Alturas Mortgage FAQs: Your Complete Guide to Home Financing in Modoc County

Most mortgage approvals take 30-45 days from application to closing. Pre-approval can be completed in 1-3 days with proper documentation. Rural properties may require additional appraisal time.

FHA loans require minimum 580 credit scores with 3.5% down. Conventional loans typically need 620 or higher. VA and USDA loans may accept scores as low as 580 with strong compensating factors.

Yes, Alturas qualifies for USDA financing as a rural area. These loans offer 100% financing with no down payment required for eligible buyers meeting income limits.

Bring two years of tax returns, recent pay stubs, bank statements from the last two months, and photo ID. Self-employed borrowers may need additional business documentation depending on loan type.

Down payments range from 0% (VA, USDA) to 3.5% (FHA) to 5-20% (conventional). Higher down payments often secure better rates and eliminate mortgage insurance requirements.

Closing costs typically run 2-5% of the loan amount. This includes appraisal, title insurance, escrow fees, and lender charges. Rates vary by borrower profile and market conditions.

Yes, we offer investor loans including DSCR loans that qualify based on rental income rather than personal income. Conventional investment loans require 15-25% down depending on property type.

DSCR loans qualify investors based on property rental income, not personal income. Ideal for self-employed buyers or those with multiple rental properties seeking easier qualification.

Bank statement loans use 12-24 months of business bank statements instead of tax returns. We calculate income from deposits, helping self-employed buyers qualify without traditional documentation.

Absolutely. We offer bank statement loans, 1099 loans, and profit and loss statement loans designed specifically for self-employed borrowers with non-traditional income documentation.

FHA loans require lower credit scores and just 3.5% down but include mortgage insurance. Conventional loans need higher scores but offer better rates and no insurance with 20% down.

Yes, eligible veterans and active military can use VA loans with zero down payment and no mortgage insurance. VA loans often provide the most competitive rates available.

ARMs offer lower initial rates that adjust after a fixed period. Best for buyers planning to sell or refinance within 5-7 years or expecting income increases.

FHA loans require mortgage insurance for the loan life. Conventional loans allow removal at 78-80% loan-to-value through appreciation or additional payments. Rates vary by borrower profile.

Yes, foreign national loans are available for non-US citizens. These typically require 20-30% down and use international credit history for qualification.

ITIN loans serve borrowers without Social Security numbers who have Individual Taxpayer Identification Numbers. Requirements include tax return history and standard down payment expectations.

Most lenders want housing costs below 28% of gross income and total debts below 43%. Self-employed programs and DSCR loans offer flexibility for non-traditional income situations.

PMI protects lenders when down payments are less than 20% on conventional loans. Costs typically range 0.5-1.5% of the loan amount annually, depending on credit and down payment.

Yes, FHA 203k renovation loans and conventional renovation loans finance both purchase and repairs. Construction loans also available for major projects or building new homes.

Jumbo loans exceed conforming limits set by Fannie Mae and Freddie Mac. In most California counties, this means loans above approximately $766,000, though rural areas may have different thresholds.

Interest-only loans allow payment of just interest for 5-10 years, lowering initial payments. Best for buyers expecting income growth or planning short-term ownership before selling.

Bridge loans provide short-term financing between selling one home and buying another. Useful when you need funds for a down payment before your current home sells.

Yes, most loan programs accept gift funds from family members. You'll need a gift letter stating the money doesn't require repayment and documentation showing the transfer.

Asset depletion loans qualify borrowers based on savings and investments rather than employment income. Ideal for retirees or those with substantial assets but limited traditional income.

Rate locks guarantee your interest rate for 30-60 days during processing. Consider locking when rates are favorable or you're within 30 days of closing.

Points let you pay upfront to lower your interest rate. One point equals 1% of the loan amount. Makes sense if you plan to keep the loan long enough to recoup costs.

Absolutely, and we recommend it. Pre-approval shows sellers you're serious and helps you understand your budget. The process takes 1-3 days with complete documentation.

Pre-qualification is an estimate based on stated information. Pre-approval involves credit checks and document verification, making it a stronger commitment for sellers to consider.

Hard money loans provide fast funding based on property value rather than credit. Higher rates and shorter terms make them ideal for fix-and-flip investors or time-sensitive purchases.

Home equity loans provide lump-sum cash using your home equity as collateral. Fixed rates and predictable payments make them popular for large expenses like renovations or debt consolidation.

Yes, HELOCs provide revolving credit lines secured by home equity. Variable rates and flexible access make them useful for ongoing expenses or uncertain project costs.

Reverse mortgages let homeowners 62+ convert equity to cash without selling. No monthly payments required. Best for seniors wanting to age in place while accessing home equity.

Appraisers evaluate your property against comparable sales in the area. Rural properties may take longer due to fewer comparables and greater distances between appraisal assignments.

You can renegotiate the price, increase your down payment to cover the gap, or request a reconsideration of value with additional comparables. Walking away is also an option.

Yes, refinancing makes sense when rates drop significantly or you want to shorten your term. Consider closing costs versus long-term savings to ensure it benefits you financially.

Portfolio ARMs are held by lenders rather than sold to investors, allowing more flexible underwriting. Good for unique properties or borrowers who don't fit traditional guidelines.

P&L loans use certified profit and loss statements instead of tax returns for self-employed borrowers. Provides faster qualification when business tax returns show lower income due to write-offs.

Community mortgages offer flexible qualification for buyers in specific areas or circumstances. May include down payment assistance or reduced requirements for eligible borrowers.

Budget for property taxes, homeowners insurance, maintenance, utilities, and HOA fees if applicable. Rural properties may have well, septic, and propane costs to consider as well.

We analyze your financial situation and match you with the best loan program from our 25+ options. Our local expertise helps Modoc County buyers navigate unique rural property challenges.