Montebello Mortgage FAQs: Your Questions Answered by Local Experts

Standard approvals take 3-5 weeks from application to closing. Bank statement and asset depletion loans add 1-2 weeks for extra documentation review.

FHA loans start at 580 credit score with 3.5% down. Conventional loans need 620 minimum, though 680+ gets better rates and terms.

On conventional loans, yes. FHA requires mortgage insurance regardless of down payment, while VA and USDA loans have no PMI at all.

Bank statement loans use 12-24 months of business bank deposits instead of tax returns. We calculate income from average monthly deposits minus a standard expense ratio.

Yes, 1099 loans verify income through your contractor statements rather than W-2s. You'll need 12-24 months of consistent 1099 income history.

Expect 2-5% of purchase price for closing costs. That includes lender fees, title insurance, escrow, and prepaid property taxes.

Lenders cap your total monthly debt at 43-50% of gross income. Calculate your max payment, then work backward to determine purchase price.

FHA works better for lower credit scores and smaller down payments. Conventional wins if you have 5%+ down and 680+ credit due to lower mortgage insurance.

DSCR loans qualify based on rental income, not personal income. They work for Montebello investors buying multi-family or rental properties.

Yes, ITIN loans are available for foreign nationals and non-residents. Expect larger down payments and slightly higher rates than conventional loans.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, credit, and assets—sellers take it seriously.

ARMs offer lower initial rates for 3, 5, 7, or 10 years, then adjust annually. They make sense if you'll sell or refinance before adjustment.

Yes, FHA and conventional loans allow gift funds from family members. You'll need a gift letter stating the money doesn't require repayment.

Jumbo loans exceed conforming limits and finance higher-priced properties. They require stronger credit and larger down payments but offer competitive rates.

Most loans require 2-6 months of mortgage payments in reserve after closing. Investment properties and jumbo loans need higher reserves.

Bridge loans let you buy before selling your current home. They're short-term and expensive but solve timing problems in competitive markets.

Each point costs 1% of loan amount and lowers your rate by roughly 0.25%. Pay points if you'll keep the loan long enough to recoup the upfront cost.

FHA allows approval 2 years after bankruptcy or 3 years after foreclosure. Conventional loans require 4 and 7 years respectively with credit rebuilding.

Asset depletion uses retirement accounts or investments to qualify instead of income. Lenders divide total assets by 360 months to calculate monthly income.

You pay only interest for 5-10 years, then principal plus interest. Monthly payments start lower but eventually jump when amortization begins.

PMI is private mortgage insurance required on conventional loans under 20% down. Avoid it with 20% down, piggyback loans, or lender-paid options.

FHA 203k and conventional renovation loans finance purchase plus repairs in one mortgage. You'll need detailed contractor bids and renovation plans upfront.

P&L loans need 12-24 months of business profit and loss statements, often CPA-prepared. They work for self-employed buyers without full tax returns.

VA loans require no down payment and no mortgage insurance for eligible veterans. Rates are competitive and the VA funding fee can be financed.

A rate lock guarantees your rate for 30-60 days during closing. Lock when rates are favorable or if you're risk-averse about increases.

Yes, a HELOC on your current home can fund a down payment. Just know you'll carry two monthly payments until you sell.

Fixed rates never change over 15-30 years. ARMs offer lower initial rates but adjust after 3-10 years based on market indexes.

Portfolio ARMs are held by the lender, not sold to investors. This allows more flexible terms and underwriting for unique borrower situations.

LA County charges $1.10 per $1,000 of sale price. Montebello may have additional city transfer taxes—check with your escrow officer.

Waiting rarely works because lower rates drive up prices and competition. You can refinance later if rates improve significantly.

DTI divides total monthly debt by gross monthly income. Most loans cap DTI at 43-50%, though some portfolio products allow higher ratios.

Absolutely, but you'll need either two years of tax returns or a bank statement loan that uses deposits. Both routes require consistent income history.

The gap is the difference between sale price and appraised value. Buyers must cover it with cash since lenders only finance appraised value.

Foreign nationals can buy with 20-30% down and valid passport plus visa. Rates run slightly higher than conventional loans.

Community mortgages offer down payment assistance or reduced requirements for specific neighborhoods or buyer groups. Eligibility varies by program and income limits.

Yes, refinancing makes sense when rates drop 0.75%+ or you want to pull equity out. Most lenders require 6-12 months of payment history first.