Grass Valley Mortgage FAQ: Your Questions Answered by Local Nevada County Brokers

Standard loans close in 21-30 days. Bank statement and DSCR loans add 5-10 days for documentation review.

Conventional loans need 620 minimum. FHA accepts 580, but most Grass Valley sellers prefer conventional offers.

Yes, we approve self-employed borrowers using 12 or 24 months of bank statements. No tax returns required.

FHA requires 3.5%, conventional allows 3%. Investment properties need 15-25% depending on loan type.

Properties near Wolf Creek or Deer Creek often require flood insurance. Most hillside homes do not.

W-2 earners need two years tax returns, two pay stubs, and two months bank statements. Self-employed need additional business documentation.

Your total monthly debts cannot exceed 45-50% of gross income. DSCR loans skip personal income entirely.

FHA accepts lower credit scores but charges lifetime mortgage insurance. Conventional drops PMI at 20% equity.

FHA 203(k) loans fund purchase plus repairs in one loan. Standard FHA requires the property to be move-in ready.

Yes, VA loans require no down payment and allow 100% financing. The property must meet VA appraisal standards.

Expect 2-3% of purchase price. Lender fees, title, escrow, and property taxes add up quickly.

Sellers can contribute up to 3% on conventional loans, 6% on FHA. This works best in slower markets.

Points make sense if you keep the loan five years minimum. Most Grass Valley buyers refinance sooner.

Private mortgage insurance costs 0.3-1.5% annually on loans above 80% LTV. Put 20% down or use a piggyback loan to avoid it.

DSCR loans approve based on rental income, not your W-2. The property must generate 1.0x or more rent versus payment.

Yes, conventional loans allow 10% down on second homes. You must intend to occupy it part-time.

Lenders divide your liquid assets by 360 months to calculate qualifying income. Works well for retirees with stock portfolios.

Two years in the same field counts, not necessarily the same employer. Job gaps under six months usually work.

FHA and conventional loans allow gifted down payments from family. The donor signs a gift letter confirming no repayment required.

Conforming loans max at $806,500 in 2024. Above that, you need a jumbo loan with stricter credit and reserve requirements.

Bridge loans let you access equity from your current home for down payment. You carry two mortgages temporarily.

Yes, ITIN loans work for borrowers without Social Security numbers. Rates run 0.5-1% higher than conventional.

We approve 1099 contractors using 12-24 months of deposits. No CPA-prepared P&L required.

Hard money funds quickly for flips or purchases needing heavy repairs. Expect higher rates and short terms.

HELOCs work like credit cards with variable rates. Home equity loans provide lump sums with fixed rates.

Yes, a cash-out or rate-term refi removes their name. You must qualify on income and credit alone.

You pay only interest for 5-10 years, then principal and interest. Monthly payments start low but jump later.

Construction loans fund builds in stages as work completes. You need detailed plans, builder contracts, and 20% down minimum.

FHA, VA, and USDA loans are assumable with lender approval. You must qualify and pay the seller their equity separately.

Homeowners 62+ can convert equity to cash without monthly payments. The loan comes due when you sell or pass away.

Locks protect your rate for 30-60 days during closing. Extending a lock costs extra if your deal delays.

15-year loans save massive interest but double your payment. Most Grass Valley buyers choose 30-year for flexibility.

ARMs offer lower initial rates fixed for 5, 7, or 10 years, then adjust annually. They work if you plan to move soon.

Parts of Nevada County qualify for USDA loans with zero down. Income limits apply based on household size.

Portfolio ARMs come from lenders holding loans instead of selling them. They offer flexibility for unique borrower situations.

Lenders count alimony as income if it continues three years. Child support works the same way with court documentation.

Manufactured homes need permanent foundations to qualify for conventional financing. Title must convert from DMV to real property.

You can negotiate price down, increase down payment, or walk away if contingent. Most deals renegotiate successfully.

Lenders count 0.5-1% of the balance as monthly payment, or your actual payment if higher. Deferment still counts.

FHA allows purchase two years after Chapter 7, four years after Chapter 13 discharge. Conventional needs four years minimum.