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Atwater Mortgage FAQ
Atwater homebuyers face unique challenges in Merced County's evolving market. We answer the mortgage questions we hear most often from local borrowers.
Our team has closed hundreds of loans across Atwater neighborhoods. We know which programs work best for different buyer situations.
From conventional loans to specialized programs for self-employed buyers, we break down what actually matters for approval. These answers come from real deal experience, not generic mortgage advice.
FHA loans accept 580 credit scores with 3.5% down. Conventional loans typically need 620, though better rates start at 680.
FHA requires 3.5% down, conventional allows 3%, and VA offers zero down for veterans. Larger down payments reduce monthly costs but aren't always necessary.
W-2 workers provide pay stubs and tax returns. Self-employed borrowers typically need two years of returns or 12-24 months of bank statements.
Absolutely. Bank statement loans use deposits instead of tax returns, which works better for business owners who write off expenses.
Most purchases close in 30 days. Complex loans like construction or portfolio products may take 45 days.
Not at all. Conventional loans approve borrowers at 620, though rates improve significantly above 740.
Expect 2-5% of the purchase price. This covers lender fees, title insurance, escrow, and prepaid items like property taxes.
Yes. VA loans require no down payment and work well for eligible veterans and active-duty service members in Merced County.
FHA accepts lower credit scores and smaller down payments. Conventional loans cost less monthly if you have strong credit.
Not for most properties. Atwater proper doesn't qualify, but some rural areas outside city limits may be eligible.
ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They work well if you plan to sell or refinance before adjustment.
Bring two months of bank statements, two years of tax returns, recent pay stubs, and photo ID. Self-employed borrowers need business returns too.
Yes. DSCR loans qualify based on rental income, not your tax returns, which works better for real estate investors.
PMI is mortgage insurance required below 20% down on conventional loans. You avoid it with larger down payments or lender-paid options.
Most pre-approvals expire after 90 days. Lenders need updated documents if your financial situation changes before closing.
Yes. FHA and conventional loans allow gift funds from family members with a signed gift letter.
Points are prepaid interest that lower your rate. They make sense if you're keeping the loan beyond five years.
Most loans require appraisals. Some refinances qualify for appraisal waivers if you have strong equity and credit.
Yes. Foreign national loans work for non-residents, and ITIN loans serve borrowers without Social Security numbers.
Bridge loans provide short-term financing when buying before selling your current home. They're expensive but solve timing problems.
Bank statement loans use deposits to prove income instead of tax returns. Rates run higher but approval is easier for self-employed buyers.
DSCR loans qualify based on rental income, not personal income. Real estate investors use them to scale portfolios faster.
Yes. FHA 203k and conventional renovation loans roll purchase and rehab costs into one mortgage.
Pre-qualification is an estimate based on your word. Pre-approval involves document verification and matters more to sellers.
Some loans require 2-6 months of reserves in savings. Investment properties and higher loan amounts typically need more.
FHA allows purchases two years after Chapter 7 discharge. Conventional loans typically require four years.
You pay only interest for 5-10 years, then the loan fully amortizes. Monthly payments jump significantly after the interest-only period ends.
Lenders want housing costs below 28% of gross income and total debts below 43%. Some programs allow higher ratios with compensating factors.
Most lenders lock rates only after you're in contract. Rate locks typically last 30-60 days depending on your closing timeline.
Asset depletion uses retirement accounts and investments to qualify instead of income. It works well for retirees with assets but limited monthly income.
Yes. Lenders require proof of insurance before funding, and you'll prepay the first year's premium at closing.
Yes. 1099 loans use your gross income before business deductions, which often qualifies contract workers for larger loans.
You renegotiate the price, bring extra cash to close, or cancel the contract. Low appraisals kill deals when buyers can't bridge the gap.
Compare APR, not just rate, and check closing costs. The lowest rate often comes with higher fees that increase total cost.
Portfolio ARMs are adjustable loans held by individual lenders with flexible guidelines. They work for borrowers who don't fit standard loan boxes.
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.