Los Banos Mortgage FAQ – Get Answers to Your Home Loan Questions

You can qualify for an FHA loan with a 580 credit score and 3.5% down. Conventional loans typically require 620, though better rates come with scores above 700.

FHA loans require 3.5% down, conventional loans start at 3%, and USDA loans offer zero down if the property qualifies. Investment properties typically need 20-25% down.

Most purchase loans close in 30-45 days if your documents are complete. Self-employed or bank statement loans can take longer due to underwriting complexity.

Yes. We offer bank statement loans, P&L statement loans, and 1099 programs designed for non-W-2 income. Lenders review 12-24 months of deposits instead of tax returns.

W-2 borrowers need two years of tax returns, recent pay stubs, and two months of bank statements. Self-employed borrowers may need 12-24 months of bank statements or P&L statements.

Many areas in and around Los Banos qualify for USDA financing, which offers zero down payment. Check the USDA eligibility map or ask us to confirm the property address.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity and offer better rates for strong credit.

DSCR loans approve based on rental income, not your personal income. If rent covers 75-80% of the mortgage payment, you can qualify without tax returns or pay stubs.

Yes. ITIN loans are available through certain lenders with typical down payments of 15-20%. We shop multiple ITIN programs to find competitive rates.

Expect 2-5% of the purchase price for closing costs, including lender fees, title, escrow, and prepaid taxes. Some programs allow seller credits to cover part of these costs.

Points make sense if you plan to keep the loan beyond five years. Each point costs 1% of the loan and typically drops your rate by 0.25%.

Put down 20% or use a piggyback second mortgage to reach 20% equity. Once you hit 20% equity through payments or appreciation, you can request PMI removal.

Bank statement loans use 12-24 months of deposits to calculate income instead of tax returns. They work well for self-employed borrowers who write off significant business expenses.

Yes, and you should. Pre-approval shows sellers you're serious and gives you a clear budget. It takes 24-48 hours with complete documents.

Brokers shop 200+ lenders instead of offering one bank's rates. That means better pricing and access to niche programs like bank statement or DSCR loans.

ARMs offer lower initial rates for 5, 7, or 10 years before adjusting. They work if you plan to sell or refinance before the adjustment period ends.

Yes. Most loan programs allow gifted funds from family members with a signed letter. FHA and conventional loans both permit down payment gifts.

Hard money loans close in days and approve based on property value, not your credit or income. They're used for fix-and-flip projects or bridge financing.

Yes, lenders require an appraisal to confirm the property's value supports the loan amount. Appraisals typically cost $500-$700 and take 7-10 days.

You can negotiate a lower price, bring extra cash to close the gap, or walk away if you have an appraisal contingency. Low appraisals happen more in shifting markets.

Yes. FHA 203(k) and conventional renovation loans let you finance both the purchase and repairs. Hard money or construction loans work for more extensive projects.

Pre-qualification is an estimate based on what you tell us. Pre-approval involves document review and credit checks, giving you a firm borrowing amount.

Lenders want your total monthly debts under 43-50% of gross income. Lower DTI gets better rates and higher approval odds.

Yes. VA loans offer zero down payment with no PMI and competitive rates. You need a valid Certificate of Eligibility from the VA.

Interest-only loans let you pay just interest for 5-10 years before principal payments start. They suit buyers expecting income growth or planning to sell soon.

Property taxes are roughly 1.1-1.3% of assessed value annually, paid through your mortgage escrow account. Rates vary by specific tax districts and voter-approved bonds.

Yes. Cash-out refinancing lets you borrow against your equity for renovations, debt payoff, or other needs. You typically need 20% equity remaining after the new loan.

Portfolio ARMs are held by the lender instead of sold to Fannie or Freddie, allowing flexible underwriting. They work for unique income situations or non-standard properties.

Yes. Lenders require proof of insurance before funding your loan. Shop quotes early since premiums vary significantly between carriers.

Yes. Foreign national loans are available with larger down payments, typically 30-40%. No Social Security number or U.S. credit history required.

Bridge loans provide short-term financing to buy a new home before selling your current one. They close quickly but carry higher rates and fees.

That's what we do. Share your income type, credit score, and down payment, and we'll compare programs across 200+ lenders to find your best option.

A rate lock guarantees your interest rate for 30-60 days while your loan processes. Lock when you're in contract and rates are acceptable to you.

FHA, VA, and USDA loans are assumable with lender approval. Assumable loans can offer below-market rates if the seller has an older, low-rate mortgage.

Asset depletion loans qualify you based on savings, investments, or retirement accounts instead of monthly income. Lenders divide total assets by 360 months to calculate qualifying income.

FHA allows loans two years after Chapter 7 bankruptcy discharge and one year into Chapter 13 with payment history. Conventional loans typically require four years after Chapter 7.

It depends on the loan type. Investment properties and some jumbo loans require 6-12 months of reserves. Primary residence conventional loans often need zero reserves.

15-year mortgages have lower rates and save significant interest but require higher monthly payments. They build equity faster and pay off sooner.

Yes. Lenders count student loan payments in your debt-to-income ratio. Income-driven repayment plans can lower the payment used for qualifying purposes.

Your rate lock may expire, requiring an extension fee or new rate. Coordinate closely with your lender and escrow to avoid delays and additional costs.