Madera Mortgage FAQs: Your Questions Answered by Local Brokers

Full approval takes 21-30 days for most conventional loans. Self-employed borrowers using bank statements add 5-7 days for underwriting review.

FHA loans start at 580 credit score. Conventional loans work best with 620 or higher for competitive rates and terms.

Yes. VA loans require zero down for eligible veterans. USDA loans offer 100% financing in eligible rural areas around Madera.

W-2 earners need two years tax returns, recent pay stubs, and bank statements. Self-employed borrowers need business tax returns or 12-24 months bank statements.

Lenders typically approve up to 43% debt-to-income ratio. Your total debts plus mortgage payment shouldn't exceed 43% of gross monthly income.

Central Valley markets fluctuate with agricultural cycles and migration patterns. We see current rates by running fresh comps in your target neighborhood.

FHA loans require 3.5% down. Conventional loans start at 3% for first-time buyers and 5% for repeat buyers.

Yes, if you put less than 20% down on conventional loans. FHA requires mortgage insurance regardless of down payment amount.

Absolutely. We close bank statement loans regularly for self-employed borrowers in Madera County. You need 12-24 months of business bank statements.

FHA works better with lower credit scores and smaller down payments. Conventional wins with 680+ credit and 5% or more down.

California caps property tax at 1% of assessed value plus local bonds. New purchases reset the tax basis to purchase price.

Yes. We offer DSCR loans that qualify based on rental income, not your W-2. The property must generate enough rent to cover the mortgage.

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

Only if you're keeping the loan past the break-even point. Most Madera buyers refinance within 5 years, making points a poor investment.

Yes. ITIN loans require proof of income, 12-24 months bank statements, and typically 15-20% down payment for approval.

DSCR loans qualify you based on rental income, not personal income. Investors buying Madera rentals use these when they don't want tax returns reviewed.

Yes. Veterans get zero down with no mortgage insurance. VA appraisals are stricter, but most Madera properties pass inspection requirements.

Raw land requires 30-50% down through specialized lenders. Construction loans work better if you're building immediately after purchase.

Pre-qualification is an estimate based on your word. Pre-approval means underwriting reviewed your actual documents and credit report.

Your total monthly debts plus new mortgage can't exceed 43-50% of gross income. The exact amount depends on your debt load and loan type.

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

ARMs start with lower rates for 3, 5, 7, or 10 years, then adjust annually. These work if you're selling before the fixed period ends.

Traditional loans require two years tax returns showing stable income. Bank statement loans skip tax returns and use deposits to qualify you.

FHA 203k loans let you roll repair costs into the mortgage. Hard money loans work faster for investors flipping properties.

Most jumbo lenders want 680 minimum, but 700+ gets better rates. You'll also need larger cash reserves and lower debt ratios.

You pay only interest for 5-10 years, then principal and interest after. These help investors maximize cash flow on rental properties.

Yes. Foreign national loans require 20-30% down, valid visa or passport, and U.S. credit history or larger down payment.

Bridge loans let you buy before selling your current home. These work for 6-12 months while you close on your existing property.

FHA requires three years from foreclosure. Conventional loans need seven years, or four years with documented extenuating circumstances.

Yes. Bank statement and P&L loans work for refinancing just like purchases. We need 12-24 months statements to verify income.

You pay less total interest and build equity faster. Monthly payments run about 30% higher than 30-year terms.

Most purchase loans require full appraisals. Some refinances qualify for desktop appraisals or appraisal waivers with strong equity positions.

Compare APR, not just interest rate. APR includes lender fees and shows true borrowing cost over the loan term.

Conventional PMI drops at 78% loan-to-value automatically. You can request removal at 80% with an appraisal showing current value.

You renegotiate price, bring more cash, or cancel the deal. Appraisal gaps happen in fast markets when purchase prices outpace recent sales.

Yes, in eligible rural areas outside city limits. USDA offers 100% financing with no down payment for income-qualified buyers.

Lenders count 75% of documented rental income after one year of landlord experience. DSCR loans use full rental income without seasoning requirements.

These loans use investment accounts to qualify instead of employment income. Lenders divide assets by 360 months to calculate qualifying income.

Yes, but monthly student loan payments count against your debt ratio. Income-driven repayment plans can lower your qualifying payment amount.

Rate locks guarantee your rate for 30-60 days while closing. Lock when you have a signed purchase contract and feel comfortable with the rate.