Question 1

What loan types are available in Dos Palos?

Accepted Answer

We offer FHA, VA, USDA, conventional, bank statement, DSCR, and more. Dos Palos borrowers have access to over 25 loan programs through our wholesale network.

Question 2

Does Dos Palos qualify for USDA loans?

Accepted Answer

Much of Merced County's rural areas qualify for USDA financing. USDA means zero down payment and below-market rates for eligible buyers.

Question 3

What credit score do I need to buy in Dos Palos?

Accepted Answer

FHA loans allow scores as low as 580. Conventional loans typically require 620 or higher.

Question 4

I'm a farmworker with seasonal income. Can I qualify?

Accepted Answer

Yes. Lenders can use a two-year average of seasonal income if it's documented consistently. Bank statement loans are another strong option here.

Question 5

What is a bank statement loan?

Accepted Answer

Instead of tax returns, lenders use 12-24 months of bank deposits to calculate your income. This works well for self-employed buyers whose write-offs reduce taxable income.

Question 6

Can I get a mortgage with an ITIN instead of a Social Security number?

Accepted Answer

Yes. ITIN loans are designed for borrowers without a Social Security number. Several of our lenders specialize in this program.

Question 7

How much down payment do I need in Dos Palos?

Accepted Answer

USDA requires 0% down. FHA requires 3.5% with a 580+ score. Conventional loans start at 3% for qualifying buyers.

Question 8

What are closing costs in Merced County?

Accepted Answer

Expect roughly 2-5% of the loan amount in closing costs. Sellers can sometimes cover a portion — we negotiate that into your offer.

Question 9

How long does it take to close a mortgage in Dos Palos?

Accepted Answer

Standard purchase loans typically close in 21-30 days. USDA loans can run 30-45 days due to the extra government approval step.

Question 10

What documents do I need to apply for a mortgage?

Accepted Answer

You'll need two years of tax returns, recent pay stubs, two months of bank statements, and a government ID. Self-employed borrowers substitute business records.

Question 11

What is an FHA loan and who is it best for?

Accepted Answer

FHA is a government-backed loan with low down payment and flexible credit rules. It fits first-time buyers or anyone rebuilding credit.

Question 12

What is a conventional loan?

Accepted Answer

Conventional loans aren't government-backed. They have stricter credit requirements but no upfront mortgage insurance premium like FHA.

Question 13

FHA vs. conventional: which is better in Dos Palos?

Accepted Answer

FHA wins if your credit is below 680 or your down payment is under 10%. Conventional is cheaper long-term once you hit 20% equity.

Question 14

What is PMI and when do I have to pay it?

Accepted Answer

PMI stands for private mortgage insurance. Lenders require it on conventional loans when you put less than 20% down.

Question 15

Does FHA charge mortgage insurance?

Accepted Answer

Yes. FHA charges an upfront premium of 1.75% of the loan plus an annual premium. It stays on the loan for the life of most FHA loans.

Question 16

What is a VA loan and who qualifies?

Accepted Answer

VA loans are for eligible veterans, active-duty service members, and surviving spouses. No down payment, no PMI, and rates are typically lower than conventional.

Question 17

Are there special loan programs for Dos Palos agricultural workers?

Accepted Answer

Bank statement and 1099 loans work well for ag workers paid by contract or cash. USDA loans are also a natural fit for this area.

Question 18

What is a 1099 loan?

Accepted Answer

1099 loans use your contractor income forms instead of W-2s or tax returns. Twelve to twenty-four months of 1099s typically qualifies you.

Question 19

Can I use rental income to qualify for a mortgage in Dos Palos?

Accepted Answer

Yes, if you have documented rental history. We can also structure a DSCR loan, where the property's rent covers the mortgage — your personal income doesn't factor in.

Question 20

What is a DSCR loan?

Accepted Answer

DSCR stands for Debt Service Coverage Ratio. Lenders approve the loan based on rental income versus the mortgage payment — no personal income docs needed.

Question 21

What is a hard money loan and when does it make sense?

Accepted Answer

Hard money is asset-based, short-term financing. It's for investors who need speed and can't wait for a traditional underwrite.

Question 22

Can I buy land and build in Dos Palos?

Accepted Answer

Yes. Construction loans cover the build phase, then convert to a permanent mortgage. We have lenders that specialize in rural construction in Merced County.

Question 23

What is a bridge loan?

Accepted Answer

A bridge loan lets you buy a new home before your current one sells. It's short-term, typically 6-12 months.

Question 24

What is a HELOC?

Accepted Answer

A HELOC is a Home Equity Line of Credit. You draw from it like a credit card, using your home's equity as collateral.

Question 25

Can I do a cash-out refinance in Dos Palos?

Accepted Answer

Yes. If you have equity built up, a cash-out refi lets you pull that cash for home improvements, debt payoff, or other needs.

Question 26

What is a reverse mortgage?

Accepted Answer

Reverse mortgages are for homeowners 62 and older. You convert equity into cash with no monthly payment required while you live in the home.

Question 27

What is an adjustable-rate mortgage (ARM)?

Accepted Answer

An ARM has a fixed rate for an initial period, then adjusts annually. It can make sense if you plan to sell or refinance within five to seven years.

Question 28

What is an interest-only loan?

Accepted Answer

You pay only interest for a set period, keeping monthly payments lower. Principal payments kick in later — this works for investors managing short-term cash flow.

Question 29

What is an asset depletion loan?

Accepted Answer

Lenders divide your liquid assets over a set number of months to calculate monthly income. It's built for retirees or high-net-worth borrowers with low earned income.

Question 30

What is a jumbo loan?

Accepted Answer

A jumbo loan exceeds conforming loan limits set by Fannie Mae and Freddie Mac. These require stronger credit and larger reserves than standard loans.

Question 31

What are conforming loan limits in Merced County?

Accepted Answer

Merced County follows baseline conforming limits set by the FHFA each year. Loans above those limits require a jumbo program.

Question 32

How does my debt-to-income ratio affect my approval?

Accepted Answer

DTI is your monthly debt payments divided by gross monthly income. Most conventional lenders cap DTI at 45%, though FHA allows up to 57% in some cases.

Question 33

How many bank accounts do I need for a bank statement loan?

Accepted Answer

You need 12-24 months of statements from your primary business or personal account. Mixing personal and business accounts can complicate the income calculation.

Question 34

Can a foreign national buy property in Dos Palos?

Accepted Answer

Yes. Foreign national loans exist for non-U.S. residents buying California property. Expect larger down payments and no requirement for a U.S. credit history.

Question 35

What is a portfolio ARM?

Accepted Answer

Portfolio ARMs are adjustable-rate loans held by the lender — not sold to Fannie or Freddie. Lenders can flex the guidelines more than standard programs allow.

Question 36

How do mortgage rates work for borrowers in Dos Palos?

Accepted Answer

Your rate depends on credit score, loan type, down payment, and the lender we match you with. Rates vary by borrower profile and market conditions.

Question 37

Is Dos Palos a good market for real estate investors?

Accepted Answer

Merced County's ag economy supports consistent rental demand. DSCR loans let investors qualify on property income alone — no W-2 needed.

Question 38

What is a profit and loss statement loan?

Accepted Answer

A CPA or licensed accountant prepares a 12-24 month P&L. Lenders use that to verify income for self-employed borrowers instead of tax returns.

Question 39

What is a community mortgage?

Accepted Answer

Community mortgage programs often target underserved borrowers with flexible income and down payment rules. Some require homebuyer education courses.

Question 40

How do I get started with SRK CAPITAL?

Accepted Answer

Call us or apply online. We'll review your income, credit, and goals — then shop our lender network to find the strongest fit for your situation.

Dos Palos Mortgage FAQ: Real Answers From a CA Broker