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Rancho Palos Verdes Mortgage FAQ
Rancho Palos Verdes sits on coastal bluffs with ocean views and strict hillside building codes. That geography shapes what lenders approve and how they underwrite properties here.
Most homes here hit jumbo territory fast. We see clifftop estates alongside mid-century ranches, each requiring different loan structures and appraisal approaches.
These FAQs come from actual deals we've closed on the Peninsula. They cover coastal property quirks, jumbo loan options, and what makes financing here different from flat LA neighborhoods.
Most purchases close in 30-35 days here. Hillside properties with geological reports sometimes add 5-10 days for lender review.
Most RPV properties exceed the $806,500 conforming limit. We shop jumbo programs across 200+ lenders to find competitive rates.
Lenders require geological surveys for homes near bluff edges. Some won't finance properties within setback zones regardless of survey results.
Jumbo loans here typically need 700+ credit. We have portfolio lenders who'll go to 680 for strong borrowers with larger down payments.
Yes, we close many bank statement loans in RPV for business owners. You'll need 12-24 months of statements showing consistent deposits.
Most buyers put down 20-30% on jumbo purchases. Lower down payments work but trigger higher rates and PMI on loans under $806,500.
No city-specific programs exist here. Conventional, jumbo, and portfolio loans dominate because home prices exceed FHA and USDA limits.
Golf course proximity doesn't change lending terms. But ocean-view premiums push most nearby properties into jumbo loan territory.
Standard docs include tax returns, pay stubs, bank statements, and purchase contract. Hillside homes add geological and foundation reports.
Yes, we have ITIN loan programs for foreign nationals and non-citizens. Expect 20-30% down and slightly higher rates than conventional.
FHA caps at $644,000 in Los Angeles County, well below most RPV prices. You'll need conventional or jumbo for nearly all properties.
Veterans can use VA loans up to $806,500 with zero down. Above that limit you'll need 25% down on the excess amount.
Lenders add HOA dues to your monthly debt when calculating ratios. RPV's typical $150-400 HOAs rarely block approval on high-priced homes.
Expect 2-3% of loan amount for lender fees, title, escrow, and appraisal. On a $1.5M purchase, that's $30,000-$45,000 in closing costs.
Some lenders offer single-premium PMI or piggyback seconds to avoid monthly PMI. You'll pay higher rates or upfront costs instead.
DSCR loans work for investment properties based on rental income, not personal income. We see them for second homes rented short-term.
Standard purchases clear underwriting in 7-10 days. Bluff properties needing geological review can take 14-18 days total.
Construction loans work for major renovations. For minor repairs, conventional loans allow some issues if the home meets safety standards.
Rates vary by borrower profile and market conditions. Strong credit and 25% down typically get rates within 0.25-0.50% of conforming loans.
Most RPV homes sit outside FEMA flood zones. Lenders require it only if the property falls within a designated flood area.
Bridge loans let you tap current home equity to buy in RPV before closing your sale. Expect 12-month terms and higher rates.
Yes, lenders accept gifted down payments from family. You'll need a gift letter stating the funds don't require repayment.
Asset depletion qualifies you using investment accounts instead of income. Common for retirees with stock portfolios but limited W-2 earnings.
ARMs make sense if you'll move or refinance within 5-7 years. Initial rates run 0.50-1.00% below fixed jumbos currently.
With 20% down, expect to show $35,000-$40,000 monthly income depending on other debts. Self-employed income needs two-year history.
Portfolio ARMs are held by lenders instead of sold to investors. They offer flexibility on credit, income, or property issues standard loans reject.
Appraisal waivers don't happen on jumbos. Every RPV purchase needs a full appraisal regardless of down payment size.
Jumbo lenders typically require 6-12 months of mortgage payments in reserves post-closing. That's principal, interest, taxes, and insurance combined.
We shop 200+ wholesale lenders to find the best rate and program fit. Banks only offer their own products at their posted rates.
Interest-only payments run 5-10 years, lowering monthly costs on rentals. You'll need strong credit and 25-30% down for investor properties.
Yes, foreign national programs require 30-40% down and don't need US credit or income verification. Rates run 1-2% above conventional.
You'll need to cover the gap in cash, renegotiate price, or cancel. Jumbo lenders won't exceed appraised value regardless of contract price.
Most jumbo loans have no prepayment penalties. Some portfolio and hard money loans charge 1-3% if you pay off early.
Jumbo lenders cap DTI at 43-45% typically. Strong credit and reserves can push that to 50% with some portfolio lenders.
Bank statement or profit-and-loss loans work for business owners who write off income. We calculate qualifying income from deposits instead.
Construction loans cover demolition and new builds. Expect 20-30% down, detailed plans, and a licensed contractor before approval.
Standard locks run 30-45 days. We can extend to 60 days for complex deals, though longer locks cost 0.125-0.25% in rate.
Reverse mortgages let homeowners 62+ tap equity without monthly payments. You keep the title and loan comes due when you sell or pass.
California uses escrow companies, not attorneys, for closings. Your broker and escrow officer handle all paperwork and fund disbursement.
Refinances follow the same process as purchases: new appraisal, income verification, and credit check. Cash-out refis need 20% equity minimum.
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.