Loading
San Gabriel Mortgage FAQ
San Gabriel buyers ask great questions. We've answered the most common ones below, from loan types to local market conditions.
These FAQs cover everything from credit requirements to closing timelines. We see these scenarios daily across Los Angeles County deals.
Whether you're buying near Mission Playhouse or closer to San Gabriel Square, the loan fundamentals stay the same. What changes is which program fits your situation best.
Conventional loans typically require 620 minimum, FHA accepts 580 with 3.5% down. Higher scores unlock better rates and loan options.
FHA loans allow 3.5% down, conventional loans start at 3%. Putting down 20% eliminates PMI and strengthens your offer in competitive markets.
Standard W-2 loans require two years of tax returns, two months of bank statements, and recent pay stubs. Self-employed borrowers need additional business documentation.
Most purchase loans close in 21-30 days. Cash-out refinances can take 30-45 days depending on appraisal timing.
Pre-qualification is an estimate based on what you tell us. Pre-approval involves document review and credit pulls, giving sellers confidence you can close.
Absolutely. Bank statement loans and P&L statement loans work well for 1099 contractors and business owners who can't show traditional W-2 income.
Expect 2-5% of the purchase price. This includes lender fees, title insurance, escrow fees, and prepaid property taxes.
Fixed rates lock your payment for 15-30 years. ARMs offer lower initial rates but adjust after 5, 7, or 10 years—best if you plan to move or refinance.
Private mortgage insurance protects lenders when you put down less than 20%. Avoid it by making a larger down payment or using piggyback loans.
Yes. Most loan programs allow gifted funds from immediate family members with proper documentation and a gift letter.
Jumbo loans exceed conforming limits, currently $806,500 in Los Angeles County. They typically require higher credit scores and larger down payments.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and loan type all impact your final rate.
Brokers access 200+ lenders instead of one bank's products. We shop rates and programs to find the best fit for your situation.
Yes. FHA loans allow up to 4 units with 3.5% down if you live in one unit. Investor loans work for properties you won't occupy.
Debt Service Coverage Ratio loans qualify based on rental income, not personal income. Perfect for real estate investors buying rental properties.
Foreign national loans and ITIN loans serve non-citizens. Requirements vary but typically need larger down payments and asset verification.
FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life on some loans. Conventional offers better rates for strong borrowers.
Asset depletion loans let you qualify using IRA or 401(k) balances as income. You don't withdraw funds, we calculate qualifying income from the total.
Points let you buy down your interest rate, costing 1% of the loan amount per point. Worth it if you'll keep the loan 5+ years.
Bridge loans let you buy before selling your current home. Short-term financing that gets paid off when your old property closes.
Recent bankruptcy, foreclosure, or tax liens create waiting periods. Collections and late payments hurt but don't always disqualify you.
Cash-out refinances let you borrow against home equity. Most lenders allow up to 80% loan-to-value for primary residences in San Gabriel.
You pay only interest for 5-10 years, then the loan fully amortizes. Useful for borrowers expecting income growth or planning to sell soon.
Los Angeles County taxes get escrowed into monthly payments. Expect roughly 1.25% of assessed value annually, split across 12 months.
One late payment damages your credit and incurs fees. Three missed payments risk foreclosure proceedings—contact your lender immediately if struggling.
Construction loans and renovation loans finance purchase plus repairs in one loan. FHA 203(k) loans work well for primary residences needing work.
DTI compares monthly debt payments to gross income. Most loans require 43-50% DTI, though some portfolio programs go higher.
Yes. Lenders require proof of insurance before funding. Shop policies early since California insurance costs vary significantly by carrier.
Rate locks guarantee your interest rate for 30-60 days while you close. Lock when you're happy with the rate and ready to commit.
VA and FHA loans may be assumable with lender approval. Rare in San Gabriel's market but worth asking if the seller has a low rate.
Portfolio ARMs are held by lenders, not sold to investors. They offer flexible underwriting for borrowers who don't fit standard loan boxes.
Active military, veterans, and eligible spouses qualify with a Certificate of Eligibility. VA loans require no down payment and no monthly PMI.
San Gabriel offers strong schools and diverse neighborhoods. Mix of single-family homes and condos appeals to first-time buyers and investors alike.
Absolutely. Sellers in competitive Los Angeles County markets rarely consider offers without solid pre-approval letters from reputable lenders.
You'll sign final loan documents, transfer funds, and receive keys. The process takes 1-2 hours at the title company or escrow office.
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.