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Redondo Beach Mortgage FAQ
Buying in Redondo Beach means competing in one of LA County's most desirable coastal markets. Prices run high, inventory moves fast, and you need financing that works.
We've answered the mortgage questions Redondo Beach buyers actually ask. From jumbo loan requirements to beachfront condo approvals, these are the answers that matter.
SRK CAPITAL shops 200+ wholesale lenders to find rates and programs that fit your situation. We've closed deals in every Redondo Beach neighborhood.
Most Redondo Beach buyers put down 20% on conventional loans to avoid PMI and stay competitive. FHA allows 3.5% down, but you'll face tougher competition in multiple-offer scenarios.
Probably. Conforming loan limits top out at $806,500 for 2024, and most Redondo Beach homes exceed that. Jumbo loans require stronger credit and larger reserves.
Conventional loans want 620 minimum, but 700+ gets you better rates. FHA accepts 580 with 3.5% down, though some lenders set overlays at 600.
Lenders cap your debt-to-income ratio at 43-50% depending on loan type. For a $1.5M home with 20% down, expect to show $250K+ annual income.
Yes. Bank statement loans work well for self-employed buyers who can't produce W-2s. We verify income through 12-24 months of business or personal bank deposits.
Bring two years of tax returns, two months of bank statements, recent pay stubs, and W-2s. Self-employed buyers need profit and loss statements plus business bank records.
Most conventional and jumbo loans close in 25-35 days. FHA and VA loans can stretch to 40 days due to appraisal requirements and additional inspections.
FHA loans offer 3.5% down options, and conventional loans allow 3% down for qualified first-timers. California also offers CalHFA programs with down payment assistance.
FHA allows lower credit scores and smaller down payments but charges mortgage insurance for the loan's life. Conventional loans drop PMI once you hit 20% equity.
Only if the complex is FHA-approved. Many Redondo Beach condo HOAs haven't completed the certification process, which limits your options to conventional or jumbo loans.
Expect 2-5% of the purchase price. On a $1.5M home, that's $30K-$75K covering appraisal, title, escrow, lender fees, and prepaid taxes and insurance.
Only if you're keeping the loan past the break-even point, usually 3-5 years. Rates vary by borrower profile and market conditions, so run the math first.
Yes, but you'll need a strong offer. VA loans require no down payment and ban seller-paid funding fees, which can make your bid less attractive than conventional offers.
The 2024 conforming loan limit is $806,500 for single-family homes in LA County. Anything above that requires a jumbo loan with stricter qualification standards.
Absolutely. DSCR loans qualify you based on rental income, not personal income. The property needs to generate enough rent to cover the mortgage payment.
HELOCs give you a revolving credit line with variable rates. Home equity loans provide a lump sum with a fixed rate and set repayment term.
Most lenders allow you to borrow up to 80-90% of your home's value minus what you owe. You need solid credit and verifiable income to qualify.
Yes. Foreign national loans don't require US credit or income documentation. You'll need 30-40% down and pay higher rates than domestic borrowers.
You pay only interest for a set period, then principal and interest after. These work for buyers expecting income increases or investors maximizing cash flow.
Jumbo loans typically require 6-12 months of mortgage payments in reserve. Conventional loans may waive reserves for strong borrowers with low debt ratios.
Yes, if you live in one unit. FHA finances 2-4 unit properties with 3.5% down, and rental income from other units can help you qualify.
Portfolio ARMs are adjustable-rate mortgages held by the lender, not sold to investors. They offer flexibility for complex income situations or non-warrantable condos.
ARMs start with a low fixed rate for 3-10 years, then adjust annually based on an index. They work best if you plan to sell or refinance before the first adjustment.
Yes. 1099 loans verify income through your 1099 forms instead of tax returns. This works well for contractors who write off significant business expenses.
Lenders calculate your income by dividing your liquid assets by the loan term. This works for retirees or buyers with substantial savings but minimal reported income.
Properties in FEMA flood zones require flood insurance. Coastal areas often fall into these zones, and your lender will order a flood certification during underwriting.
Sometimes. Fannie Mae and Freddie Mac offer appraisal waivers on strong conventional loans with significant down payments. Jumbo loans almost always require full appraisals.
Bridge loans let you buy before selling your current home. They carry higher rates and short terms, but solve timing problems in competitive markets.
Yes. Construction loans fund the land purchase and rebuild in phases. You'll need detailed plans, contractor bids, and 20-25% down to get started.
Pre-qualification is an estimate based on what you tell the lender. Pre-approval involves document verification and credit checks, carrying real weight with sellers.
Only for fix-and-flip investors or buyers needing ultra-fast closings. Hard money rates run 8-12% with short terms, making them expensive for traditional buyers.
FHA and VA loans are assumable with lender approval. You take over their rate and terms, which can save money if they locked in years ago at lower rates.
You can pay the difference in cash, renegotiate the price, or walk away if you have an appraisal contingency. Low appraisals are common in fast-rising coastal markets.
We shop 200+ wholesale lenders who compete for your business. Banks only offer their own products, while we match your profile to the lender offering the best terms.
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.