 12-24 months of business bank statements.
Absolutely. We use 12 or 24 months of personal or business bank statements to calculate income. No tax returns required for qualification.
DSCR loans approve based on rental income, not your personal income. Investors use these to avoid showing tax returns or employment history.
Yes. DSCR, bank statement, and portfolio loans all work for investors. Expect 15-25% down and slightly higher rates than owner-occupied financing.
Plan for 2-3% of the purchase price in closing costs. This covers appraisal, title, escrow, lender fees, and prepaid items like property taxes.
Yes. Sellers can contribute up to 3-6% depending on loan type and down payment. Your offer needs to request this upfront.
PMI is mortgage insurance required on conventional loans under 20% down. Avoid it by putting 20% down or using a piggyback second mortgage.
Only if you'll keep the loan past the break-even point, usually 3-5 years. Most Monrovia buyers refinance or move before that timeline hits.
FHA allows lower credit and smaller down payments but requires mortgage insurance for life on 3.5% down deals. Conventional drops PMI at 20% equity.
Veterans can buy with zero down and no PMI through VA loans. Rates often beat conventional, and sellers can pay all closing costs.
Jumbo loans exceed $806,500 in Los Angeles County. Expect stricter credit requirements, larger reserves, and rates that vary by borrower profile.
ARMs start with lower rates but adjust after the fixed period ends. They make sense if you'll sell or refinance within 5-7 years.
You should. Pre-approval shows sellers you're serious and can close. It takes 24-48 hours with complete documents submitted upfront.
Pre-qualification is an estimate based on what you tell us. Pre-approval means underwriting reviewed your actual documents and approved the loan amount.
Lenders approve debt ratios up to 50%, but comfortable payments keep housing under 30% of gross income. We help you find the right balance.
No. Conventional and VA offer the lowest rates. Non-QM programs like bank statement loans run 0.5-2% higher due to flexible underwriting.
Most lenders require a property address to lock. Some offer float-down options that protect you if rates drop before closing.
You can renegotiate the price, bring extra cash to close, or cancel using your appraisal contingency. We help navigate each option.
Depends on the loan. Conventional often requires 2-6 months of payments in savings. Investment properties need 6-12 months minimum.
Yes. Most programs allow gifted down payments from family. The donor signs a letter confirming it's a gift, not a loan.
Bridge loans let you buy before selling your current home. Rates run higher, but they solve timing problems in competitive markets.
California offers CalHFA programs with down payment assistance and lower rates. Requirements include income limits and buyer education courses.
Once you hit 20% equity through payments or appreciation, you can refinance to drop PMI. Appraisal must confirm the new value.
You refinance for more than you owe and take the difference in cash. Useful for home improvements, debt consolidation, or investment capital.
A HELOC is a credit line against your home equity. You draw funds as needed and pay interest only on what you borrow.
Construction loans and FHA 203k programs finance both purchase and renovations. They require detailed contractor bids and draw schedules.
Lenders count 0.5-1% of the balance as monthly debt, or use the actual payment if it's higher. Income-based repayment plans can lower this.
Yes. FHA and conventional loans finance 2-4 unit properties as primary residences. You need 3.5-15% down depending on the program.
These loans qualify you based on liquid assets like stocks or retirement accounts rather than income. Retirees use these frequently.
FHA allows purchases 2 years after Chapter 7 discharge. Conventional requires 4 years. Some portfolio lenders go earlier with higher down payments.
Borrowers 62+ can convert home equity into cash without monthly payments. Loan is repaid when you sell or pass away.
VA and FHA loans are assumable with lender approval. You take over their rate and terms, which can save money if rates climbed.
One late payment damages your credit for years. Contact your lender immediately—most offer forbearance or modification before foreclosure starts.
We review your income documentation, credit, and goals to match you with the right program. Most borrowers qualify for multiple options.
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.