Walnut Mortgage FAQs: Expert Answers for Los Angeles County Homebuyers

Conventional loans require 3% down for first-time buyers, 5% otherwise. FHA accepts 3.5% down, while VA and USDA offer zero-down options if you qualify.

FHA approves borrowers at 580 credit scores. Conventional loans prefer 620 minimum, though better rates start at 680 or higher.

Most conventional and FHA loans close in 21-30 days. Jumbo loans or complex income documentation can add another week.

Get pre-approved with full document review. Sellers in competitive Walnut neighborhoods won't take offers from pre-qualified buyers seriously.

Bring two years of tax returns, two months of bank statements, and recent pay stubs. Self-employed borrowers need full business tax returns.

Jumbo territory starts above $806,500 in Los Angeles County. Many single-family homes in Walnut fall into jumbo range given local pricing.

FHA allows lower credit and smaller down payments but charges mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity.

VA loans offer zero down for qualifying veterans and service members. USDA loans work for zero down but don't apply in developed Walnut areas.

Lenders want total monthly debts below 43-50% of gross income. That includes your proposed mortgage, property taxes, insurance, and existing debts.

We use 12-24 months of business bank deposits instead of tax returns. This works well for business owners who write off significant expenses.

Rates vary by borrower profile and market conditions. Your credit score, loan-to-value ratio, and loan type all impact your final rate.

Points make sense if you're keeping the loan past five years. Calculate your breakeven point before paying upfront for rate reduction.

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

Sellers can contribute toward closing costs in most loan programs. Conventional loans allow up to 3% from sellers, FHA permits up to 6%.

Private mortgage insurance protects the lender when you put down less than 20%. Avoid it by putting 20% down or using a piggyback second mortgage.

DSCR loans qualify you based on the property's rental income, not your personal income. You need the rent to cover 75-80% of the full mortgage payment.

Yes, 1099 loans use your gross income from contractor statements without the deductions that reduce qualifying income on tax returns. We need 12-24 months of 1099 forms.

ARMs offer lower initial rates that adjust after a fixed period, typically 5, 7, or 10 years. They work if you're selling or refinancing before the first adjustment.

Veterans, active duty service members, and qualifying surviving spouses can use VA loans. You need a Certificate of Eligibility and sufficient remaining entitlement.

Home equity loans provide a lump sum at a fixed rate. HELOCs work like credit cards with variable rates and a draw period for accessing funds as needed.

Yes, ITIN loans work for tax-paying non-citizens who lack Social Security numbers. Expect higher down payment requirements, typically 15-20% minimum.

Portfolio ARMs are held by the lender instead of sold to Fannie or Freddie. They offer flexible underwriting for borrowers with complex income or credit situations.

Construction loans fund the build in stages as work completes. They typically convert to permanent financing once construction finishes and you get a certificate of occupancy.

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

Asset depletion loans qualify you by dividing your total liquid assets by 360 months to create a monthly income figure. This works for retirees with substantial savings but limited income.

Nearly all purchase loans require a full appraisal. Some refinances qualify for appraisal waivers if Fannie or Freddie has strong automated valuation confidence.

You can renegotiate the price, bring extra cash to close the gap, or cancel if you have an appraisal contingency. Lenders only finance up to appraised value.

Yes, second home loans require 10% down minimum and higher credit scores than primary residences. The property can't be rented out under second home classification.

Bridge loans provide short-term financing when you're buying before selling your current home. They're expensive but solve timing gaps between purchases.

Hard money lenders focus on property value over credit and income, fund in days not weeks, and charge significantly higher rates. Use them for fix-and-flip projects or urgent purchases.

You'll need to refinance the loan in your name only. The current lender won't remove a borrower from the existing note without full refinancing.

Recent bankruptcy, foreclosure, or short sale create waiting periods of 2-7 years depending on loan type. We can outline specific timelines based on your situation.

Lock if you're satisfied with the rate and worried about increases. Float if you think rates will drop and you can tolerate the risk of upward movement.

Brokers access 200+ lenders versus one bank's products. We find better rates and match you to specialized programs banks don't offer retail customers.

Most documentation covers two years of tax returns and employment. Recent large deposits need explanation, and credit reports show seven years of history.

Yes, but lenders count 0.5-1% of your student loan balance as monthly debt for qualification. Income-driven repayment plans may lower the calculated payment.