Santa Clarita Mortgage FAQs — Expert Answers from Local Loan Brokers

FHA loans allow 580 credit scores with 3.5% down, but most conventional loans need 620 minimum. Scores below 640 face higher rates and tougher approval odds.

FHA requires 3.5% down, conventional allows 3%, and VA/USDA require zero. Jumbo loans typically need 10-20% depending on credit and loan amount.

Yes — lenders count HOA dues as part of your debt-to-income ratio. High HOA fees in Valencia master plans can reduce how much home you qualify for.

Bank statement loans, 1099 loans, and profit & loss statement loans skip tax returns. We use 12-24 months of deposits to prove income instead.

DSCR loans approve based on rental income, not your tax returns. Investor loans and portfolio ARMs also work well for rental properties here.

FHA allows lower credit and smaller down payments but charges mortgage insurance for life on most loans. Conventional loans drop PMI at 20% equity and cost less long-term.

Most purchases close in 30-45 days. Cash-out refinances take 30-40 days, rate-and-term refinances often close in 21-30 days.

W-2 buyers need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers may need profit & loss statements or just bank statements depending on loan type.

Yes — conforming limits are $806,500 in 2025. Many Santa Clarita homes exceed that, especially in Valencia and newer developments.

Expect 2-5% of the loan amount. That includes lender fees, title insurance, escrow, appraisal, and recording fees in Los Angeles County.

Yes — VA loans require zero down payment and no mortgage insurance. They work well here for eligible veterans and active-duty service members.

Only if you put down less than 20%. PMI costs 0.3-1.5% of the loan amount annually and drops off once you hit 20% equity.

DSCR loans qualify you based on the property's rental income, not personal income. They're ideal for investors buying Santa Clarita rentals without showing tax returns.

Yes — FHA 203(k) loans and conventional renovation loans fund both purchase and repairs. Hard money loans work for quick closings on distressed properties.

Brokers shop rates across 200+ lenders instead of offering one bank's programs. We match your profile to lenders who specialize in your loan type and property.

Most lenders cap DTI at 43-50% of gross monthly income. Santa Clarita HOA fees and property taxes count toward that limit, reducing buying power.

ARMs offer lower initial rates than fixed loans. They make sense if you plan to sell or refinance within 5-7 years, common for buyers upgrading within Santa Clarita.

Bank statement loans approve self-employed buyers using 12-24 months of deposits instead of tax returns. We calculate income from average monthly deposits.

Yes on most loans — FHA, VA, and conventional allow gifted funds from family. Lenders require a gift letter stating the money doesn't need repayment.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit — it carries weight with sellers.

Most refinances require appraisals to confirm property value. Some streamline programs waive appraisals if you're lowering your rate on an existing loan.

You pay only interest for 5-10 years, then principal and interest. They lower initial payments but don't build equity during the interest-only period.

Most jumbo lenders want 680-700 minimum credit scores. Loan amounts above $1.5 million often require 720+ and larger down payments.

Yes — foreign national loans don't require U.S. credit or Social Security numbers. They typically need 20-30% down and charge higher rates.

ITIN loans serve borrowers without Social Security numbers who file taxes with an ITIN. Credit, income, and down payment requirements vary by lender.

Each point costs 1% of the loan and typically drops your rate 0.25%. Points make sense if you'll keep the loan long enough to recoup the upfront cost.

Bridge loans let you buy a new home before selling your current one. They're short-term financing secured by your existing property's equity.

Condos and townhomes require lender approval of the HOA. Investment properties need higher down payments and face stricter qualification than primary residences.

On refinances, yes if you have enough equity. On purchases, you can't finance closing costs — only ask the seller to cover them as a credit.

Asset depletion loans qualify you based on savings and investments, not income. Lenders divide assets by the loan term to calculate qualifying income.

Locks guarantee your interest rate for 15-60 days while your loan processes. Longer locks cost more but protect against rate increases during closing.

You can renegotiate price, bring extra cash, or cancel under your appraisal contingency. Low appraisals are rare in stable Santa Clarita neighborhoods but happen.

No — USDA loans require rural locations. Santa Clarita doesn't qualify, but VA and FHA loans offer similar low down payment options here.

Portfolio ARMs are adjustable loans held by the lender instead of sold to Fannie or Freddie. They allow more flexibility on credit, income documentation, and property type.

Construction loans fund land purchase and building costs, then convert to permanent mortgages. They require detailed plans, builder approval, and larger down payments than standard loans.

HELOCs let you borrow against equity as needed with variable rates. They work well for ongoing expenses like renovations or college tuition in Santa Clarita.

FHA and VA loans are assumable if the lender approves. You take over their rate and terms but must qualify and cover the equity difference in cash.

Established single-family areas in Valencia, Saugus, and Canyon Country get standard approvals. Newer master plans need FHA-approved HOAs for government-backed loans.

It depends on price, debts, and loan type. Most lenders want housing costs under 28-31% of gross income and total debts under 43-50%.

Yes — conventional and VA loans usually offer the lowest rates. Jumbo, bank statement, and investor loans charge higher rates due to increased lender risk. Rates vary by borrower profile and market conditions.