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Community Mortgages in Paramount
Paramount sits in a prime position for community mortgage programs. These loans target exactly the type of working-class neighborhoods where traditional lending often misses good borrowers.
Community mortgages bridge the gap between strict conventional requirements and local income realities. Programs through Fannie Mae's HomeReady and Freddie Mac's Home Possible dominate this space.
Most Paramount buyers using community programs earn 60-80% of area median income. That puts qualifying income around $50,000-$70,000 for a household, depending on size.
Credit scores start at 620 for most community mortgage programs. Down payments drop to 3%, and you can use gift funds or grants for the entire amount.
Income matters more here than with standard loans. You must fall below area median income caps, but that covers most Paramount households.
Lenders count rent payments from boarders living with you. They also accept non-traditional credit like utility bills and rent history when credit files are thin.
First-time buyers get preference, but you qualify if you haven't owned in three years. Investment properties don't qualify—these loans fund primary residences only.
Not every lender offers community mortgage programs despite Fannie and Freddie backing them. Many retail banks skip these products entirely because underwriting takes more work.
Credit unions and community development lenders do the most volume here. They understand the documentation differences and actually train underwriters on alternative credit.
SRK Capital accesses wholesale lenders who specialize in these programs. We match your profile to lenders who won't balk at non-traditional income sources or thin credit files.
Rate sheets vary wildly between lenders on community products. Shopping across 200+ wholesale sources typically saves 0.25-0.50% compared to going direct.
Community mortgages work best for Paramount buyers with stable income but non-traditional profiles. Think self-employed workers, families with boarders, or buyers rebuilding credit.
The income documentation gets creative. We've closed deals using cash business income verified through bank deposits, relative contributions counted as household income, and child support with just six months remaining.
Mortgage insurance costs less on community loans than standard conventional. HomeReady and Home Possible cap MI at lower rates because default data shows these borrowers perform well.
Pair these with local down payment assistance programs and you buy with almost nothing out of pocket. Los Angeles County offers several DPA options that stack with community mortgages.
FHA loans compete directly with community mortgages in Paramount. FHA allows 580 credit scores but requires 3.5% down versus 3% for community programs.
Mortgage insurance tips the scale. FHA charges higher MI that never drops off. Community mortgages let you cancel MI at 80% loan-to-value, saving thousands over the loan life.
Standard conventional loans need 5% down minimum and don't offer the income flexibility. You'll pay less for MI on conventional, but the stricter underwriting knocks out many Paramount buyers.
USDA loans work if you buy in eligible zones, but Paramount proper doesn't qualify. You'd need to look at outer LA County areas for USDA eligibility.
Paramount's housing stock skews toward smaller single-family homes and condos. Community mortgages handle both, but condo approval lists matter—not all projects qualify.
Property condition affects approval since these programs require homes to meet standard habitability. Paramount's older housing sometimes needs minor repairs before closing.
Proximity to employment centers in downtown LA and Long Beach helps income calculations. Shorter commutes mean lenders worry less about transportation costs eating into housing budget.
Local home prices typically fit well within conforming loan limits. That keeps community mortgage options wide open without jumping to jumbo territory.
Income caps hit around 80% of Los Angeles County area median income, roughly $70,000-$85,000 depending on household size. Limits adjust annually based on HUD data.
Yes, you can use gifts for the entire 3% down payment. Donors must document the funds and sign a gift letter stating no repayment is expected.
Most lenders require an online homebuyer education course, typically 6-8 hours. Some waive this if you've owned property before or have substantial assets.
MI rates run lower than standard conventional loans. You can cancel MI once you reach 80% loan-to-value through payments or appreciation.
Self-employment works fine with bank statement verification or tax returns. Lenders need 12-24 months of consistent deposits showing adequate income.
Yes, up to four units if you occupy one. Rental income from other units helps you qualify with proper documentation and lease agreements.
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.
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.