Dos Palos Mortgage FAQs – Answers from Central Valley Brokers

FHA loans start at 580, but 620 opens up conventional options with better rates. Most Dos Palos buyers qualify with scores between 620-680.

FHA requires 3.5%, conventional allows 3%, and USDA offers zero down if the property qualifies. Many Dos Palos homes fall within USDA rural eligibility zones.

Yes, most Dos Palos properties qualify for USDA financing with zero down. Income limits apply, but they're higher for Merced County families.

Figure 30-40 days from application to closing for most purchases. Cash-heavy markets move faster, but financing still takes a month minimum.

Absolutely. We use bank statement loans, 1099 loans, or profit and loss statements for farm income. Two years of history works best.

Two years tax returns, two months bank statements, pay stubs, and W-2s. Self-employed borrowers need profit and loss statements plus business bank statements.

Bank statement loans and 1099 loans solve this. We analyze deposits instead of tax returns to show actual cash flow.

Expect 2-4% of purchase price. On a $250k home, that's $5k-$10k including lender fees, title, escrow, and prepaid items.

Yes, seller concessions up to 3% on conventional loans and 6% on FHA. Negotiating power depends on how hot the market runs.

Only if you'll stay in the home long enough to recover the upfront cost. Most Dos Palos buyers skip points and keep cash liquid.

FHA allows lower credit scores and smaller down payments but charges mortgage insurance for life on minimum down. Conventional drops PMI at 78% loan-to-value.

Yes, if you put down less than 20% on conventional or use FHA financing. PMI costs 0.3-1.5% annually depending on credit and down payment.

DSCR loans work well here. We qualify you based on rental income, not personal income, with 15-25% down depending on credit.

ITIN loans let you qualify using an Individual Taxpayer Identification Number. Rates run slightly higher, but approval works the same way.

Lenders approve debt-to-income ratios up to 50% on many programs. A $5,000 monthly income supports roughly $250k-$300k purchase price.

Yes, on most loan types. You'll need a gift letter stating the money doesn't require repayment, plus proof it was transferred.

Rates vary by borrower profile and market conditions. Your credit score, loan type, and down payment drive your specific rate.

Fixed rates protect you from increases but start higher. ARMs offer lower initial rates if you'll move or refinance within 5-7 years.

You should. Pre-approval shows sellers you're serious and helps you bid confidently on properties you can actually afford.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit through documentation.

FHA 203k and conventional renovation loans both work. You finance purchase price plus repair costs in one loan, close before work starts.

Yes, lenders require it. Appraisals in smaller markets sometimes come in low, so build contingencies into your offer.

You can negotiate price down, bring extra cash to close, or cancel if you have an appraisal contingency. Lenders only finance appraised value.

If rates dropped or your credit improved, yes. We shop across 200+ lenders to find refinance terms that actually save you money.

Most programs require 20% equity to skip mortgage insurance. You can refinance with less equity, but PMI adds monthly cost.

Cash-out refinancing and HELOCs both work. Cash-out replaces your mortgage, HELOCs add a second lien you draw against as needed.

Debt Service Coverage Ratio loans qualify you on rental income alone, ignoring your W-2 or business income. Perfect for real estate investors buying multiple properties.

Yes, especially common for self-employed borrowers and business owners. We use 12-24 months of deposits to calculate qualifying income.

We divide your liquid assets by 360 months to create qualifying income. Works for retirees or borrowers with investment accounts but low reported income.

Absolutely. Zero down, no PMI, competitive rates for veterans and active military. One of the best programs available in any market.

Yes, foreign national loans require 20-30% down and proof of income from your home country. We handle documentation and currency conversion issues.

Bridge loans let you buy before selling your current home. Rates run higher, but you avoid rental costs or losing a property you want.

If it's permanently affixed to land you own, yes. FHA and conventional both finance manufactured homes meeting HUD code standards.

California caps base tax at 1% of assessed value plus voter-approved bonds. Your lender collects monthly and pays annually through escrow.

Lenders require coverage equal to loan amount minimum. Central Valley fire risk may increase premiums, so shop early for quotes.

Yes, rate locks freeze your rate for 30-60 days while you close. Lock when you're in contract, not during pre-approval.

We shop 200+ lenders, so one denial rarely ends the deal. Different lenders use different guidelines, and we know which ones fit unusual situations.

Look at APR, not just rate, to account for fees. Compare closing costs line by line, and ask about lender credits versus points.

Brokers shop rates across hundreds of lenders instead of offering one bank's products. You get more options and better pricing through wholesale channels.

Most loans allow prepayment without penalty. Check your note for restrictions, but conventional and government loans rarely charge prepayment fees.