Question 1

What loan programs are available in Marina, CA?

Accepted Answer

We offer 25+ programs here — VA, FHA, conventional, DSCR, jumbo, bank statement, and more. The right fit depends on your income type, credit, and whether you're buying or investing.

Question 2

How long does the mortgage process take in Marina?

Accepted Answer

Most purchases close in 21 to 30 days with a complete file. Self-employed borrowers using bank statements should expect 30 to 45 days.

Question 3

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 borrowers need two years of tax returns, 30 days of pay stubs, and two months of bank statements. Self-employed borrowers typically need 12 to 24 months of bank statements instead.

Question 4

What credit score do I need to buy in Marina?

Accepted Answer

FHA loans start at 580. Conventional loans typically require 620 or higher. Jumbo loans usually need 700 or above.

Question 5

Is Marina eligible for VA loans?

Accepted Answer

Yes. Marina has a strong VA loan market, partly due to its proximity to the former Fort Ord military base. No down payment is required for eligible veterans.

Question 6

Can I get a USDA loan in Monterey County?

Accepted Answer

Parts of Monterey County qualify for USDA rural loans. Marina proper may or may not qualify — we check eligibility on a property-by-property basis.

Question 7

What is the minimum down payment for an FHA loan?

Accepted Answer

FHA requires 3.5% down with a 580 credit score. Drop below 580 and you'll need 10% down to qualify.

Question 8

How much down payment do I need for a conventional loan?

Accepted Answer

Conventional loans allow as little as 3% down for first-time buyers. Most borrowers put 5% to 20% down depending on their goal.

Question 9

What are conforming loan limits in Monterey County?

Accepted Answer

Monterey County is a high-cost area. Conforming loan limits here exceed the national baseline — we confirm the current limit when you apply.

Question 10

What is a jumbo loan and when do I need one?

Accepted Answer

A jumbo loan exceeds the conforming loan limit for your county. In Monterey County, coastal prices often push buyers into jumbo territory.

Question 11

What is a DSCR loan and who uses it in Marina?

Accepted Answer

DSCR stands for Debt Service Coverage Ratio. It qualifies investors based on rental income — not personal income — making it popular with Marina rental property buyers.

Question 12

Can self-employed borrowers get a mortgage in Marina?

Accepted Answer

Yes. Bank statement loans, 1099 loans, and P&L loans are built for self-employed borrowers. We use 12 to 24 months of deposits to calculate your income.

Question 13

What is a bank statement loan?

Accepted Answer

It replaces tax returns with 12 to 24 months of bank deposits to prove income. This works well for business owners whose write-offs reduce taxable income.

Question 14

What is a 1099 loan?

Accepted Answer

A 1099 loan uses your 1099 forms instead of full tax returns to verify income. It's designed for contractors and freelancers with consistent 1099 earnings.

Question 15

What is an asset depletion loan?

Accepted Answer

Lenders divide your liquid assets over a set number of months to create an income figure. It's a strong option for retirees or asset-rich borrowers with low income.

Question 16

What is an ITIN loan?

Accepted Answer

ITIN loans are for borrowers without a Social Security number. They use an Individual Taxpayer Identification Number to qualify — no citizenship required.

Question 17

What is a Foreign National loan?

Accepted Answer

Foreign National loans are for non-US residents buying property here. Down payments are typically larger and rates are higher than standard programs.

Question 18

FHA vs conventional — which is better for Marina buyers?

Accepted Answer

FHA wins on credit flexibility. Conventional wins if you have 620+ credit and 5% down — you'll avoid FHA's lifetime mortgage insurance on lower LTV loans.

Question 19

What is PMI and how do I avoid it?

Accepted Answer

PMI is private mortgage insurance required on conventional loans below 20% down. Put 20% down or reach 20% equity to cancel it.

Question 20

Does FHA charge mortgage insurance?

Accepted Answer

Yes. FHA charges an upfront MIP of 1.75% plus an annual premium. Unlike conventional PMI, FHA MIP often lasts the life of the loan.

Question 21

What are typical closing costs in Marina?

Accepted Answer

Closing costs generally run 2% to 5% of the loan amount. That includes lender fees, title, escrow, and prepaid items like insurance and property taxes.

Question 22

Can I roll closing costs into my loan?

Accepted Answer

On refinances, sometimes yes. On purchases, you typically can't — but you can negotiate seller credits to cover some costs.

Question 23

What is a mortgage point?

Accepted Answer

One point equals 1% of the loan amount paid upfront to lower your rate. Whether it makes sense depends on how long you plan to keep the loan.

Question 24

What is a VA funding fee?

Accepted Answer

The VA funding fee is a one-time cost paid to the government — typically 1.25% to 3.3% of the loan amount. Disabled veterans are often exempt.

Question 25

What is an ARM loan and when does it make sense?

Accepted Answer

An ARM has a fixed rate for an initial period — say 5 or 7 years — then adjusts annually. It can make sense if you plan to sell or refinance before the fixed period ends.

Question 26

What is a portfolio ARM?

Accepted Answer

A portfolio ARM is held by the lender — not sold to investors. Lenders can bend their own guidelines, which helps non-standard borrowers qualify.

Question 27

What is a bridge loan?

Accepted Answer

A bridge loan taps equity in your current home to fund the next purchase. It's short-term — typically 6 to 12 months — while your first home sells.

Question 28

What is a hard money loan?

Accepted Answer

Hard money loans are asset-based and close fast — sometimes in days. Rates are high, so they're best for fix-and-flip deals or situations where speed matters.

Question 29

What is an interest-only loan?

Accepted Answer

You pay only interest for a set period — usually 5 to 10 years. Monthly payments are lower upfront, but you build no equity during that time.

Question 30

What is a reverse mortgage?

Accepted Answer

A reverse mortgage lets homeowners 62 and older convert equity into cash. No monthly payment is required — the loan is repaid when the home is sold.

Question 31

What is a HELOC?

Accepted Answer

A HELOC is a revolving credit line secured by your home equity. You draw what you need and only pay interest on what you use.

Question 32

What is a construction loan?

Accepted Answer

Construction loans fund new builds in stages as work is completed. Once construction ends, the loan converts to a permanent mortgage or gets refinanced.

Question 33

What is a community mortgage?

Accepted Answer

Community mortgage programs often have flexible income guidelines for low-to-moderate income buyers. They're worth exploring if conventional programs seem out of reach.

Question 34

Can investors get financing for Marina rental properties?

Accepted Answer

Yes. DSCR loans, investor loans, and portfolio ARMs are all available here. We look at property cash flow, not just your personal tax returns.

Question 35

What debt-to-income ratio do lenders want?

Accepted Answer

Most conventional lenders cap DTI at 43% to 50%. FHA can go higher with compensating factors like strong reserves or a large down payment.

Question 36

How do lenders verify employment?

Accepted Answer

Lenders call your employer directly before closing. W-2 borrowers also provide pay stubs and tax returns — self-employed borrowers follow different guidelines.

Question 37

What is a rate lock and how long does it last?

Accepted Answer

A rate lock holds your interest rate for a set period — typically 30 to 60 days. Longer locks cost more but protect you if rates rise before closing.

Question 38

Should I get pre-approved before shopping in Marina?

Accepted Answer

Yes — sellers here expect a pre-approval letter with any offer. Pre-approval also tells you exactly what price range makes sense before you fall in love with a home.

Question 39

How is pre-qualification different from pre-approval?

Accepted Answer

Pre-qualification is a quick estimate based on self-reported info. Pre-approval means a lender has verified your income, credit, and assets — sellers take it seriously.

Question 40

What happens if my appraisal comes in low?

Accepted Answer

You can renegotiate the price, pay the gap in cash, or walk away if your contract has an appraisal contingency. We flag high-risk properties before they get to appraisal.

Marina, CA Mortgage FAQs — Answered by a Real Broker