Santa Fe Springs Mortgage FAQs – Your Questions Answered by Local Brokers

Most purchase loans close in 21-30 days if paperwork flows smoothly. Cash-out refinances can stretch to 35 days because appraisals take longer.

FHA loans start at 580 credit. Conventional loans need 620 minimum, but 680+ gets better rates.

Yes, we use your 1099 forms instead of W-2s to prove income. Most lenders want 12-24 months of consistent 1099 earnings.

FHA requires 3.5% down. Conventional starts at 3% for first-time buyers, 5% for repeat buyers.

Yes, investor loans require 15-25% down and carry higher rates. DSCR loans work well if you're buying rental property here.

Lenders review 12-24 months of business or personal bank deposits. They calculate income from your average monthly deposits minus typical expense percentages.

Bring two years of tax returns, 60 days of bank statements, recent pay stubs, and photo ID. Self-employed borrowers need profit and loss statements too.

ITIN loans work for borrowers without Social Security numbers. You need 12 months of bank statements showing consistent deposits and 15-20% down.

FHA allows lower credit scores and 3.5% down but charges mortgage insurance for life on small down payments. Conventional drops PMI once you hit 20% equity.

Expect 2-3% of the loan amount for lender and title fees. On a $500K home, that's $10K-$15K out of pocket.

Only if you're keeping the loan past five years. Each point costs 1% upfront and typically cuts the rate by 0.25%.

DSCR loans qualify you based on rental income, not personal income. Investors buying multi-family or single-family rentals use these to avoid tax return headaches.

Yes, FHA and conventional loans allow gifted funds from family. You need a signed gift letter stating the money doesn't require repayment.

ARMs start with a fixed rate for 3, 5, 7, or 10 years, then adjust annually based on market indexes. They work if you're selling or refinancing before the adjustment period.

Jumbo loans cover amounts above $806,500 in Los Angeles County. They need stronger credit and bigger down payments but offer competitive rates for high-value properties.

Absolutely, and they're the best deal for veterans with 0% down and no PMI. You pay a funding fee unless you're disabled.

Yes, cash-out refinances let you borrow against equity. Expect to keep 20% equity in the home after closing.

Lenders divide your liquid assets by 360 months to calculate qualifying income. Retirees with stock portfolios but no W-2 income use these.

PMI costs 0.3-1.5% annually on conventional loans with less than 20% down. Request removal once you hit 20% equity through payments or appreciation.

Bridge loans cover your down payment before selling your current home. They're expensive short-term financing for buyers who need to close fast.

Yes, foreign national loans require 20-30% down and don't need U.S. credit history. We verify income from your home country.

HELOCs work like credit cards with variable rates you draw against. Home equity loans give you a lump sum with fixed rates.

Community mortgage programs offer down payment assistance and reduced fees. Requirements vary but typically need income limits and homebuyer education.

You pay only interest for 5-10 years, then principal kicks in. High earners expecting bonuses or equity from investments use these.

CPAs prepare a P&L showing your business income and expenses. Lenders use this instead of tax returns if you write off most earnings.

Construction loans fund both purchase and renovation costs. You draw funds in stages as work completes, then convert to permanent financing.

You'll pay PMI on conventional loans or MIP on FHA loans. Both add $100-$300 monthly but let you buy sooner.

Only for fix-and-flip investors or buyers with credit problems who need fast closings. Rates run 8-12% with huge fees.

FHA requires three years, conventional loans want seven years. Some portfolio lenders approve sooner if you've rebuilt credit.

Most conventional loans cap at 43-50% DTI. FHA stretches to 56% with strong credit and reserves.

Some lenders offer float-down locks for 30-60 days while you shop. You pay a fee but protect against rate spikes.

Yes, lenders require a paid policy effective on closing day. Shop early because quotes in Los Angeles County vary wildly.

Portfolio ARMs stay with one lender instead of selling to Fannie or Freddie. They offer flexibility for borrowers with complex income or credit issues.

Homeowners 62+ borrow against equity without monthly payments. The loan comes due when you sell, move, or pass away.

Yes, FHA covers up to four units if you live in one. You need 3.5% down and the property must meet minimum standards.

The lender shares in future appreciation instead of charging full market rates. You pay less monthly but split profits when you sell.

No, Santa Fe Springs doesn't qualify as rural. USDA loans only work in designated areas outside metro zones.

Rates shift daily based on bond markets. Lock your rate once you're in contract to avoid surprises before closing.

Most residential loans don't charge prepayment penalties. Commercial and some investor loans do, so check your terms.

Paid liens usually clear after 12 months. Unpaid liens must be resolved or included in your loan payoff before closing.