Livingston Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans allow 580 credit scores with 3.5% down. Conventional loans typically need 620 minimum, though some lenders go to 600 for strong borrowers with higher down payments.

FHA requires 3.5% down, conventional loans allow 3% for first-time buyers. USDA loans offer zero down for qualifying properties outside city limits, which covers some Livingston areas.

Yes, ITIN loans let you qualify using an Individual Taxpayer Identification Number. We work with several lenders who specialize in ITIN financing for Merced County borrowers.

Most conventional and FHA loans close in 21-30 days. Bank statement and ITIN loans may take 30-45 days due to additional underwriting review.

Yes, ag income requires two years of tax returns showing stable or increasing earnings. Seasonal workers often qualify better using bank statement loans that average 12-24 months of deposits.

Parts of Livingston qualify for USDA rural development loans with zero down payment. Properties must meet USDA income and location requirements—we verify eligibility by address.

W-2 borrowers need two years tax returns, 30 days paystubs, and two months bank statements. Self-employed borrowers need two years business returns plus personal returns.

Bank statement loans work for self-employed borrowers who write off significant business expenses. Lenders typically use 50% of deposits as qualifying income over 12-24 months.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan life. Conventional loans drop PMI at 78% loan-to-value and often have lower rates.

Merced County taxes run approximately 1.1-1.2% of purchase price annually. New purchases trigger reassessment, so budget for higher taxes than the seller currently pays.

Investor loans require 15-25% down depending on credit and experience. DSCR loans qualify you on rental income alone without tax returns or W-2s.

Budget 2-5% of purchase price for closing costs including lender fees, title insurance, and escrow charges. Rates vary by borrower profile and market conditions.

Buying points makes sense if you're keeping the loan 5+ years. Each point costs 1% of the loan and typically reduces your rate by 0.25%.

Conventional loans offer lender-paid PMI where you take a slightly higher rate instead of monthly insurance. Some borrowers prefer this over paying PMI separately.

Debt Service Coverage Ratio loans qualify rental properties on income the property generates. Investors who don't want to show personal income use these frequently.

Most lenders want two years in the same field. Job hoppers with increasing income can qualify with strong explanation letters and similar work history.

FHA 203k and Fannie Mae HomeStyle loans finance purchase plus repairs in one loan. Properties must be habitable—hard money loans cover uninhabitable fixers.

ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years. They make sense if you're selling or refinancing before the adjustment period ends.

Veterans, active military, and some spouses qualify for VA loans with zero down and no PMI. You need a Certificate of Eligibility from the VA to start.

Foreign national loans require 30-40% down and qualify you without US credit or tax returns. We work with lenders who specialize in these programs.

Bridge loans provide short-term financing when buying before selling your current home. Rates are higher but give you non-contingent buying power.

Lenders average two years of net income from tax returns. Bank statement and 1099 loans offer alternatives if your returns show heavy write-offs.

FHA and conventional loans allow gifted down payments from family members. You need a gift letter stating the money doesn't require repayment.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit—sellers take it seriously.

Lenders count 1% of the balance as monthly payment if your loans are in deferment. Income-driven repayment plans use the actual payment amount.

Once you hit 20% equity through payments or appreciation, you can refinance to drop PMI. Some loans allow PMI removal without refinancing at 22% equity.

Interest-only loans let you pay just interest for 5-10 years before principal payments begin. Investors use these to maximize cash flow from rentals.

Adding a co-borrower combines income but also includes their debts and credit score. Both incomes must qualify under lending guidelines separately.

FHA allows purchases two years after bankruptcy discharge and three years after foreclosure. Conventional loans typically require four and seven years respectively.

Asset depletion loans qualify you using retirement accounts and investments divided by 360 months. Retirees with assets but limited income use these successfully.

Lock when you're satisfied with the rate and closing within 30-45 days. Floating makes sense only if you have time and expect rates to drop.

If you're paying alimony or child support, lenders count it as debt. Receiving support counts as income with proof of consistent 6-month payment history.

Manufactured homes on permanent foundations qualify for FHA and conventional financing. The home must have been built after June 1976 and meet HUD standards.

Jumbo loans exceed conforming limits—currently $806,500 in Merced County. Most Livingston homes stay under this threshold and use conventional or FHA financing.

Most programs review two years of income and employment. Bank statements go back 60 days, credit reports show seven years of payment history.

Bank statement loans work if you deposit cash consistently and can document deposits over 12-24 months. Inconsistent deposits make qualification difficult.

Lenders verify employment days before closing. Job loss typically kills the loan unless you secure comparable employment immediately with offer letter.

Yes, lenders count HOA dues as monthly debt. High HOA fees in condo complexes reduce your maximum purchase price by limiting debt-to-income ratios.

You can't finance costs beyond purchase price, but sellers can credit costs up to allowable limits. VA and USDA loans allow certain fees to be financed.

FHA and conventional loans require functional utilities, intact roof, and safe access. Appraisers flag peeling paint, broken windows, and major deferred maintenance.