Tustin Mortgage FAQ: Your Guide to Home Financing in Orange County

We offer 25+ loan types including Conventional, FHA, VA, USDA, and Jumbo loans. Specialized options include Bank Statement, DSCR, and ITIN loans for unique situations.

You need stable income, acceptable credit, and funds for down payment and closing costs. Specific requirements vary by loan type and lender guidelines.

A conventional loan is not backed by the government. It typically requires a 620+ credit score and 3-20% down payment depending on the program.

FHA loans are government-insured mortgages requiring as little as 3.5% down. They allow lower credit scores, making homeownership more accessible for many buyers.

VA loans are for eligible veterans, active military, and some spouses. They offer zero down payment and no mortgage insurance requirements.

Jumbo loans exceed conforming loan limits set by federal agencies. They're common in Orange County for higher-priced properties and require strong credit.

USDA loans are for eligible rural and suburban areas. Tustin locations may not qualify, but we can check specific property eligibility.

Bank Statement loans use bank deposits to verify income instead of tax returns. They're ideal for self-employed borrowers who write off business expenses.

DSCR loans qualify based on rental income, not personal income. They're perfect for real estate investors purchasing rental properties in Tustin.

ITIN loans serve borrowers without Social Security numbers who have Individual Taxpayer Identification Numbers. Down payment and credit requirements apply.

Yes, we offer 1099 loans designed for independent contractors. These programs use alternative documentation to verify your income history.

Asset Depletion loans use your savings and investments to qualify instead of income. They work well for retirees or high-net-worth individuals.

Down payments range from 0% to 20%+ depending on loan type. FHA requires 3.5%, conventional can be 3%, and VA offers zero down.

Minimum credit scores vary by program, from 500 for some FHA loans to 700+ for Jumbo loans. Higher scores get better rates.

Closing costs typically run 2-5% of the loan amount. They include lender fees, title insurance, appraisal, and escrow charges.

Yes, sellers can contribute toward buyer closing costs. The amount allowed depends on loan type and down payment percentage.

Mortgage insurance protects lenders when down payments are below 20%. FHA and conventional loans require it, but VA loans don't.

Private mortgage insurance drops off conventional loans when you reach 20% equity. You can request removal or it cancels automatically at 22%.

Interest-Only loans let you pay just interest for a set period. They lower initial payments but don't build equity during that time.

Fixed rates stay the same for the loan term. ARMs start lower but can adjust, making them better for short-term ownership. Rates vary by borrower profile.

Portfolio ARMs are adjustable-rate mortgages held by the lender, not sold to investors. They offer more flexible underwriting guidelines.

Bridge loans provide short-term financing between buying and selling properties. They help buyers make non-contingent offers in competitive markets.

Yes, Construction loans and renovation mortgages let you finance both purchase and repairs. Funds are released as work is completed.

A HELOC lets you borrow against home equity as needed, like a credit card. You only pay interest on what you actually use.

Home Equity Loans provide a lump sum with fixed payments. HELOCs offer a credit line you can draw from repeatedly during the draw period.

Reverse Mortgages let homeowners 62+ convert equity to cash without monthly payments. The loan is repaid when you sell or move out.

Foreign National loans serve non-U.S. citizens buying property in Tustin. They typically require larger down payments and use international credit history.

Hard Money loans are short-term, asset-based financing for investors. They fund quickly but have higher rates and shorter terms.

Pre-approval takes 1-3 days. Full approval to closing typically takes 21-45 days depending on loan type and documentation complexity.

Bring recent pay stubs, W-2s, tax returns, bank statements, and ID. Self-employed borrowers may need additional business documentation.

Yes, we offer financing for second homes and investment properties. Requirements differ from primary residence loans, including higher down payments.

Investor loans finance rental properties and investment real estate. They consider property income potential and may allow multiple financed properties.

Most loan programs allow gift funds from family members. You'll need a gift letter stating the funds don't require repayment.

DTI compares monthly debt payments to gross income. Most loans require DTI below 43-50%, though some programs allow higher ratios.

Pre-approval is stronger as it involves verified documentation and credit checks. Pre-qualification is just an estimate without verification.

Yes, refinancing can lower your rate, change terms, or access equity. We offer rate-and-term and cash-out refinance options.

Equity Appreciation loans provide lower payments in exchange for a share of future home value increase. They're alternative financing options.

Community Mortgages offer flexible guidelines to help more borrowers qualify. They may allow higher DTI ratios or alternative credit histories.

Rates vary by borrower profile and market conditions. Contact us for today's rates based on your credit score, loan type, and down payment.

Brokers access multiple lenders and programs, finding the best fit for your situation. We handle the process from application through closing.