South El Monte Mortgage FAQs — Your Questions Answered by Local Brokers

FHA loans approve at 580, conventional at 620. Lower scores qualify with larger down payments or alternative programs like bank statement loans.

FHA requires 3.5%, conventional 3-5%, jumbo typically 10-20%. More down means better rates and lower monthly payments.

Bank statement loans, 1099 loans, and profit & loss statement loans work when tax returns show low income. We use 12-24 months of deposits to prove income.

Yes, ITIN loans let foreign nationals and non-residents buy property. Expect 15-25% down and slightly higher rates than conventional loans.

Most purchase loans close in 25-35 days. Cash-out refinances take 30-40 days because appraisals and title work take longer.

W-2 borrowers need two years of tax returns, recent pay stubs, and bank statements. Self-employed need additional business documentation depending on loan type.

FHA costs less upfront but charges lifetime mortgage insurance. Conventional drops PMI at 20% equity and offers better rates above 680 credit.

Expect 2-5% of the purchase price for lender fees, title, escrow, and prepaid items. Rates vary by borrower profile and market conditions.

FHA always requires it. Conventional requires PMI below 20% down, which drops automatically at 78% loan-to-value or by request at 80%.

DSCR loans qualify investors based on rental income, not personal income. They work for buyers with multiple properties or complex tax returns.

Yes, VA loans require no down payment and no monthly mortgage insurance. You need qualifying military service and a certificate of eligibility.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we verified income, assets, and credit—sellers take it seriously.

ARMs offer lower initial rates that adjust after a fixed period. A 5/1 ARM stays fixed for five years, then adjusts annually based on market indexes.

Rates vary by borrower profile and market conditions. Credit score, loan amount, down payment, and property type all affect your rate.

Points make sense if you'll keep the loan 5+ years. One point costs 1% of the loan amount and typically reduces your rate 0.25%.

Jumbo loans exceed conforming limits, currently $766,550 in Los Angeles County. They require stronger credit and larger reserves than conventional loans.

FHA allows financing two years after bankruptcy, three years after foreclosure. Conventional requires four and seven years respectively with clean credit since.

Conventional investor loans require 15-25% down depending on credit and reserves. DSCR loans start at 20% for single properties, 25% for multiple.

We average 12 or 24 months of business deposits to calculate income. This works for self-employed borrowers who write off most income.

Conventional loans max at 50% DTI with strong credit and reserves. FHA stretches to 56.9% with compensating factors like high credit scores.

FHA 203(k) and conventional renovation loans finance purchase plus repairs in one loan. The property must meet minimum safety standards to close.

Bridge loans let you buy before selling your current home. Expect higher rates and 6-12 month terms until your existing property closes.

It depends on the purchase price and your debts. Most programs want housing costs below 28-31% of gross income, total debts below 43-50%.

We divide your liquid assets by 360 months to create qualifying income. This works for retirees or buyers with wealth but limited W-2 income.

Conventional requires 2-6 months of reserves for investment properties. Primary residences need reserves only with weak credit or high DTI ratios.

Yes, HELOCs work as second mortgages or standalone products on paid-off homes. Expect combined loan-to-value limits around 80-90% depending on credit.

HELOCs offer revolving credit with variable rates. Home equity loans provide lump sums with fixed rates and payments over 5-30 years.

Lenders escrow property taxes and insurance into monthly payments. Los Angeles County assesses around 1.25% of purchase price annually, divided into twelve payments.

Hard money loans fund fast for fix-and-flip projects or borrowers who can't qualify traditionally. Expect 8-12% rates and 6-24 month terms.

Refinancing makes sense when you can drop your rate 0.75% or more, or eliminate PMI. Closing costs typically break even within 18-36 months.

Request removal at 20% equity with conventional loans. You'll need a current appraisal and on-time payment history for the previous 12 months.

One late payment won't trigger foreclosure but damages credit and incurs fees. After 90 days, lenders issue default notices and foreclosure timelines begin.

We shop 200+ wholesale lenders that don't work directly with consumers. That competition delivers better rates and programs than single-bank retail channels.

South El Monte offers more affordable entry points than neighboring San Gabriel Valley cities. You get Los Angeles County location without premium pricing.

Yes, foreign national loans work with 25-40% down. You don't need U.S. credit history or Social Security numbers—passport and visa suffice.