Colfax Mortgage FAQ: Your Questions Answered by Local Brokers

Standard loans close in 25-35 days if the property appraises cleanly. Rural properties with septic or well inspections add 7-10 days to the timeline.

FHA loans accept 580 scores with 3.5% down. Conventional loans start at 620, but you'll pay lower rates with scores above 700.

Yes. Rural appraisers look at larger geographic areas for comps. Lenders scrutinize septic systems, well water quality, and fire insurance availability more closely.

FHA requires 3.5% down. Conventional loans allow 3% down for qualified first-timers, though you'll pay PMI until you hit 20% equity.

Absolutely. Lenders require a septic inspection and certification before closing. Systems must meet county health department standards.

They require a well flow test and water quality analysis. The lab checks for contaminants and confirms potability meets EPA standards.

Two years of tax returns, two recent pay stubs, and two months of bank statements. Self-employed borrowers need profit and loss statements plus balance sheets.

Yes. Bank Statement Loans use 12-24 months of deposits instead of tax returns. We also offer 1099 Loans and Profit & Loss Statement Loans for business owners.

FHA accepts lower credit scores and smaller down payments but charges mortgage insurance for the loan's life. Conventional loans drop PMI at 20% equity.

Yes. ITIN Loans work for borrowers without Social Security numbers. You'll need larger down payments, typically 15-20%.

Investment properties require 15-25% down depending on the loan type. DSCR Loans qualify you based on rental income, not personal income.

Expect 2-4% of the purchase price. This covers appraisal, title insurance, escrow fees, and lender charges like origination and underwriting.

Each point costs 1% of the loan amount and drops your rate by roughly 0.25%. It makes sense if you'll keep the loan longer than five years.

Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. You avoid it by putting 20% down or using a piggyback second mortgage.

Standard loans won't work if the property fails appraisal for safety issues. Use an FHA 203(k) Loan or Conventional Renovation Loan for properties needing repairs.

Debt Service Coverage Ratio Loans qualify based on rental income versus mortgage payment. Investors use them to avoid showing W-2 income or tax returns.

Yes. Foreign National Loans don't require U.S. credit history or Social Security numbers. Expect 30-40% down and higher interest rates.

VA Loans require zero down payment and charge no PMI. They're available to qualifying veterans, active military, and eligible spouses.

ARMs start with lower fixed rates for 3, 5, 7, or 10 years, then adjust annually. They make sense if you'll sell or refinance before adjustment.

Colfax qualifies for USDA Rural Development Loans requiring zero down. Income limits apply—check current thresholds for Placer County before applying.

Jumbo Loans exceed conforming limits of $806,500 in Placer County. They require stronger credit, lower debt ratios, and larger reserves than conventional loans.

Bridge Loans let you use your current home's equity as down payment on the new property. You'll carry two mortgages until the old house sells.

Interest-Only Loans let you pay just interest for 5-10 years, lowering payments initially. Principal payments kick in later, increasing monthly costs significantly.

Yes. HELOCs and Home Equity Loans let you borrow against equity while keeping your first mortgage. HELOCs work like credit cards with variable rates.

Bank Statement Loans use 12-24 months of deposits to prove income instead of tax returns. They're designed for self-employed borrowers who write off significant expenses.

Hard Money Loans fund in days based on property value, not your income or credit. Rates run 8-12% with short 12-36 month terms for flips or quick purchases.

Reserves are liquid assets covering 2-12 months of mortgage payments. Investment properties and jumbo loans require larger reserves than primary residence purchases.

Properties in Wildland-Urban Interface zones face stricter underwriting. Lenders verify you can secure fire insurance—sometimes requiring surplus or FAIR Plan coverage.

Yes, if you'll occupy the residential portion. Lenders limit commercial space to 49% of total square footage. The property must appraise as residential with commercial component.

Asset Depletion Loans divide your investment accounts by 360 months to calculate qualifying income. Retirees with significant assets but low tax returns use them.

Construction Loans release funds in draws as work completes. You'll need detailed plans, licensed contractors, and 20-25% down before breaking ground.

Portfolio ARMs are held by the lender instead of sold to Fannie Mae. They offer more flexible underwriting for unique properties or borrower situations.

Yes, and you should. Pre-approval verifies income, assets, and credit upfront. Sellers take offers seriously when backed by full underwriting, not just pre-qualification.

Appraisers consider access issues during winter, distance from services, and comparable sales at similar elevations. Hillside lots may require additional engineering reviews.

Jumbo rates typically run 0.25-0.75% higher than conforming loans. Rates vary by borrower profile and market conditions based on credit score and down payment size.