Larkspur Mortgage FAQs: Your Questions Answered by Local Brokers

Conventional loans start at 3% down, but jumbo loans typically require 10-20%. Most Larkspur buyers put down 15-25% to get better rates and avoid PMI on higher-priced homes.

FHA loans accept 580 credit scores with 3.5% down. Conventional and jumbo loans work best with 680+, though we have portfolio lenders who go lower for strong applicants.

Most purchases close in 21-30 days. Cash-out refinances and complex income documentation can take 35-45 days depending on appraisal turnaround.

W-2 borrowers need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers need full returns with all schedules and year-to-date profit and loss.

Yes, Marin County home prices push most buyers into jumbo territory. Jumbo loans start at $806,500 in 2024 and require stronger credit and reserves than conforming loans.

Absolutely. Bank statement loans use 12-24 months of deposits to qualify you without tax returns showing full income.

FHA allows 580 credit and 3.5% down but charges lifetime mortgage insurance. Conventional requires 620+ credit but drops PMI once you hit 20% equity.

Only if you put down less than 20% on a conventional loan or use FHA financing. Jumbo loans often waive PMI with 15% down depending on credit strength.

Expect 2-4% of the loan amount for lender fees, title, escrow, and prepaid items. On a $1.5M purchase, budget $30,000-$60,000 for closing costs.

Yes. Bank statement loans work for primary homes, second homes, and investment properties in Larkspur.

DSCR loans qualify you based on rental income, not personal income. Investors buying Larkspur rentals use these to avoid tax return and W-2 requirements entirely.

Conventional rates are lowest for 740+ credit and 20% down. Bank statement and DSCR loans run 0.5-1.5% higher depending on down payment and property type.

15-year loans save on interest but double your payment. Most Larkspur buyers choose 30-year terms for flexibility, then pay extra principal when possible.

Points let you prepay interest to lower your rate. Each point costs 1% of the loan amount and typically drops your rate 0.25%. Worth it if you keep the loan 5+ years.

Yes. ITIN loans work for foreign nationals and non-residents buying Larkspur property. Rates run slightly higher than conventional loans with similar down payments.

ARMs start with lower rates than 30-year fixed loans. A 7/1 ARM makes sense if you plan to sell or refinance within seven years.

You need two years in the same industry or field. Switching employers is fine if your income stayed consistent or increased.

Lenders use 75% of market rent on investment properties. You need a current lease or appraisal showing rental value to count that income.

Portfolio ARMs are held by the lender, not sold to Fannie or Freddie. They offer flexible underwriting for high earners with complex income or multiple properties.

Construction loans cover purchase and renovation costs in one loan. You need 20% down and detailed contractor bids to get approved.

Home equity loans give you a lump sum with fixed payments. HELOCs work like credit cards with variable rates and a draw period.

Jumbo loan limits go up to $3-4M for most buyers with strong credit. Above that, you need significant reserves and alternative documentation.

Yes, and VA loans offer 0% down with no PMI. Eligible veterans buying in Larkspur should compare VA rates against conventional and jumbo options.

Reserves are savings equal to your mortgage payment. Jumbo loans typically require 6-12 months, while conventional loans need 2-6 months depending on down payment.

Asset depletion loans divide your liquid assets by 360 months to calculate qualifying income. Works well for retirees with portfolios but limited W-2 income.

Bridge loans let you buy before selling your current home. Short-term financing, usually 6-12 months, with higher rates than permanent mortgages.

Lenders want your total monthly debts under 43-50% of gross income. Jumbo loans often cap DTI at 43% even with excellent credit.

Yes, but you need stronger reserves and lower DTI. Portfolio lenders specialize in borrowers with 4+ financed properties when Fannie Mae caps out.

You need to cover the gap in cash, renegotiate price, or cancel the contract. Low appraisals are less common in Larkspur's consistent market.

Lock when you're satisfied with the rate and have an accepted offer. Floating risks rate increases but can save money if rates drop before closing.

Flood insurance applies only in FEMA zones, rare in most Larkspur neighborhoods. Earthquake coverage is optional but common given Bay Area seismic risk.

Most loans allow prepayment without penalty. Some portfolio and hard money loans have 1-3 year prepayment penalties, so confirm before signing.

We compare rates, costs, and qualification ease across your options. The right loan depends on your income type, down payment, and how long you'll keep the property.

We have lenders who close in 14-18 days for straightforward W-2 borrowers. Bank statement and portfolio loans need more time for underwriting.