Lincoln Mortgage FAQ: Your Questions Answered by Local Brokers

Most lenders cap your total debt at 43-50% of gross income, so roughly $3,600-$4,200 monthly for all debts. With current rates, that supports a $450k-$550k purchase depending on down payment and other debts.

FHA loans accept 580 credit scores with 3.5% down. Conventional loans start at 620, though you'll get better rates at 680 or higher.

Purchase loans close in 21-30 days typically. Refinances run faster at 15-25 days since there's no purchase contract deadline.

Waiting costs you in rent and potential rate increases. If you plan to stay 5+ years, buying now usually beats timing the market.

Older developments near Highway 65 cost less per square foot than new builds west of Joiner Parkway. You trade newer finishes for lower purchase price and property taxes.

No. Conventional loans require PMI under 20% down, but FHA and VA loans use different structures. Some portfolio lenders offer lender-paid PMI with higher rates.

Two years of tax returns, two recent pay stubs, two months of bank statements, and photo ID. Self-employed borrowers need business bank statements or P&L statements depending on loan type.

VA loans require zero down for eligible veterans. USDA loans may work in rural parts of Placer County but not in Lincoln proper.

FHA allows lower credit scores and smaller down payments but charges upfront and monthly mortgage insurance. Conventional loans offer better rates for strong credit and disappearing PMI.

Expect 2-3% of the purchase price for closing costs, plus your down payment. On a $500k home, that's $10k-$15k in fees before down payment.

Yes. Most loan programs allow down payment gifts from family members with a gift letter confirming no repayment required.

DSCR loans approve based on rental income instead of personal income. They work for investors buying Lincoln rental properties who don't want to document W-2 or 1099 income.

Lenders analyze 12-24 months of business bank deposits to calculate income. You skip tax returns entirely, which helps if you write off significant business expenses.

Fifteen-year loans save massive interest but double your monthly payment. Choose 30-year if you want flexibility, then pay extra when cash flow allows.

Each point costs 1% of the loan amount and reduces your rate by roughly 0.25%. Buy points if you're keeping the loan 5+ years; otherwise take the higher rate.

Not on purchases — you can't borrow more than the home's value. On refinances, you can roll costs in if you have enough equity.

Most jumbo lenders want 10-20% down depending on credit score and reserves. Rates vary by borrower profile and market conditions.

ARMs offer lower initial rates that adjust after a fixed period, typically 5, 7, or 10 years. They make sense if you plan to sell or refinance before adjustment.

Yes. FHA 203k loans finance both purchase and renovation in one mortgage, but require detailed contractor bids and inspection reports upfront.

With 20% down and minimal other debt, you need roughly $130k-$150k household income. More debt or smaller down payment increases that requirement.

Most Lincoln properties sit outside FEMA flood zones. Your lender orders a flood certification during underwriting to confirm requirements.

Yes. Lenders count either your actual payment or 0.5-1% of the balance monthly, whichever shows on your credit report.

Pre-qualification estimates what you might afford based on stated information. Pre-approval verifies income, credit, and assets — it's what sellers want to see.

FHA allows purchases two years after Chapter 7 discharge, four years after Chapter 13. Conventional loans require four years for Chapter 7, two for Chapter 13.

Absolutely. 1099 loans calculate income from your 1099 forms without requiring full tax returns, which speeds up approval for contract workers and freelancers.

ITIN loans serve borrowers without Social Security numbers who file taxes with an Individual Taxpayer Identification Number. You need 12-24 months of on-time rent or mortgage history.

If you're under contract, lock immediately. Rates move daily and most locks last 30-45 days, which covers a standard closing timeline.

Conventional loans allow 10% down on second homes if you have strong credit and verify the property won't be a rental. Investment properties need 15-25% down minimum.

Asset depletion calculates income by dividing investment accounts by 360 months. It works for retirees or investors with liquid assets but low reported income.

You pay only interest for 5-10 years, then payments jump when principal amortization starts. They help investors maximize cash flow or buyers expecting income growth.

Yes. Foreign national loans require larger down payments, typically 30-40%, and charge slightly higher rates since borrowers lack U.S. credit history.

Portfolio ARMs come from lenders who hold loans instead of selling them, allowing flexible underwriting. They help borrowers with complex income or credit situations.

Hard money lenders close in 7-14 days based primarily on property value. Rates run 9-12% with short terms, so they're for fix-and-flip or bridge situations only.

Construction loans fund in stages as building progresses. You pay interest only during construction, then convert to a standard mortgage when the home is complete.

Yes. HELOCs provide flexible access to equity for down payments, though lenders count the payment in your debt ratio even if you haven't drawn funds.

Brokers shop 200+ lenders to find better rates and programs that fit unusual situations. Banks only offer their own products, which limits options for self-employed or investor borrowers.