San Dimas Mortgage FAQs – Your Questions Answered by Local Brokers

Most purchase loans close in 21-30 days with complete documentation. Missing paperwork or appraisal delays can push timelines to 35-40 days.

Conventional loans typically require 620 minimum. FHA allows scores as low as 580 with 3.5% down, sometimes 500 with 10% down.

Minimum is 3% on conventional loans, 3.5% on FHA. Putting down 20% avoids PMI and strengthens your offer in competitive situations.

FHA allows lower credit scores and down payments but requires mortgage insurance for the loan's life. Conventional drops PMI at 20% equity and often has better rates above 680 credit.

Yes, through bank statement loans or 1099 programs. We use 12-24 months of deposits instead of tax returns to calculate income.

No, we broker investor loans and DSCR programs for out-of-state buyers. Foreign national loans work for non-US citizens purchasing rental properties.

Expect 2-5% of the purchase price covering lender fees, title, escrow, and inspections. Transfer taxes in Los Angeles County run $1.10 per $1,000 of sale price.

Only if you're keeping the loan 5+ years. Each point costs 1% of the loan amount and typically drops your rate 0.25%.

Private mortgage insurance protects the lender when you put down less than 20%. Avoid it with 20% down or piggyback loans splitting the financing.

Yes, if you're military or a veteran with eligibility. VA loans require no down payment and no PMI, making them powerful for qualified buyers.

Two years tax returns, 60 days pay stubs, two months bank statements, and photo ID. Self-employed borrowers substitute business bank statements or P&L statements.

We average 12 or 24 months of deposits to calculate income. This works for business owners who write off most revenue on tax returns.

Debt Service Coverage Ratio loans qualify based on rental income, not your personal finances. Investors use these to scale portfolios without income limits.

Rates vary by borrower profile and market conditions, not by city. Your credit score, down payment, and loan type determine your rate.

Jumbo loans start above $806,500 in 2025 for single-family homes. These require stronger credit and larger down payments than conforming loans.

Yes, ITIN loans work for taxpayers without Social Security numbers. Expect 15-25% down and slightly higher rates than conventional programs.

ARMs start with lower rates than 30-year fixed loans. They make sense if you're selling or refinancing within 5-7 years.

Bridge loans let you buy before selling your current home. We secure short-term financing against your existing equity, then refinance after the sale.

Yes, through cash-out refinancing or a HELOC. HELOCs work as revolving credit lines, while cash-out refis replace your first mortgage.

We divide your liquid assets by 360 months to create qualifying income. Retirees or high-net-worth buyers with low tax returns use this program.

Only if you're in a FEMA flood zone, which is rare here. Your lender orders a flood certificate during underwriting to verify requirements.

Lenders approve debt-to-income ratios up to 50% on some programs. A good rule: keep total housing costs under 30% of gross monthly income.

Pre-qualification is an estimate based on what you tell us. Pre-approval involves document review and credit checks, carrying real weight with sellers.

Yes, through FHA 203k or conventional renovation loans that roll repair costs into financing. Hard money loans work for quick purchases before refinancing.

You can renegotiate the price, bring extra cash to close, or cancel if you have an appraisal contingency. Low appraisals happen in hot markets when comps lag sales.

Underwriters verify every document, check credit, review the appraisal, and confirm employment. They issue conditions requiring additional paperwork before final approval.

Most lenders lock rates once you're in contract. Some offer float-down options if rates drop before closing, usually for a fee.

Below 43% qualifies for most conventional loans. FHA and some portfolio programs allow up to 50% with strong credit and reserves.

Not always, but reserves help. Jumbo loans often require 6-12 months of mortgage payments in savings after closing.

We fund in draws as construction progresses, converting to permanent financing when the home is complete. You'll need detailed plans and a licensed contractor.

Adjustable rate loans held by the lender instead of sold to Fannie or Freddie. These offer flexibility on credit, income documentation, and property types.

VA loans require zero down for eligible veterans. USDA loans also offer zero down, but San Dimas doesn't qualify as a rural area under their maps.

Lenders verify employment days before funding. Job loss typically kills the loan unless you have another income source that qualifies.

You pay only interest for 5-10 years, then principal and interest after. These suit buyers expecting income growth or planning to sell before the adjustment.

These offer down payment assistance or reduced rates for first-time buyers, often tied to income limits. Availability varies by lender and funding cycles.

Refinancing makes sense if you drop your rate 0.75% or more and stay in the home long enough to recover closing costs. We calculate break-even timelines for every scenario.

Yes, through investor loans requiring 15-25% down. DSCR loans qualify based on rental income, bypassing personal income and employment verification.

We shop 200+ lenders instead of offering one bank's products. That competition gets you better rates and matches your situation to the right loan type.

No, location within the city doesn't affect rates. Property condition and loan amount matter more than the specific street address.

Recent bankruptcies, foreclosures under three years old, and unpaid tax liens block most programs. Collections under $5,000 often don't need payoff before closing.