Auburn Mortgage FAQs: Your Gold Country Home Financing Questions Answered

Most Auburn purchases close in 30 days with complete documentation. Rural properties with well or septic can add 5-10 days for inspections and appraisals.

Steep slopes or fire zones require specialized insurance, which lenders verify before closing. Some properties need geotechnical reports if built on significant grades.

Conventional loans start at 620. FHA accepts 580 with 3.5% down, though most Auburn sellers prefer conventional offers in competitive situations.

California offers statewide programs like CalHFA. Placer County occasionally has targeted assistance, but availability changes frequently based on funding.

Anything above $806,500 in 2024 requires jumbo financing. Many Auburn homes near Old Town and Sunset neighborhoods fall into this range.

Yes, but VA limits properties to those primarily residential. Working ranches or commercial ag operations won't qualify even if you live there.

USDA covers eligible rural areas outside city limits with zero down for qualified buyers. Many Auburn outskirt properties qualify, but income limits apply.

Two years tax returns, two months bank statements, 30 days pay stubs, and W-2s. Self-employed borrowers need full business returns.

Plan for 2-3% of purchase price. This covers lender fees, title insurance, escrow, and prepaid property taxes and homeowners insurance.

Properties with wells need water tests and flow certifications. Septic systems require inspection and county clearance before lenders fund.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we verified income, assets, and credit through documentation.

Investment properties typically require 15-25% down depending on loan type. Single-family rentals get better terms than multi-unit buildings.

Traditional loans average two years of tax returns. Bank statement programs use 12-24 months of deposits, better for write-off-heavy businesses.

DSCR loans qualify based on rental income, not your W-2. They work well for Airbnb properties in Auburn's tourist areas near Old Town.

Yes, 1099 loans use your gross contract income before business deductions. You need 12-24 months of consistent 1099 earnings.

Conventional typically offers lowest rates. FHA runs slightly higher, while investor and non-QM loans add 1-3% depending on risk factors.

Private mortgage insurance applies to conventional loans under 20% down. It costs 0.3-1.5% annually until you reach 20% equity.

15-year loans save massive interest but monthly payments run 50% higher. Most Auburn buyers choose 30-year for payment flexibility.

ARMs offer lower initial rates fixed for 5, 7, or 10 years, then adjust annually. They make sense if you'll move before adjustment.

Yes, from family members with a signed gift letter stating no repayment expected. Lenders verify the transfer into your account.

You can renegotiate price, bring extra cash to cover the gap, or cancel under appraisal contingency. Low appraisals happen with rapid appreciation.

Lenders don't require it, but Auburn sits near fault zones. Most buyers add earthquake coverage separately from standard homeowners policies.

Properties in high fire zones face higher premiums or require California FAIR Plan coverage. Lenders verify adequate insurance before funding.

FHA 203(k) and conventional renovation loans let you finance purchase plus repairs. Hard money works for investors who'll refinance after rehab.

Bridge loans let you buy before selling your current home. They work for Auburn buyers competing in tight inventory without sale contingencies.

HELOCs carry variable rates currently higher than fixed-rate mortgages. They work better for intermittent access to equity versus one-time cash needs.

Yes, through Foreign National programs requiring 30-40% down. You don't need US credit history but rates run higher than citizen loans.

ITIN loans serve borrowers without Social Security numbers using tax ID numbers. Requirements match standard loans but lender selection is limited.

Construction loans fund in draws as work completes, converting to permanent mortgages when finished. You need detailed plans, builder contracts, and budgets.

Asset depletion qualifies you using investment accounts divided by loan term. Retirees with portfolio income but low tax returns benefit most.

Each point costs 1% of loan amount and drops rate roughly 0.25%. It makes sense if you'll keep the loan past break-even, typically 4-6 years.

Most programs allow 43-50% DTI including your new mortgage payment. Higher ratios need compensating factors like excellent credit or large reserves.

You can request removal at 20% equity with new appraisal. It automatically cancels at 22% based on original value under federal law.

Interest rate is what you pay on the principal. APR includes fees and costs, showing true borrowing cost for comparison shopping.

We regularly close in 21 days with responsive borrowers and clean files. Rush closings under 15 days work when all parties coordinate aggressively.

Yes, if the mobile home is permanently affixed to owned land. Manufactured homes in parks require specialized lenders with different terms.

Lenders want larger reserves and sometimes higher credit scores. DSCR loans skip personal income verification entirely, qualifying on rental cash flow.

Rate locks typically last 30-60 days from approval. If closing delays past lock expiration, you might relock at current rates.

Most conventional and jumbo loans aren't assumable. FHA and VA loans allow assumptions with lender approval, potentially saving on rates.

We run your scenario through our wholesale network comparing rates, fees, and underwriting flexibility. You get options matched to your specific situation and property type.