Garden Grove Mortgage FAQ: Your Complete Guide to Home Loans in Orange County

We offer 25+ loan types including Conventional, FHA, VA, Jumbo, and specialized programs. Options exist for W-2 employees, self-employed, and investors. Rates vary by borrower profile and market conditions.

Down payments range from 0% to 20% depending on loan type. VA and USDA loans offer zero down. Conventional loans typically require 3-20% down.

Minimum scores vary by loan program. FHA loans accept scores as low as 580. Conventional loans typically require 620 or higher for best rates.

A Conventional Loan is not government-backed and follows Fannie Mae or Freddie Mac guidelines. It typically requires good credit and 3-20% down. Rates vary by borrower profile and market conditions.

FHA Loans are government-insured and allow lower credit scores and down payments. You can put down as little as 3.5%. They require mortgage insurance.

VA Loans help veterans and active military buy homes with zero down payment. They offer competitive rates and no mortgage insurance. You must meet service requirements.

Jumbo Loans exceed conforming loan limits set by federal agencies. They typically require larger down payments and higher credit scores. Rates vary by borrower profile and market conditions.

USDA Loans offer zero down payment for eligible rural and suburban properties. They have income limits and property location requirements. Not all Garden Grove areas qualify.

Bank Statement Loans help self-employed borrowers qualify using bank deposits instead of tax returns. Typically require 12-24 months of statements. Great for business owners.

DSCR Loans are for investment properties based on rental income, not personal income. No tax returns or pay stubs needed. Ideal for real estate investors.

ITIN Loans serve borrowers without Social Security numbers who have tax ID numbers. They allow non-citizens to purchase homes. Various down payment options available.

Bridge Loans provide short-term financing between buying and selling properties. They help you purchase before your current home sells. Terms typically last 6-12 months.

A HELOC lets you borrow against your home equity as needed. It works like a credit card with a revolving credit line. Rates vary by borrower profile and market conditions.

Reverse Mortgages allow homeowners 62+ to convert equity into cash. You remain in your home without monthly payments. The loan is repaid when you sell or move.

Closing costs typically run 2-5% of the purchase price. They include lender fees, title insurance, and escrow charges. Your lender provides a detailed estimate upfront.

Pre-approval takes 1-3 days with complete documentation. Full approval and closing typically take 30-45 days. Timeline varies by loan type and complexity.

You need ID, income proof, bank statements, and employment verification. Self-employed borrowers may need tax returns or bank statements. Requirements vary by loan program.

Yes, we offer multiple programs for self-employed borrowers. Bank Statement and 1099 Loans use alternative income documentation. Profit & Loss Statement Loans are also available.

1099 Loans help independent contractors qualify using 1099 income forms. They avoid complex tax return analysis. Ideal for gig workers and freelancers.

Asset Depletion Loans qualify you based on assets rather than income. Banks calculate monthly income from your investment accounts. Perfect for retirees or high-net-worth individuals.

Portfolio ARMs are adjustable-rate mortgages held by the lender, not sold. They offer flexible guidelines for unique situations. Rates adjust periodically after an initial fixed period.

ARMs have interest rates that change periodically based on market conditions. They typically start lower than fixed rates. Rates vary by borrower profile and market conditions.

Fixed rates provide payment stability for the loan term. ARMs offer lower initial rates but can adjust later. Choose based on how long you plan to stay.

Interest-Only Loans let you pay just interest for a set period. Principal payments begin later, increasing monthly costs. They help with short-term cash flow management.

Mortgage insurance protects lenders if you default on your loan. It's required for conventional loans with less than 20% down. FHA loans require it regardless of down payment.

Put down 20% or more on a conventional loan to avoid PMI. VA loans never require mortgage insurance. Some lenders offer lender-paid options with higher rates.

Foreign National Loans help non-U.S. citizens purchase property here. They don't require U.S. credit history or Social Security numbers. Larger down payments are typically needed.

Yes, we offer Investor Loans and DSCR Loans for rental properties. Down payments typically start at 15-25%. Qualification focuses on property income potential.

Hard Money Loans are short-term, asset-based financing for quick purchases or renovations. They focus on property value, not credit. Rates are higher than traditional mortgages.

Construction Loans finance building new homes or major renovations. Funds are released in stages as work progresses. They convert to permanent mortgages after completion.

Community Mortgages offer flexible guidelines for underserved borrowers. They may allow lower down payments or credit scores. These programs help increase homeownership access.

Yes, refinancing can lower your rate or access equity. Options include rate-and-term or cash-out refinances. Rates vary by borrower profile and market conditions.

P&L Loans use profit and loss statements prepared by your accountant for qualification. They're ideal for self-employed borrowers with complex tax situations. No full tax returns needed.

DTI compares your monthly debts to gross income. Most loans require DTI below 43-50%. Lower ratios help you qualify for better rates and terms.

PMI protects lenders when you put down less than 20% on conventional loans. You pay monthly premiums added to your mortgage payment. It can be removed once you reach 20% equity.

Yes, several programs offer down payment assistance and reduced rates. FHA loans are popular with first-timers requiring only 3.5% down. We help identify programs you qualify for.

Equity Appreciation Loans provide financing where the lender shares in future home value gains. They offer flexible terms in exchange for appreciation participation. Less common than traditional mortgages.

Submit an application with income, asset, and credit documentation to your lender. We review your finances and issue a pre-approval letter. This strengthens your offers to sellers.

Credit score, down payment, loan type, and term all impact your rate. Market conditions and property type also matter. Rates vary by borrower profile and market conditions.

Yes, you can buy duplexes, triplexes, and fourplexes with various loan types. FHA and conventional loans allow owner-occupied multi-units. Investor loans work for non-owner-occupied properties.