Monterey Park Mortgage Questions Answered by Local Brokers

FHA loans require 3.5% down, conventional loans start at 3% for first-time buyers. VA and USDA loans can go zero down if you qualify.

Conventional loans typically need 620 minimum. FHA will approve borrowers at 580 with 3.5% down, or 500 with 10% down.

Most purchases close in 30-45 days from accepted offer. Refinances run 25-35 days depending on appraisal turnaround.

W-2 borrowers need two years of tax returns and recent pay stubs. Self-employed need full returns plus year-to-date profit and loss.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We close these regularly for business owners here.

FHA allows lower credit and smaller down payments but charges ongoing mortgage insurance. Conventional drops PMI once you hit 20% equity.

Active military, veterans, and some spouses qualify with zero down and no PMI. You need a Certificate of Eligibility from the VA.

Expect 2-5% of the purchase price. This covers lender fees, title, escrow, recording, and prepaid taxes and insurance.

Only if you're keeping the loan at least 3-5 years. Calculate breakeven before buying points in Monterey Park's market.

Yes. Family members can gift funds with a signed letter confirming no repayment required. We handle this documentation routinely.

Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. Put 20% down or use a piggyback loan to skip it.

Loans above $806,500 in Los Angeles County are jumbo. Expect stricter credit requirements and larger down payments, typically 10-20%.

Yes. DSCR loans approve based on rental income, not your tax returns. Minimum 20% down for most investor loans.

Debt Service Coverage Ratio loans use property rent to qualify you. Investors who don't want to show personal income use these.

No license required to buy rental property. DSCR and investor loans work for anyone purchasing income property in Monterey Park.

ITIN loans let foreign nationals and non-residents buy using an Individual Taxpayer Identification Number. Rates run higher than conventional.

Adjustable rate mortgages start lower than fixed rates but adjust later. Smart if you're selling or refinancing within 5-7 years.

Lenders average 12 or 24 months of business deposits instead of tax returns. Expect to put 10-20% down.

Pre-qualified is an estimate. Pre-approved means underwriting reviewed your documents and you're cleared to close subject to appraisal.

Yes, once your home reaches 20% equity. We run these refinances constantly in Monterey Park as values climb.

Bridge loans let you buy before selling your current home. Rates run higher but give you flexibility in competitive markets.

Construction loans fund in draws as work completes. You convert to permanent financing once the home is finished and appraised.

Yes. Asset depletion loans let you qualify using IRA or 401k balances divided over loan term as income.

Home equity lines of credit work like credit cards against your equity. Good for ongoing projects, but rates adjust monthly.

No. Rates depend on your credit, down payment, and loan type. Property location doesn't affect your rate directly.

You pay only interest for 5-10 years, then principal kicks in. Monthly payments jump significantly when the IO period ends.

Only if the complex is FHA-approved. Many aren't due to owner-occupancy ratios and reserve requirements. We check this immediately.

An 80-10-10 structure uses a second mortgage for part of your down payment to avoid PMI. We run these when it saves you money.

Most loans max out at 43-50% DTI. DSCR loans ignore your DTI entirely and qualify on property cash flow.

FHA allows purchases two years after Chapter 7 discharge. Conventional loans require four years minimum from discharge date.

We shop 200+ lenders instead of offering one bank's products. That means better rates and more loan options for your situation.

Most refinances require an appraisal to confirm current value. Some streamline programs skip appraisals if you have equity and payment history.

You can renegotiate the price, bring more cash to close, or walk if you have an appraisal contingency. We help you evaluate options.

Some lenders offer float-down locks before you go under contract. These protect you if rates rise while you shop.

Conventional and FHA loans close quickest with clean financials. Hard money closes in days but costs significantly more.

Investment properties require 6 months PITI in reserves. Primary residences typically don't unless you're using asset depletion or have marginal credit.