Whittier Mortgage FAQs: Get Answers from Experienced California Brokers

Most Whittier purchases close in 30-45 days with conventional or FHA loans. Cash-out refinances can take slightly longer due to appraisal timelines in Los Angeles County.

FHA loans approve at 580, but 620+ gets better rates. Conventional loans typically require 620 minimum, though some portfolio lenders go lower.

Yes. Conventional 97 loans allow 3% down for qualified first-time buyers. FHA requires 3.5% down and works for repeat buyers too.

Standard loans require two years of W-2s, recent pay stubs, two months of bank statements, and tax returns. Self-employed borrowers need two years of business tax returns.

Yes. Whittier property taxes run roughly 1.1-1.2% of assessed value and get included in your monthly payment through escrow.

First-time buyers often put down 3-5% with FHA or conventional loans. Repeat buyers typically do 10-20% to avoid PMI and strengthen offers.

Absolutely. Bank statement loans work well for self-employed Whittier buyers who write off heavy business expenses. We use 12 or 24 months of deposits to calculate income.

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

FHA works better with lower credit or smaller down payments. Conventional avoids upfront mortgage insurance and drops PMI easier once you hit 20% equity.

Expect 2-5% of the purchase price. This covers lender fees, title insurance, escrow, and LA County transfer taxes.

Yes. FHA loans cover 2-4 unit properties if you live in one unit. You can use projected rental income to qualify.

PMI applies when you put down less than 20%. Rates vary from 0.3-1.5% annually based on credit score and down payment amount.

DSCR loans qualify based on rental income, not personal income. Perfect for Whittier investors buying income properties without tax return verification.

Yes. We offer 1099 loans, profit & loss loans, and bank statement loans for non-traditional income. Each has different documentation requirements.

Asset depletion divides your liquid assets by 360 months to calculate qualifying income. Works for retirees or buyers with substantial savings but limited monthly income.

Points are optional. One point equals 1% of the loan amount and typically lowers your rate by 0.25%. Makes sense if you plan to keep the loan 5+ years.

Yes. Foreign national loans require 20-30% down and don't need U.S. credit or tax returns. Rates run higher than conventional loans.

Jumbo loans exceed conforming limits—currently $806,500 in Los Angeles County. They typically require stronger credit, lower debt ratios, and larger down payments.

Lenders average your last two years of net income from tax returns. Heavy write-offs reduce qualifying income, which is why bank statement loans often work better.

Yes. FHA and conventional loans allow gift funds from family members. You need a signed gift letter stating no repayment is expected.

Conventional loans typically cap at 50% DTI. FHA can stretch to 56% with strong credit and compensating factors like cash reserves.

Whittier buyers access LA County programs offering down payment assistance and lower rates. These often combine with FHA or conventional financing.

You pay only interest for 5-10 years, then payments increase when principal amortization starts. Useful for buyers expecting income growth or planning to sell.

Pre-qualified is an estimate based on what you tell us. Pre-approved means we've verified income, assets, and credit—much stronger for making offers.

Yes. FHA 203k loans fund purchase plus repairs in one loan. Conventional renovation loans also work but require larger down payments.

Bridge loans let you buy before selling your current home. You avoid contingent offers and can compete better in competitive neighborhoods.

ITIN loans serve borrowers without Social Security numbers who file taxes with an ITIN. They require larger down payments and use alternative credit verification.

Lock when you're in contract and have an estimated closing date. Locks typically run 30-60 days and protect against rate increases.

HELOCs let you borrow against home equity as needed during a draw period. You pay interest only on what you use, making them flexible for ongoing expenses.

Yes. VA loans offer zero down payment and no PMI for qualified veterans and service members. They're often the best deal if you're eligible.

You can renegotiate price, bring extra cash to close, or cancel if you have an appraisal contingency. In competitive markets, sellers rarely lower the price.

ARMs start with lower rates than fixed mortgages but adjust after 3, 5, 7, or 10 years. They work if you plan to sell or refinance before adjustment.

Yes. Cash-out refinances let you borrow against equity for any purpose. Conventional loans allow up to 80% LTV, though rates vary by borrower profile and market conditions.

Portfolio ARMs offer flexible qualifying for non-traditional borrowers. Lenders keep them in-house rather than selling to Fannie or Freddie, so they set their own rules.

Yes. Lenders include HOA fees in your debt-to-income ratio. High HOA payments reduce how much house you can afford.

Investment properties require 6+ months of reserves. Primary homes need less, but having 2-3 months strengthens your application, especially with tighter debt ratios.