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Palos Verdes Estates Mortgage FAQ
Palos Verdes Estates sits at the premium end of the South Bay market. Most buyers here need jumbo financing because conforming loan limits don't stretch far enough.
We work with hundreds of lenders who compete for your business. That matters in a city where oceanview properties demand specialized underwriting and flexible documentation.
The questions below come from real buyers working through PV Estates purchases. We answer them the way we would in our office—straight, specific, and focused on what actually affects approval.
Most conforming loans require 620 minimum, but jumbo lenders typically want 680 or higher. Oceanfront properties above $3M often require 700+ for best pricing.
FHA allows 3.5% down, conventional starts at 3%, but most PV Estates buyers put down 20-30% to avoid PMI and secure jumbo rates. Properties over $2M usually require at least 20%.
Anything above $806,500 is jumbo in 2024. Most Palos Verdes Estates properties require jumbo financing given local price points.
Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer profit and loss programs and 1099 loans for independent contractors.
Standard timeline is 21-30 days from application to closing. Jumbo loans sometimes add 5-7 days for additional underwriting review.
Bring two months of bank statements, two years of W-2s or tax returns, recent pay stubs, and ID. Self-employed borrowers need full returns with all schedules.
Jumbo lenders typically require 6-12 months of mortgage payments in reserves. High-balance loans above $2M may require 12-18 months in liquid assets.
FHA allows 3.5% down with 580 credit but charges permanent mortgage insurance. Conventional requires 3-20% down, better rates, and drops PMI at 20% equity.
Absolutely. We use 12 or 24 months of personal or business bank statements to calculate qualifying income. Useful when tax returns show lower income than actual cash flow.
Rates vary by borrower profile and market conditions. Jumbo rates typically run 0.125-0.375% higher than conforming, depending on loan size and down payment.
Oceanfront and landslide zone properties require specialized lenders and sometimes higher down payments. Not all lenders approve loans in geological hazard areas.
Debt Service Coverage Ratio loans qualify based on rental income, not your personal income. Perfect for investors buying rental properties in PV Estates.
Yes. ITIN loans use Individual Taxpayer Identification Numbers and typically require 15-20% down with slightly higher rates than conventional programs.
Budget 2-5% of purchase price. Jumbo loans typically add $500-1,500 in extra fees for larger underwriting files and appraisal complexity.
One point costs 1% of loan amount and typically reduces rate by 0.25%. Makes sense if you're keeping the loan longer than 4-5 years.
We shop 200+ lenders to find programs banks don't offer—bank statement, asset depletion, portfolio ARMs. You get options instead of whatever one bank approves.
Yes on conventional and FHA loans. Donor must provide a gift letter stating funds don't require repayment. Jumbo lenders may require you to contribute 5-10% personally.
Qualifies borrowers using investment accounts instead of employment income. We divide total assets by 360 months to create qualifying income for retirees or high-net-worth buyers.
ARMs offer lower initial rates that adjust after a fixed period. A 7/1 ARM stays fixed for seven years, then adjusts annually based on an index.
FHA 203k and conventional renovation loans fund purchase plus repairs in one loan. Hard to find contractors willing to work under FHA timelines in this market though.
Jumbo ARMs offer rates 0.5-0.75% below fixed jumbos for the initial period. Smart choice if you're selling within 5-7 years or refinancing when rates drop.
Most lenders require one. Oceanview properties need appraisers experienced with coastal comps—can add 7-10 days to timeline versus standard properties.
PMI protects the lender if you default with less than 20% down. Avoid it by putting 20% down or using a piggyback second mortgage.
Yes. Foreign national loans require 20-40% down, don't need US credit or Social Security numbers, and close in 30-45 days with proper documentation.
Bridge loans let you buy before selling your current home. Useful in PV Estates where good inventory moves fast and sellers prefer non-contingent offers.
Most lenders cap DTI at 43-50% depending on loan type. Jumbo lenders are stricter—usually 43% maximum unless you have exceptional credit and reserves.
Yes. Investment property loans require 15-25% down with slightly higher rates. DSCR loans don't require personal income verification—just positive rental cash flow.
Non-conforming ARMs held by private lenders instead of Fannie or Freddie. More flexible underwriting for unique properties or income situations common in high-end markets.
Lenders approve roughly 4-5 times your annual income depending on debts and down payment. Higher incomes sometimes stretch to 6x with strong reserves and credit.
Construction loans fund land purchase and building costs in stages as work completes. Convert to permanent mortgage when construction finishes—expect 12-18 month timelines.
Yes. You can withdraw from 401k or IRA for home purchase. Asset depletion loans can also use retirement balances to create qualifying income without withdrawing funds.
Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit—carries weight with sellers in competitive markets.
You pay only interest for 5-10 years, then principal and interest after. Popular with high-income buyers who invest the payment difference or expect income growth.
You can renegotiate price, bring extra cash to close the gap, or cancel if you have an appraisal contingency. In PV Estates, most sellers won't budge in strong markets.
Yes. Cash-out refinancing replaces your current loan with a larger one and gives you the difference in cash. HELOCs and home equity loans are also options.
Recent bankruptcy, foreclosure, short sale, or collections over $5,000 create problems. Waiting periods vary: 2-7 years depending on loan type and circumstances.
Yes. VA loans require no down payment and no PMI for eligible veterans. Jumbo VA loans are available above standard limits with competitive rates.
The maximum Fannie Mae and Freddie Mac will buy—$806,500 in Los Angeles County for 2024. Anything above requires jumbo financing with different qualification rules.
Condos require 10-15% down minimum versus 3% for single-family homes. Co-ops, multi-family properties, and unique constructions need specialized programs with higher down payments.
15-year mortgages carry rates 0.5-0.75% lower but require double the monthly payment. You build equity faster and pay far less total interest over the life of the loan.
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.