Torrance Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans start at 580, conventional at 620. Jumbo loans for higher-priced Torrance properties typically require 700+ to get competitive rates.

FHA requires 3.5%, conventional 3-5% for owner-occupied. Jumbo loans near the beach usually need 10-20% depending on the lender and loan amount.

VA loans require zero down payment. You still pay closing costs and the VA funding fee, but no money goes toward the purchase price upfront.

Very common, especially near the coast and in Hollywood Riviera. Properties above conforming limits need jumbo financing with stricter credit and reserve requirements.

Yes, bank statement loans work for 1099 contractors and business owners who can't show traditional W-2 income. We calculate income from 12-24 months of deposits.

Standard deals need two years of tax returns, 60 days of pay stubs, two months of bank statements, and photo ID. Self-employed borrowers provide additional business documentation.

Most conventional and FHA loans close in 21-30 days. Complex scenarios like new construction or non-QM loans can stretch to 45 days.

Most Torrance properties don't require flood insurance since they're outside FEMA flood zones. Lenders order flood certifications during underwriting to confirm.

Expect 2-5% of the loan amount for lender fees, title, escrow, and appraisal. On a $800K loan, that's $16K-$40K depending on loan type and rate buydowns.

Put down 20% or more to skip PMI entirely. Below that, you pay private mortgage insurance until you hit 20% equity through payments or appreciation.

FHA allows lower credit scores and smaller down payments but charges upfront and monthly mortgage insurance. Conventional offers better rates for strong credit and bigger down payments.

No, rates depend on your credit, loan type, and market conditions—not your zip code. Rates vary by borrower profile and market conditions, not property location.

Not on conventional financing—investment properties require 15-25% down. DSCR loans offer investor-friendly options but expect higher rates than owner-occupied deals.

DSCR loans qualify you based on rental income instead of personal income. Perfect for Torrance investors with multiple properties or complex tax returns.

ARMs offer lower initial rates fixed for 3, 5, 7, or 10 years, then adjust annually. They make sense if you plan to sell or refinance before the adjustment period.

Yes, foreign national loans allow non-US citizens to purchase Torrance real estate. Expect 30-40% down and higher rates than conventional financing.

15-year mortgages carry lower rates and save massive interest long-term but require higher monthly payments. Most Torrance buyers choose 30-year for payment flexibility.

ITIN loans allow borrowers with Individual Taxpayer Identification Numbers to finance Torrance homes. You need tax history, down payment, and steady income documentation.

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

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

Most jumbo lenders want 700+ for competitive rates. Below 680, your options shrink and rates climb significantly on larger loan amounts.

Conforming limits in Los Angeles County change yearly. Above those limits, you need jumbo financing with stricter requirements and different rate structures.

Only if the complex is FHA-approved, which many aren't. We check the HOA's approval status during pre-approval to avoid surprises later.

Rate locks guarantee your rate for 30-60 days while you close. Lock when you're in contract and rates feel favorable—locks aren't free if you extend them.

No income limits exist for VA loans. You must prove enough income to cover the mortgage, debts, and living expenses through standard debt-to-income calculations.

Brokers shop 200+ lenders to find better rates and programs than single-bank loan officers. We match your scenario to the right lender instead of forcing one product.

Yes, once you hit 20% equity through payments or appreciation. Refinancing into a new loan removes PMI but resets your loan term and costs closing fees.

Asset depletion loans qualify you using investment accounts instead of employment income. Common for retirees with stock portfolios buying in Torrance.

Lenders limit total monthly debts to 43-50% of gross income depending on loan type. Car payments, student loans, and credit cards all count against you.

FHA 203k renovation loans let you finance purchase and repairs in one mortgage. The property must meet minimum safety standards at closing even for fixer loans.

You renegotiate the price, bring extra cash to close, or walk away if you have an appraisal contingency. Low appraisals kill deals unless buyers or sellers bend.

Yes, construction-to-permanent loans cover land purchase and build costs. They convert to standard mortgages once construction completes and the home appraises.

HELOCs work like credit cards with variable rates you draw from as needed. Home equity loans give you a lump sum with fixed rates and set repayment terms.

Yes, you can withdraw or borrow from 401k and IRA accounts for down payments. Expect taxes and penalties on early withdrawals unless it's a first-time purchase exception.

Community mortgages offer flexible underwriting for borrowers who don't fit standard boxes. They consider alternative credit and non-traditional income sources.

Bridge loans let you tap equity in your current home to buy a new Torrance property before closing your sale. They're short-term with higher rates and fees.

Yes, homeowners 62+ can convert equity into cash without monthly payments. The loan gets repaid when you sell, move out, or pass away.

P&L loans use business financial statements instead of tax returns to calculate income. CPAs prepare them and underwriters verify they match bank deposits.

FHA allows financing two years after bankruptcy discharge. Conventional loans require four years. Some non-QM lenders go shorter with higher rates and down payments.

Points let you buy down your rate by prepaying interest—one point equals 1% of the loan amount. They make sense if you keep the loan long enough to recoup the cost.