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Fairfax Mortgage FAQ
Fairfax sits in one of California's most competitive housing markets. Most buyers here need creative financing beyond basic FHA and conventional loans.
We field hundreds of mortgage questions from Marin County buyers each year. These answers reflect what actually gets deals approved in Fairfax.
From self-employed income verification to jumbo loan requirements, this guide covers the questions we hear most. Every answer comes from real broker experience.
Most conventional loans require 620 minimum, though 700+ gets better rates. FHA allows 580 with 3.5% down, but Fairfax prices usually push buyers above FHA limits.
Conventional loans require 3-5% minimum, but 20% avoids PMI. Jumbo loans common in Fairfax typically need 10-20% depending on loan amount and credit profile.
FHA allows lower credit scores and 3.5% down but requires mortgage insurance for the loan's life. Conventional loans need higher credit but drop PMI at 20% equity.
Many Fairfax properties exceed conforming limits of $806,500 for 2025. Properties above that require jumbo loans with stricter qualification standards.
W-2 borrowers need two years tax returns, two months bank statements, and pay stubs. Self-employed buyers need additional documentation depending on income verification method chosen.
Full approval typically takes 21-30 days with complete documentation. Pre-approval takes 3-5 days and strengthens your offer in Fairfax's competitive market.
Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and profit-loss statement programs for varied income types.
Expect 2-5% of purchase price covering lender fees, title insurance, escrow, and appraisal. On an $1.2 million Fairfax home, budget $24,000-$60,000 in closing costs.
Fixed rates protect against payment increases over 30 years. ARMs offer lower initial rates but adjust after 5-10 years, making sense if you'll move or refinance soon.
PMI protects lenders when you put down less than 20%. You avoid it by putting 20% down or using piggyback loans that split financing into two mortgages.
Yes. Investment properties require 15-25% down and qualify on rental income potential. DSCR loans approve based purely on property cash flow, not personal income.
DSCR loans qualify investors based on rental income, not W-2 wages. If property rent covers 1.25x the mortgage payment, you can qualify without tax returns.
Most lenders cap DTI at 43-50% of gross monthly income. That includes your new mortgage payment plus car loans, credit cards, and other monthly debt obligations.
California offers CalHFA loans with 3-3.5% down and down payment assistance. Community Mortgages through Fannie Mae also provide flexible qualification for eligible buyers.
Bank statement loans work for self-employed borrowers who write off significant business expenses. Lenders use 12-24 months of deposits to calculate qualifying income.
Submit income docs, credit authorization, and asset statements. We verify everything with underwriting, then issue a pre-approval letter valid 60-90 days for house hunting.
Most lenders approve mortgages up to 43-50% of gross monthly income. A $12,000 monthly income qualifies for roughly $5,160-$6,000 in total monthly debt payments.
Pre-qualification estimates what you might afford based on stated information. Pre-approval involves full credit and income verification, making offers significantly stronger in Fairfax's competitive market.
Yes. Foreign national loans allow non-residents to buy with 30-40% down. ITIN loans work for US residents without Social Security numbers, requiring ITIN and qualifying income.
Bridge loans provide short-term financing using equity from your current home. They help Fairfax buyers purchase before selling, then refinance into permanent financing after closing both transactions.
You pay only interest for 5-10 years, then principal and interest after. Lower initial payments help with Fairfax's high prices but require discipline for eventual payment increase.
Recent bankruptcy, foreclosure, or short sale create waiting periods of 2-7 years depending on loan type. Late payments, collections, and high credit utilization also impact approval odds.
Construction loans combine purchase and renovation financing into one loan. You need detailed contractor bids and 10-20% down, with funds released as work completes.
Asset depletion loans qualify you using investment accounts and savings instead of employment income. Lenders divide total assets by 360 months to calculate qualifying income.
VA loans require no down payment and no PMI for qualified veterans. Fairfax prices often need jumbo VA loans, which require 25% down on amounts exceeding conforming limits.
Each point costs 1% of loan amount and reduces your rate by roughly 0.25%. Points make sense if you'll keep the mortgage long enough to recoup upfront costs through payment savings.
Yes. Most loans allow gifts from family members with a signed letter confirming no repayment required. FHA allows 100% gifted down payment; conventional typically requires 5% borrower funds.
Interest rate is what you pay on the loan balance. APR includes rate plus lender fees and closing costs, showing true borrowing cost for comparing loan offers.
Marin County property taxes run approximately 1.1-1.3% of assessed value annually. Lenders escrow taxes monthly, adding roughly $1,200-$1,600 monthly for a $1.2 million Fairfax home.
HELOCs let you borrow against home equity with variable rates and interest-only payments. They work for renovations or emergency funds but carry risk if Fairfax property values decline.
Same-industry job changes typically work fine with one pay stub. Career changes require two years in new field unless you have extensive related experience documented through work history.
Portfolio ARMs are adjustable-rate loans held by individual lenders rather than sold to Fannie/Freddie. They offer flexible underwriting for complex income situations common among Fairfax buyers.
Homeowners 62+ can convert equity into cash without monthly payments. Loan balance grows over time and gets repaid when you sell, move, or pass away.
Brokers access 200+ wholesale lenders versus single-bank loan officers. We shop rates across multiple lenders and match your situation to specialized programs banks don't offer retail customers.
Most rate locks require a property address and purchase contract. Float-down locks protect against rate increases while letting you capture decreases before closing.
Low appraisals mean you need more down payment or the seller must reduce price. You can also dispute with comparable sales data or walk away if contract includes appraisal 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.