Mill Valley Mortgage FAQs: Your Questions Answered by Local Brokers

Conventional loans start at 620, but most Mill Valley purchases need jumbo financing requiring 680-700 minimum. Higher scores unlock better rates and lower down payments.

Jumbo loans typically require 10-20% down depending on loan amount and property type. Investment properties and condos often need 25-30% down.

Most Mill Valley homes exceed the conforming limit of $806,500. Jumbo loans cover purchase prices from $806,501 to $5 million or higher.

Bank statement loans work well for self-employed buyers who write off significant expenses. We analyze 12-24 months of deposits instead of tax returns.

Standard deals need two years tax returns, 60 days bank statements, and employment verification. Alternative programs may require only bank statements or asset documentation.

Pre-approval takes 24-48 hours with complete documents. Full underwriting runs 3-4 weeks, though we can expedite for competitive situations.

FHA loans work for condos and lower-priced properties under $498,257. Most single-family homes here exceed FHA limits and need conventional or jumbo financing.

Conforming loans max out at $806,500 with easier qualification. Jumbo loans cover higher amounts but require stronger credit, more reserves, and larger down payments.

DSCR loans approve based on rental income, not your tax returns. Expect 25% down and rates 0.5-1% higher than primary residence loans.

Expect 2-3% of the loan amount for lender fees, title, escrow, and appraisal. Jumbo loans sometimes run higher due to additional underwriting requirements.

PMI applies to conventional loans with less than 20% down. Jumbo loans avoid PMI but require larger down payments upfront.

ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They work if you plan to sell or refinance before the first adjustment.

Foreign national loans require 30-40% down and proof of international income. We work with lenders who specialize in non-resident financing.

Bank statement loans use deposits to calculate income instead of tax returns. They're built for business owners and self-employed borrowers who maximize write-offs.

Bridge loans let you buy before selling your current home. Rates run higher but you avoid contingent offers in competitive Mill Valley bidding situations.

Interest-only loans lower your monthly payment for 10 years, then convert to principal and interest. They help manage cash flow on expensive properties.

HELOCs on your primary residence can fund a down payment on Mill Valley property. Lenders count the HELOC payment in your debt-to-income ratio.

Asset depletion loans qualify you based on investment accounts, not income. Lenders divide your assets by 360 months to calculate qualifying income.

Jumbo loans typically require 6-12 months reserves covering principal, interest, taxes, and insurance. Investment properties need 12-18 months.

DSCR loans approve rental properties based on rent coverage, not your income. No tax returns required if the property cash flows.

Construction loans fund ground-up builds or major renovations. They convert to permanent financing once construction completes.

FHA allows 3.5% down and 580 credit scores but charges mortgage insurance for life. Conventional needs higher scores but drops PMI at 20% equity.

VA loans work up to $806,500 with zero down for eligible veterans. Above that limit, you'll need a down payment or jumbo VA loan.

ITIN loans let non-citizens buy property using an Individual Taxpayer ID instead of a Social Security number. Requirements mirror conventional loans.

Hard money loans fund fix-and-flip properties or deals that won't qualify for traditional financing. Rates run 9-12% with short terms.

Condos need warrantable status for conventional financing. Non-warrantable condos require portfolio loans with 25-30% down.

P&L loans use a CPA-prepared statement instead of tax returns. They work for self-employed borrowers with strong business income.

Each point costs 1% of the loan amount and typically lowers your rate by 0.25%. Points make sense if you're keeping the loan 5+ years.

DTI divides your monthly debts by gross income. Conventional loans max at 43-50%, jumbo loans prefer 43% or lower.

Pre-approval takes 1-2 days with full documentation review. Sellers in competitive markets won't consider offers without strong pre-approval letters.

Low appraisals mean you'll need a larger down payment to cover the gap. Some sellers negotiate, but Mill Valley's market often favors sellers.

Fifteen-year loans build equity faster with lower rates but higher payments. Thirty-year terms offer flexibility and lower monthly obligations.

Rate locks guarantee your rate for 30-60 days during closing. Lock when rates are favorable or when you have a signed purchase contract.

You can't add costs to your loan amount, but sellers can offer credits or you can take a higher rate for lender credits.

Brokers shop 200+ lenders to find the best rate and program fit. Banks only offer their own products with less flexibility.