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Chowchilla Mortgage FAQ
Chowchilla buyers have different needs than Central Valley metros. You're looking at rural properties, agricultural land, or established neighborhoods where financing works differently.
We broker loans across 200+ lenders to find programs that fit Madera County properties. That means more options for unique situations than you'd get from a single bank.
These FAQs cover what we hear most from Chowchilla clients. Real questions about qualifying, timing, and costs in this market.
FHA loans start at 580, conventional at 620. Lower scores mean higher rates, but we've closed deals at 580 when borrowers have compensating factors.
FHA requires 3.5%, conventional goes as low as 3%. USDA loans offer zero down for eligible rural properties in Madera County.
Most of Chowchilla qualifies for USDA financing with zero down payment. We verify property eligibility before you make an offer.
FHA allows lower credit scores but requires mortgage insurance for life of loan. Conventional drops PMI after 20% equity and offers better rates above 680 credit.
Most purchases close in 25-35 days. Rural properties with well or septic can add a week for inspections and appraisal reviews.
Yes, but financing changes above 10 acres. Most conventional lenders cap at 10 acres; beyond that you need specialized rural property loans.
Two years tax returns, 60 days bank statements, 30 days pay stubs. Self-employed borrowers need P&L statements or bank statement loans.
Conventional loans drop PMI at 20% equity. FHA charges it for loan life unless you put 10% down, then it drops after 11 years.
Expect 2-3% of purchase price. That covers lender fees, title, escrow, and prepaid property taxes for Madera County.
Yes. We use bank statement loans, 1099 loans, or P&L statement programs that don't require two years of tax returns.
We shop 200+ lenders for your best rate and program fit. Banks only offer their own products at their posted rates.
Not automatically. Rates depend on credit, down payment, and loan type—not whether the property is rural or urban.
Yes, VA loans work here with zero down and no PMI. Property must meet VA appraisal standards including well and septic inspections if applicable.
DSCR loans qualify investors based on rental income, not personal income. You need the property to generate enough rent to cover the mortgage.
Your total debt payments can't exceed 43-50% of gross income, depending on loan type. We calculate this during pre-approval.
FHA 203k and conventional renovation loans let you finance purchase plus repairs. Property must be livable at closing for standard loans.
ARMs offer lower initial rates that adjust after a fixed period. Common terms are 5/1, 7/1, or 10/1 where rate changes annually after initial period.
Only if property is in a FEMA flood zone. Lenders require it when appraisal shows flood zone designation.
Yes, and you should. Pre-approval shows sellers you're serious and tells you exact budget before you start looking.
Pre-qualified is an estimate based on what you tell us. Pre-approved means we verified income, assets, and credit—much stronger with sellers.
Yes. We offer DSCR loans, investor programs, and portfolio loans for rental properties with 15-25% down depending on credit.
Lenders count 1% of balance or actual payment in your debt ratio. Income-based repayment plans can lower this calculation.
You'll pay roughly 1.1% of purchase price annually. Lender collects monthly through escrow and pays county twice yearly.
Yes, usually for 30-60 days once under contract. Rate locks protect you if rates rise before closing.
Jumbo loans exceed conforming limits, currently $806,500 in Madera County. They require stronger credit and larger down payments than conventional.
Yes, from family members with a gift letter. FHA and conventional allow 100% of down payment from gifts.
Yes, lenders require proof of insurance before funding. You'll need a policy in place at least three days before closing.
You pay points upfront to lower your rate. It makes sense if you keep the loan long enough to recover the cost.
Yes, if it's on a permanent foundation and classified as real property. Financing options and rates differ from site-built homes.
You can renegotiate price, pay the difference in cash, or walk away if you have an appraisal contingency. We help you evaluate options.
Lenders require well testing for flow rate and water quality. Most conventional and FHA loans accept wells that meet EPA standards.
Yes, once you have 20% equity. Refinancing into conventional eliminates PMI and often lowers your rate if market conditions improved.
Loans a lender keeps instead of selling. They offer more flexibility on credit, income documentation, and property types than conforming loans.
Yes, we broker construction-to-permanent loans that convert to a mortgage once building completes. Requires detailed plans and builder contracts.
Only if they have an assumable loan like FHA or VA. You still qualify through the lender and pay assumption fees.
Recent bankruptcy, foreclosure, or collections can delay approval. FHA allows purchase two years after bankruptcy, conventional waits four years.
15-year mortgages cost less interest total but have higher monthly payments. Choose based on monthly budget and how long you'll keep the home.
Mortgages for borrowers without Social Security numbers who have Individual Taxpayer ID Numbers. Requires larger down payments and higher rates.
Yes, if you stayed in the same field or increased income. Job gaps or career changes require more documentation and explanation.
Short-term financing to buy before selling your current home. Rates are higher but give you buying power without sale contingency.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.