Palmdale Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans require 3.5% down, conventional loans start at 3% for first-time buyers. VA and USDA loans offer 0% down if you qualify.

FHA accepts 580 minimum, conventional typically requires 620. We have portfolio lenders who go to 550 for specific programs.

Standard purchases close in 21-30 days. Cash-out refinances often take 30-45 days due to appraisal timelines in Los Angeles County.

Absolutely. We use bank statement loans, 1099 loans, or profit and loss statement programs for self-employed borrowers daily.

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

Most of Palmdale doesn't qualify as rural under USDA maps. Check specific addresses, but options are extremely limited here.

W-2s or 1099s for two years, recent pay stubs, two months bank statements, and ID. Self-employed borrowers need additional income documentation.

Yes. Palmdale has active military and veteran buyers using VA loans with 0% down daily.

Rates vary by borrower profile and market conditions. Your credit score, loan type, and down payment affect your rate significantly.

Only if you're staying in the home long enough to recoup the cost. Most Palmdale buyers don't hold loans beyond seven years.

Expect 2-5% of purchase price. This includes lender fees, title insurance, escrow, and county recording fees.

Yes. We offer investor loans, DSCR loans that qualify on rental income, and portfolio products for multi-property owners.

DSCR loans qualify you based on rental income, not personal income. Investors use these to avoid tax return reviews.

You pay PMI monthly until you reach 20% equity. FHA charges mortgage insurance for the loan's life on low down payments.

Conventional PMI drops at 20% equity through payments or appreciation. FHA requires refinancing to conventional to remove it.

Lenders use 12-24 months of bank deposits instead of tax returns. Self-employed borrowers with write-offs use these frequently.

Yes. ITIN loans are available for borrowers without Social Security numbers who have strong payment history.

Loans above $766,550 in 2024. Jumbo loans require stronger credit and larger down payments than conforming loans.

FHA 203k and conventional renovation loans work for fixers. Construction loans handle ground-up builds or major rehabs.

ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They make sense if you're not keeping the loan long-term.

We shop 200+ lenders to find your best rate and program. Banks only offer their own products.

Most lenders require six months of payment history. Cash-out refinances often need 12 months seasoning.

Your total monthly debts divided by gross income. Most programs allow up to 50% DTI with compensating factors.

Yes. Lenders count 1% of the balance monthly or use your actual payment if it's higher and documented.

FHA allows unpaid collections under certain limits. Conventional requires paying off collections over $5,000 before closing.

Lenders qualify you using investment or bank account balances instead of income. Retirees and asset-rich borrowers use these.

Bridge loans let you buy before selling your current home. They're short-term and require significant equity.

Real estate investors use hard money for quick closes or properties that don't qualify for traditional financing.

Yes. Foreign national loans require larger down payments but don't require U.S. credit history or Social Security numbers.

Adjustable rate loans held by the lender, not sold to Fannie or Freddie. These offer flexible underwriting for unique situations.

HELOCs let you borrow against equity as needed during a draw period. You pay interest only on what you use.

HELOCs offer flexibility with variable rates. Home equity loans provide fixed rates and lump sum disbursement.

Borrowers 62+ can convert equity to income without monthly payments. The loan is repaid when you sell or pass away.

You can renegotiate price, bring more cash, or cancel if you have an appraisal contingency. Low appraisals limit loan amounts.

Initial underwriting takes 3-7 days. Conditions and re-reviews add time, especially with complex income documentation.

Yes. You must provide proof of insurance binding on closing date to fund the loan.

Rate locks typically last 30-60 days. Lock when you have a signed purchase contract or refinance timeline.

You pay only interest for a set period, then principal and interest. Investors and high-income borrowers use these strategically.

15-year loans build equity faster with lower rates but higher payments. 30-year terms offer payment flexibility.

Absolutely. Pre-approval shows sellers you're serious and helps you understand your budget before shopping.