Willits Mortgage FAQs: Your Questions Answered by Local Brokers

Expect 21-30 days for conventional loans, longer for USDA loans common in rural Mendocino County. Appraisal delays add time since fewer appraisers cover the area.

FHA loans accept 580 scores with 3.5% down. Conventional loans prefer 620 or higher for best rates and terms.

Yes, with bank statement or 1099 loans that focus on cash flow rather than W-2 income. Many Willits borrowers use these programs successfully.

Absolutely. Much of Mendocino County qualifies for USDA financing with zero down payment. We check eligibility by address.

USDA loans require zero down for eligible properties. FHA needs 3.5%, conventional loans start at 3% for first-time buyers.

Rarely. Most Willits properties fall under the conforming loan limit of $806,500 for 2025. Larger acreage parcels may require jumbo financing.

Common in Willits and fully financeable. Lenders require well water testing and septic inspections as loan conditions before closing.

Yes, with a construction loan that converts to permanent financing. These require 20-25% down and detailed builder contracts.

Two years tax returns, recent pay stubs, bank statements, and ID. Self-employed borrowers need profit and loss statements or bank statements.

Typically 2-3% of purchase price. Includes title insurance, escrow fees, appraisal, and lender charges. Sellers sometimes contribute.

Yes, with lender-paid PMI rolled into your rate or piggyback loans. VA and USDA loans have no PMI regardless of down payment.

If you served, yes. VA loans offer zero down, no PMI, and competitive rates for eligible veterans and active military.

FHA accepts lower credit scores and allows 3.5% down but requires mortgage insurance for life. Conventional loans drop PMI at 20% equity.

FHA 203k and conventional renovation loans finance purchase plus repairs in one loan. Properties must meet minimum livability standards.

Appraisers travel from outside the area and use comparable sales within 10-15 miles. Limited inventory can create valuation challenges.

Yes. Lenders accept gifts from family members with a signed letter confirming funds are a gift, not a loan.

You pay only interest for 5-10 years, then principal and interest after. Investors and seasonal income borrowers use these strategically.

Lenders want two years of tax returns showing steady income. Bank statement loans work better if your returns show heavy write-offs.

Yes, through ITIN loan programs. You need established credit history, stable income, and typically 15-20% down payment.

Debt Service Coverage Ratio loans qualify by property rental income, not your personal income. Ideal for investment properties in Willits.

Fifteen-year loans build equity faster with lower total interest but require higher monthly payments. Most Willits buyers choose 30-year terms.

Each point costs 1% of the loan amount and lowers your rate about 0.25%. Worth it if you keep the loan over five years.

Most lenders lock rates after you have a purchase contract. Some offer float-down options if rates drop before closing.

Lenders approve debt-to-income ratios up to 50% with strong credit. Budget for utilities, well maintenance, and septic costs too.

Pre-qualification is an estimate. Pre-approval means underwriting reviewed your documents and conditionally approved you for a specific amount.

Yes, and it must be in place before closing. Wildfire risk makes Mendocino County insurance expensive and sometimes hard to find.

Yes, with 10-15% down typically. Lenders require proof you can afford both mortgages and verify occupancy intent for your primary home.

Bridge loans let you buy before selling your current home. Short-term with higher rates, useful in competitive markets with timing gaps.

ARMs offer lower initial rates fixed for 3, 5, 7, or 10 years, then adjust annually. Best if you plan to move or refinance before adjustment.

Yes, after six months typically. Refinance to lower rates, eliminate PMI, or tap equity for home improvements.

A HELOC lets you borrow against home equity as needed, paying interest only on what you use. Requires solid equity and credit.

No, California uses escrow companies and title companies to handle closings. Attorneys are optional but not required.

You can negotiate price down, bring extra cash to close, or appeal with additional comparable sales. Low appraisals kill deals sometimes.

Yes, during contingency periods for inspections, appraisal, and loan approval. You forfeit earnest money if you cancel after contingencies expire.

Brokers shop 200+ lenders to find better rates and programs than single-bank options. Especially valuable for non-traditional income or rural properties.