Paramount Mortgage Questions Answered by Local Brokers

Pre-approval takes 24-48 hours with complete documents. Full approval averages 21-30 days from offer acceptance to close, faster with strong credit and clean income documentation.

FHA loans start at 580 credit, conventional at 620. Scores above 700 unlock better rates and lower down payment requirements across most loan types.

FHA requires 3.5% down, conventional as low as 3%. VA and USDA offer zero down for qualified buyers in eligible areas.

Yes, ITIN loans work for borrowers without Social Security numbers. You'll need 15-20% down and verified income through tax returns or bank statements.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers add profit and loss statements plus business bank records.

No, Paramount sits inside Los Angeles County's urban core. USDA loans target rural areas, which excludes all Paramount properties from eligibility.

FHA allows lower credit and smaller down payments but charges lifelong mortgage insurance. Conventional drops PMI at 20% equity and offers better rates above 680 credit.

Bank statement loans fit self-employed borrowers who write off most income. You'll pay 0.5-1% higher rates than conventional but avoid tax return scrutiny.

Active duty, veterans, and qualifying spouses get zero-down VA loans. You need a Certificate of Eligibility and minimum 580 credit score for most lenders.

Expect 2-5% of purchase price depending on loan type. FHA runs higher due to upfront mortgage insurance; seller credits can offset some buyer costs.

No, investment properties require 15-25% down depending on credit and reserves. Only primary residence loans offer low or zero down payment options.

DSCR loans approve based on rental income, not personal income. Investors with multiple properties or inconsistent W-2 income use them to skip tax return verification.

Lenders cap debt-to-income at 43-50% depending on loan type. Monthly housing plus debts shouldn't exceed half your gross monthly income for most programs.

FHA charges mortgage insurance regardless of down payment. Conventional requires PMI below 20% down but drops it once you hit 20% equity through payments or appreciation.

Jumbo loans exceed conforming limits for higher-priced properties. They require stronger credit and larger reserves but offer competitive rates for well-qualified borrowers.

Yes, FHA and conventional allow gifted down payments from family. You'll need a signed gift letter stating the funds don't require repayment.

Rates vary by borrower profile and market conditions. Your credit score, down payment, and loan type affect pricing more than geography within Los Angeles County.

ARMs offer lower initial rates for 5, 7, or 10 years before adjusting. They fit buyers planning to sell or refinance before the fixed period ends.

Bridge loans let you buy before selling your current home. They're expensive short-term financing, only worth it when you'll close your sale within six months.

Yes, cash-out refinancing works if you have 20%+ equity remaining after the new loan. Rates run higher than rate-and-term refinances.

California offers down payment assistance if you haven't owned in three years. These programs add extra paperwork and slightly higher rates in exchange for reduced upfront costs.

Pre-qualification is an estimate based on what you tell a lender. Pre-approval verifies income, assets, and credit through actual documentation—it carries weight with sellers.

Points make sense if you'll keep the loan past the breakeven period, usually 5-7 years. Most Paramount buyers refinance or sell sooner and skip points.

Yes, FHA 203k loans bundle purchase and renovation costs into one mortgage. They require contractor bids upfront and add timeline complexity versus standard purchases.

Asset depletion loans qualify you based on savings, not income. Retirees and trust fund recipients with large portfolios but limited monthly income use them regularly.

Traditional loans average your last two years of net income. Bank statement and P&L loans qualify on deposits instead, better for write-off-heavy businesses.

Yes, foreign national loans work without U.S. credit or tax history. Expect 30-40% down and higher rates since lenders take on more risk.

Portfolio ARMs come from individual lenders, not government programs. They offer flexible underwriting for complex income situations that don't fit conventional boxes.

Investment properties and jumbos require 6-12 months reserves. Primary residence FHA and conventional need minimal reserves unless compensating for other risk factors.

You pay only interest for 5-10 years before principal kicks in. They fit high earners expecting income growth or investors maximizing cash flow short-term.

Cash offers close in 7-14 days. Financed deals need 21+ days—submit complete documents upfront and respond to underwriting requests within 24 hours.

FHA and VA loans are assumable with lender approval. You'll still qualify based on income and credit, but you inherit the seller's existing rate.

You renegotiate price, bring more cash to close, or walk away if you have an appraisal contingency. Lenders only fund based on the lower of price or appraised value.

Construction loans fund in draws as work completes. You need detailed plans, contractor agreements, and 20-25% down before breaking ground on new builds or major renovations.

Community Mortgages lower debt-to-income requirements for qualified buyers. They expand approval odds for borderline income situations on primary residences only.

HELOCs offer flexible draw periods, HELoans give lump sums with fixed rates. Choose based on whether you need ongoing access or one-time funding for specific projects.