San Fernando Mortgage FAQs – Your Questions Answered by Local Experts

FHA loans require 3.5% down, conventional loans allow 3% for first-time buyers. VA and USDA loans offer 0% down for qualified borrowers.

Conventional loans typically need 620 or higher. FHA accepts scores as low as 580 with 3.5% down, or 500 with 10% down.

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

Most conventional and FHA loans close in 21-30 days. Bridge loans and hard money can fund in 7-14 days if speed matters.

W-2 earners need pay stubs, tax returns, and bank statements. Self-employed borrowers can use bank statements or 1099s depending on the loan program.

Standard inspections include property, pest, and roof. Some lenders require earthquake retrofitting documentation for older homes in the area.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life on most loans. Conventional drops PMI at 20% equity.

No. San Fernando is within Los Angeles city limits and doesn't qualify as a USDA rural eligible area.

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

No. FHA loans require owner occupancy for at least one year. Use conventional or DSCR loans for rental properties.

DSCR loans qualify you based on rental income, not personal income. Investors buying San Fernando rentals use these to avoid tax return requirements.

ARMs start with a fixed rate for 3, 5, 7, or 10 years, then adjust annually. They work best if you plan to sell or refinance before adjustments begin.

Yes. ITIN loans let foreign nationals and non-resident buyers purchase San Fernando homes without Social Security numbers.

Lenders cap debt-to-income ratios at 43-50% depending on the program. Your total monthly debts including the mortgage shouldn't exceed that percentage.

Only if you keep the loan long enough to recover the upfront cost. Each point costs 1% of the loan and typically drops your rate 0.25%.

You qualify using deposits instead of tax returns. Self-employed borrowers who write off income avoid being penalized for smart tax strategies.

No. VA loans don't have income caps, but you must prove enough income to cover the mortgage and debts comfortably.

Conventional loans drop PMI automatically at 78% loan-to-value or by request at 80%. FHA loans require refinancing to remove mortgage insurance.

Bridge loans let you buy before selling your current home. They're short-term financing until your existing property closes and you refinance.

Lenders divide your liquid assets by 360 months to calculate qualifying income. Retirees with investment accounts use this instead of employment income.

Not if repairs exceed basic cosmetic work. Construction loans or FHA 203(k) loans fund both purchase and renovation costs together.

HELOCs work like credit cards with variable rates and draw periods. Home equity loans provide lump sums with fixed rates and payments.

Most jumbo lenders want 10-20% down depending on credit strength. Expect stricter qualification and larger cash reserves than conforming loans.

Same industry moves work fine if employment is confirmed. Career changes require 30-day pay stubs or waiting until you're past probation.

You pay only interest for 5-10 years, then principal and interest afterward. Investors and high earners use these for lower initial payments.

Portfolio lenders hold these loans instead of selling them. They offer more flexibility on credit, income, and property condition than agency ARMs.

Yes, and you should. Pre-approval shows sellers you're serious and gives you accurate budget numbers before making offers.

You can negotiate the price down, bring extra cash, or cancel if you have an appraisal contingency. Some loans allow appraisal waivers.

Yes for homeowners 62 and older. You borrow against home equity without monthly payments until you move or pass away.

These loans let non-US citizens buy property in San Fernando without US credit or residency. Expect 20-30% down and higher rates.

Hard money is short-term financing based on property value, not income. Investors use these for quick closings or properties needing major work.

Only on refinances. Purchase loans require you to pay costs separately or negotiate seller credits to cover them.

These programs offer down payment assistance or flexible underwriting for specific communities or income levels. Availability varies by lender and area.

Most areas don't require it, but check FEMA maps. Lenders mandate flood insurance if your property sits in a designated flood zone.

California's Proposition 13 caps base taxes at 1% of purchase price. Add local assessments and expect 1.1-1.3% annually in Los Angeles County.