Question 1

What loan types are available for Fairfax home buyers?

Accepted Answer

Fairfax buyers have access to conventional, jumbo, FHA, VA, bank statement, and many non-QM options. We shop 200+ lenders to match you with the right program.

Question 2

Do most Fairfax homes require a jumbo loan?

Accepted Answer

Yes. Marin County prices push most purchases past conforming loan limits. A jumbo loan is the standard path for most Fairfax buyers.

Question 3

What is the conforming loan limit in Marin County?

Accepted Answer

Marin County qualifies for high-cost conforming limits set by the FHFA. Loans above that ceiling are jumbo and have different qualification rules.

Question 4

How does a jumbo loan differ from a conventional loan?

Accepted Answer

Jumbo loans exceed the conforming limit and are not backed by Fannie Mae or Freddie Mac. Lenders set their own rules — credit, reserves, and down payment requirements are stricter.

Question 5

What credit score do I need to buy in Fairfax?

Accepted Answer

FHA loans allow scores as low as 580. Jumbo lenders typically want 700 or higher. Rates vary by borrower profile and market conditions.

Question 6

Can self-employed buyers get a mortgage in Fairfax?

Accepted Answer

Yes. Bank statement loans and P&L loans are built for self-employed borrowers. You use 12 or 24 months of deposits instead of tax returns.

Question 7

What is a bank statement loan?

Accepted Answer

It's a non-QM loan where your income is calculated from bank deposits, not W-2s or tax returns. Most lenders want 12 to 24 months of statements.

Question 8

What is a 1099 loan and who is it for?

Accepted Answer

A 1099 loan uses your 1099 forms to verify income instead of full tax returns. It works well for freelancers, contractors, and gig workers.

Question 9

What is an asset depletion loan?

Accepted Answer

Lenders divide your liquid assets over a set number of months to calculate income. It's a strong option for retirees or high-net-worth buyers with low reported income.

Question 10

Are FHA loans a good fit for Fairfax?

Accepted Answer

FHA loans work best at lower price points. In Fairfax, most homes will push you into jumbo territory, where FHA limits don't apply.

Question 11

Can veterans use a VA loan to buy in Fairfax?

Accepted Answer

Yes. VA loans have no loan limit for eligible veterans with full entitlement. No down payment is required, which is a real advantage in Marin.

Question 12

What is a VA loan and who qualifies?

Accepted Answer

VA loans are for active military, veterans, and eligible surviving spouses. The VA guarantees the loan, so lenders can offer better terms with no down payment.

Question 13

What is an interest-only loan and when does it make sense?

Accepted Answer

You pay only interest for a set period, which lowers your monthly payment. It can free up cash flow, but your principal balance doesn't drop during that period.

Question 14

What is a DSCR loan and can I use one in Fairfax?

Accepted Answer

A DSCR loan qualifies based on rental income, not personal income. If the property cash-flows, you can qualify — no W-2 or tax return needed.

Question 15

What is a bridge loan and when would I use one?

Accepted Answer

A bridge loan taps your current home's equity to fund your next purchase before your old home sells. It's useful in fast markets where you can't wait.

Question 16

What is a portfolio ARM loan?

Accepted Answer

Portfolio ARMs are adjustable-rate loans held by the lender instead of sold to investors. They often have more flexible underwriting than agency loans.

Question 17

What is an adjustable-rate mortgage (ARM)?

Accepted Answer

An ARM starts with a fixed rate for a set period, then adjusts with the market. A 5/1 ARM is fixed for 5 years, then adjusts annually. Rates vary by borrower profile and market conditions.

Question 18

What is a community mortgage?

Accepted Answer

Community mortgage programs are designed for low-to-moderate income buyers. They often have reduced PMI and flexible qualification standards.

Question 19

What is a construction loan and how does it work in Fairfax?

Accepted Answer

Construction loans fund the build, then convert to a permanent mortgage. Fairfax's older housing stock makes this a real option for buyers who want to build new.

Question 20

What is an ITIN loan?

Accepted Answer

ITIN loans allow buyers without a Social Security number to get a mortgage using their Individual Taxpayer Identification Number. Credit history and down payment requirements still apply.

Question 21

What is a foreign national loan?

Accepted Answer

Foreign national loans are for non-U.S. residents buying property in the U.S. Down payment requirements are higher, and lenders want strong asset documentation.

Question 22

What is a hard money loan and when would someone use one?

Accepted Answer

Hard money loans are short-term, asset-based loans funded by private investors. They close fast but carry high rates — used mostly for fix-and-flip or time-sensitive deals.

Question 23

What is a reverse mortgage and who qualifies?

Accepted Answer

Reverse mortgages let homeowners 62 and older convert equity to cash with no monthly payment. The loan is repaid when the home is sold or the owner moves out.

Question 24

What is a HELOC and how does it work?

Accepted Answer

A HELOC is a revolving credit line secured by your home equity. You borrow what you need, repay it, and borrow again — similar to a credit card backed by your home.

Question 25

What is a home equity loan?

Accepted Answer

A home equity loan gives you a lump sum at a fixed rate, secured by your equity. Unlike a HELOC, the rate and payment don't change over the loan term.

Question 26

How much down payment do I need in Fairfax?

Accepted Answer

FHA requires 3.5% down. Conventional loans can go as low as 3-5%. Jumbo loans in Marin typically require 10-20% down depending on the lender.

Question 27

What documents do I need to apply for a mortgage?

Accepted Answer

Most lenders want two years of tax returns, W-2s, 60 days of bank statements, and a recent pay stub. Self-employed borrowers may use bank statements or 1099s instead.

Question 28

How long does it take to close on a home in Fairfax?

Accepted Answer

Standard closings run 21 to 45 days. Cash-out refis or non-QM loans can take longer. Bridge loans and hard money can close in days when the deal demands it.

Question 29

What are closing costs in Marin County?

Accepted Answer

Expect 2-3% of the purchase price in closing costs. In Marin, that adds up fast given local price levels. Some costs are negotiable with the seller.

Question 30

What is PMI and when do I have to pay it?

Accepted Answer

PMI is private mortgage insurance required when you put less than 20% down on a conventional loan. It protects the lender, not you, and is added to your monthly payment.

Question 31

How do I avoid paying PMI?

Accepted Answer

Put 20% down and PMI disappears on conventional loans. VA loans never require PMI. Some lenders offer lender-paid PMI in exchange for a slightly higher rate.

Question 32

What is an equity appreciation loan?

Accepted Answer

An equity appreciation loan lets you access equity now in exchange for a share of future appreciation. It's a newer structure with specific investor requirements.

Question 33

What is a profit and loss statement loan?

Accepted Answer

A P&L loan uses a CPA-prepared profit and loss statement to verify income. It's built for business owners whose tax returns show lower income than they actually earn.

Question 34

What is a USDA loan and does it apply in Fairfax?

Accepted Answer

USDA loans are for rural and suburban areas with income limits. Fairfax is unlikely to qualify given Marin's urban classification, but it's worth confirming eligibility.

Question 35

Can I buy an investment property in Fairfax with a DSCR loan?

Accepted Answer

Yes. DSCR loans are specifically designed for investment properties. The loan qualifies on the property's rental income, not your personal tax return.

Question 36

What is the difference between FHA and conventional loans?

Accepted Answer

FHA is government-backed with lower credit and down payment requirements. Conventional loans are not government-backed and typically require stronger credit and larger down payments.

Question 37

How do mortgage brokers differ from direct lenders?

Accepted Answer

A broker shops your loan across many lenders to find the best fit. A direct lender only offers their own products. We access 200+ wholesale lenders — that's the difference.

Question 38

What's the benefit of using a mortgage broker in Marin County?

Accepted Answer

One application, dozens of lenders reviewed. In a high-cost county like Marin, finding the right jumbo or non-QM program can save you thousands over the loan's life.

Question 39

What are mortgage points and should I pay them?

Accepted Answer

Points are upfront fees that buy down your interest rate. One point equals 1% of the loan amount. Whether to pay depends on how long you plan to hold the loan.

Question 40

How does debt-to-income ratio affect my approval?

Accepted Answer

DTI is your monthly debt payments divided by gross monthly income. Most conventional lenders cap DTI at 43-45%. Jumbo lenders often want it below 43%.

Question 41

What is a rate lock and when should I lock my rate?

Accepted Answer

A rate lock protects your rate for a set period, usually 30 to 60 days. Lock too early and you may pay for extensions. Lock too late and rates could move against you.

Mortgage FAQs for Fairfax, Marin County