Pico Rivera Mortgage FAQs: Your Questions Answered by Los Angeles County Brokers

FHA loans require 3.5% down. Conventional loans start at 3% for first-time buyers. Higher down payments unlock better rates.

Most conventional loans require 620 minimum. FHA accepts 580 with 3.5% down, or 500 with 10% down.

Most purchase loans close in 25-35 days. Cash-out refinances take 30-45 days because of additional verification.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed buyers need additional business documentation.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer P&L statement and 1099 programs.

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

FHA works better with lower credit scores or small down payments. Conventional offers better rates above 680 credit and 10% down.

Conventional loans require PMI below 20% down. FHA charges upfront and annual mortgage insurance regardless of down payment.

Yes. Most programs allow gifts from family members with a signed letter. You still need some of your own funds for reserves.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified your income, assets, and credit.

Jumbo loans typically require 700+ credit, 10-20% down, and debt-to-income below 43%. Reserve requirements run 6-12 months.

DSCR loans qualify based on rental income, not personal income. Investors use them to scale without W-2 or tax return limits.

Yes. Conventional investment loans allow 15% down with strong credit. DSCR loans offer similar terms based on property cash flow.

Adjustable rate mortgages offer lower initial rates that adjust after 5, 7, or 10 years. They work if you'll sell or refinance before adjustment.

We average 12-24 months of business deposits to calculate income. This bypasses tax returns where you write off most earnings.

ITIN loans use your Individual Taxpayer Identification Number instead of a Social Security number. You still need income verification and qualifying credit.

Yes. VA loans require no down payment and no PMI. You need a Certificate of Eligibility and the home must meet VA appraisal standards.

One point equals 1% of the loan amount and typically lowers your rate by 0.25%. Points make sense if you'll keep the loan 5+ years.

Lenders cap total debt at 43-50% of gross income. Calculate your target payment, then work backward to required income.

FHA accepts down to 580. Below that, you'll need 10% down or spend 3-6 months improving credit before applying.

Most loans require the home to be move-in ready. FHA 203(k) and renovation loans let you finance repairs into the mortgage.

DTI divides monthly debt payments by gross income. Conventional loans max out around 43-50%. Lower DTI unlocks better rates.

Every 20-point drop below 740 increases your rate. The gap between 640 and 740 can cost 1-1.5% in rate. Rates vary by borrower profile and market conditions.

You pay significantly less interest and build equity faster. Monthly payments run 30-50% higher than 30-year terms.

On refinances, yes. On purchases, you can ask the seller to cover costs, but you can't increase the loan amount above purchase price.

Asset depletion divides your liquid assets by 360 months to create qualifying income. Retirees and high-net-worth buyers use these.

Foreign nationals can buy U.S. property with 25-30% down. You need a U.S. credit report or alternative credit documentation.

HELOCs are revolving credit lines you draw from as needed. Home equity loans provide a lump sum with fixed payments.

You can refinance later if rates fall. Waiting means competing with more buyers when rates improve. Lock your home first.

You can renegotiate the price, bring extra cash to cover the gap, or walk away if you have an appraisal contingency.

Yes. Lenders count 75% of projected rental income if you'll owner-occupy. Investment properties use actual lease agreements or market rent.

Portfolio ARMs are held by the lender, not sold to Fannie or Freddie. They offer flexible underwriting for non-traditional borrowers.

Bridge loans use equity from your current home for the new down payment. You carry two mortgages temporarily until your old home sells.

Recent bankruptcies, foreclosures, late payments, and high utilization hurt most. Collections under $5,000 often don't require payoff before closing.

Yes. You need enough income to qualify for both payments. Second homes require 10% down minimum; investment properties need 15-25%.

Fixed rates protect against increases but start higher. ARMs save money short-term if you'll move or refinance within 5-7 years.

Pay down credit cards below 30% utilization, avoid new credit inquiries, and increase your down payment if possible.

Most programs require 2-6 months of mortgage payments in savings after closing. Investment properties and jumbos need 6-12 months.

Banks offer their own limited menu of loans. We shop 200+ lenders to find better rates and programs that fit your situation.

We can pre-approve you in 24-48 hours once we receive documents. Full underwriting takes 7-10 days depending on complexity.