South Gate Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans accept 580 scores with 3.5% down. Conventional loans typically require 620 minimum, though some lenders go lower with strong compensating factors.

FHA requires 3.5% down, conventional as low as 3%. VA and USDA offer zero down for qualified borrowers.

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

DSCR loans approve based on rental income, not personal earnings. The property must generate enough rent to cover the mortgage payment.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers need business bank statements or P&L statements depending on the loan program.

Pre-approval takes 1-2 days with complete documents. Full approval typically runs 21-30 days from accepted offer to closing.

Expect 2-5% of the purchase price for closing costs. This includes lender fees, title insurance, escrow, and prepaid items like property taxes and insurance.

ITIN loans let you qualify using an Individual Taxpayer Identification Number. You'll need larger down payments, typically 15-20%.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity and often have better rates for strong borrowers.

Active military, veterans, and eligible spouses qualify with no down payment required. VA loans don't charge PMI and typically offer the lowest rates available.

FHA loans require just 3.5% down with 580 credit. Conventional loans offer 3% down programs, and VA/USDA provide zero-down options for qualified buyers.

Yes, bank statement loans work for owner-occupied homes. Lenders analyze 12-24 months of deposits to calculate income instead of requiring tax returns.

Bridge loans use your current home's equity for a down payment on the new property. You pay both mortgages temporarily until your old home sells.

Private mortgage insurance protects lenders when you put down less than 20%. On conventional loans, it drops automatically at 22% equity or by request at 20%.

Rates depend on your borrower profile, not location. Your credit score, down payment, and loan type matter more than which LA County city you're buying in.

ARMs offer lower initial rates that adjust after a fixed period. They make sense if you plan to sell or refinance within 5-7 years.

Foreign national loans don't require US credit or residency. Expect 20-30% down payments and higher rates than traditional programs.

Recent bankruptcy or foreclosure creates waiting periods. Active collections don't always block approval, but unpaid tax liens typically do until resolved.

Most programs allow 43-50% DTI, meaning monthly debts can't exceed that percentage of gross income. Some portfolio loans accept higher ratios with strong credit.

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

FHA 203k and conventional renovation loans finance purchase plus repairs in one mortgage. Hard money works for investors doing quick flips.

Points are prepaid interest that lower your rate. Pay points if you're keeping the loan long enough to recoup the upfront cost through monthly savings.

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

Debt Service Coverage Ratio loans approve investors based on rental income, not personal earnings. The property's rent must cover 1.0-1.25 times the mortgage payment.

Staying in the same industry usually works fine. Switching careers or starting new jobs creates complications unless you're already closed before changing.

Asset depletion qualifies you using investment accounts instead of income. Lenders divide total assets by 360 months to calculate qualifying income.

Investment properties require 6 months reserves. Primary residences sometimes need reserves with low down payments or for jumbo loans.

Buyers typically deposit 1-3% as earnest money with the offer. This amount credits toward your down payment at closing if the deal goes through.

You can renegotiate price, bring extra cash to close, or walk away if you have an appraisal contingency. Low appraisals are rare in competitive markets.

One or two late payments over two years usually won't block approval. Recent 30-day lates in the last 12 months hurt more than older issues.

Get pre-approved with full documentation upfront. Cash equivalent programs like hard money can close in 7-10 days for investors.

Community mortgage programs sometimes offer down payment assistance or rate discounts for teachers, healthcare workers, and first responders. Requirements vary by lender.

Los Angeles County taxes run approximately 1.25% of purchase price annually. Lenders escrow monthly portions with your payment unless you put 20% down.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified your income, assets, and credit through documentation.

Most loan programs accept gift funds from family members. You'll need a gift letter stating the money doesn't require repayment.

Homeowners insurance is required before closing. Lenders escrow annual premiums and pay directly to ensure continuous coverage.

Mortgage inquiries within 45 days count as one hard pull. Shopping rates actually helps you find better terms without damaging your score.

We access 200+ wholesale lenders while banks offer only their own products. This means better rates and more loan options for your specific situation.