Fullerton Mortgage FAQs - Your Orange County Home Financing Guide

We offer 25+ loan programs including Conventional, FHA, VA, USDA, Jumbo, and specialized options. Programs include Bank Statement Loans, DSCR Loans, and ITIN Loans for diverse borrower needs.

Down payment requirements vary by loan type. FHA loans require as little as 3.5% down, while Conventional loans can start at 3%. VA and USDA loans may require zero down payment.

Credit score requirements vary by loan program. FHA loans may accept scores as low as 580, while Conventional loans typically require 620 or higher.

A Conventional Loan is not backed by the government and typically requires good credit. It offers competitive rates and flexible terms for qualified borrowers. Down payments start at 3% for first-time buyers.

FHA Loans are government-insured mortgages with lower down payment and credit requirements. They require mortgage insurance and are ideal for first-time buyers. Down payments can be as low as 3.5%.

VA Loans are available to military members, veterans, and eligible spouses. They offer zero down payment, no mortgage insurance, and competitive rates. Rates vary by borrower profile and market conditions.

Jumbo Loans exceed conforming loan limits set by Fannie Mae and Freddie Mac. They typically require larger down payments and higher credit scores. Ideal for higher-priced Fullerton properties.

USDA Loans offer zero down payment for eligible rural and suburban properties. They require no mortgage insurance upfront and have income limits. Check if your Fullerton area qualifies.

Bank Statement Loans use bank deposits to verify income instead of tax returns. They're ideal for self-employed borrowers and business owners. Typically require 12-24 months of bank statements.

DSCR Loans are for investment properties based on rental income, not personal income. Debt Service Coverage Ratio determines eligibility. No tax returns or employment verification required.

Bridge Loans provide short-term financing when buying before selling your current home. They help bridge the gap between purchase and sale. Terms typically range from 6-12 months.

Closing costs typically range from 2-5% of the loan amount. They include appraisal, title insurance, escrow fees, and lender charges. Some loan programs allow seller-paid closing costs.

Pre-approval can take 1-3 days with proper documentation. Full loan approval and closing typically takes 30-45 days. Timeline varies based on loan type and complexity.

You'll need pay stubs, tax returns, bank statements, and employment verification. Self-employed borrowers may need additional documentation. Specific requirements vary by loan program.

Yes, we offer multiple programs for self-employed buyers. Options include Bank Statement Loans, 1099 Loans, and Profit & Loss Statement Loans. Each has different documentation requirements.

1099 Loans are designed for independent contractors and gig workers. They use 1099 income forms instead of W-2s for qualification. Great alternative to traditional income verification.

ITIN Loans are for borrowers without a Social Security Number. They use an Individual Taxpayer Identification Number instead. Documentation and down payment requirements may be higher.

Foreign National Loans help non-U.S. citizens purchase property in Fullerton. No U.S. credit history required. Typically require larger down payments and use international documentation.

A Home Equity Line of Credit lets you borrow against your home equity. It works like a credit card with a revolving limit. Interest rates are typically variable.

Home Equity Loans provide a lump sum using your home equity as collateral. They feature fixed rates and predictable monthly payments. Also called second mortgages.

ARMs have interest rates that adjust periodically based on market indexes. They often start with lower rates than fixed mortgages. Rates vary by borrower profile and market conditions.

Interest-Only Loans allow you to pay just interest for a set period. Principal payments begin after the interest-only period ends. This can lower initial monthly payments significantly.

Asset Depletion Loans qualify borrowers based on liquid assets, not income. Assets are divided over the loan term to calculate qualifying income. Ideal for retirees or asset-rich borrowers.

Hard Money Loans are short-term, asset-based financing options. They're secured by property value rather than credit or income. Often used for fix-and-flip projects or quick closings.

Reverse Mortgages allow homeowners 62+ to convert home equity into cash. No monthly mortgage payments are required. Loan is repaid when you sell or move out.

Construction Loans finance the building of a new home in Fullerton. Funds are disbursed in stages as construction progresses. They typically convert to permanent mortgages after completion.

PMI is required on Conventional Loans with less than 20% down payment. It protects the lender if you default on the loan. PMI can be removed once you reach 20% equity.

Yes, we offer Investor Loans and DSCR Loans for rental properties. Investment properties typically require larger down payments. Qualification may differ from primary residence loans.

Conforming Loans meet standards set by Fannie Mae and Freddie Mac. They have loan limits that vary by county. They typically offer competitive rates and favorable terms.

Community Mortgages offer flexible qualification for underserved borrowers. They may allow for lower down payments and alternative credit. Designed to expand homeownership opportunities in Fullerton.

Property taxes in Orange County are approximately 1.1% of assessed value annually. They're included in your monthly mortgage payment through an escrow account. Taxes help fund local schools and services.

Yes, pre-approval shows sellers you're a serious buyer with financing ready. It gives you a clear budget and strengthens your offer. Pre-approval takes just a few days.

DTI compares your monthly debt payments to your gross monthly income. Most loans require a DTI of 43% or lower. Some programs allow higher ratios with compensating factors.

Yes, refinancing can lower your rate, change your term, or access equity. We offer rate-and-term and cash-out refinance options. Rates vary by borrower profile and market conditions.

LTV compares your loan amount to the property's value. Lower LTV ratios typically result in better rates and terms. LTV affects whether you need mortgage insurance.

Yes, several programs offer benefits for first-time buyers. FHA, VA, and some Conventional loans offer low down payments. Check for state and local assistance programs too.

An appraisal determines the property's market value. Lenders require it to ensure the home is worth the loan amount. It protects both you and the lender from overpaying.

Yes, you can lock your rate for a specific period during your loan process. Rate locks typically last 30-60 days. This protects you from rate increases before closing.

At closing, you sign final documents and pay closing costs. You receive keys and become the official homeowner. The entire process usually takes 1-2 hours.

Improve your credit score, reduce debt, and save for a larger down payment. Avoid major purchases before applying and maintain stable employment. Provide complete, accurate documentation promptly.