Rocklin Mortgage FAQs: Your Questions Answered by Local Brokers

Conventional loans start at 620 credit. FHA accepts 580, and some portfolio lenders go lower with bigger down payments.

FHA requires 3.5%, conventional allows 3%, VA and USDA offer zero down. Jumbo loans typically need 10-20% depending on property price.

FHA allows lower credit and smaller down payments but requires mortgage insurance for life on 3.5% down. Conventional drops PMI at 80% equity and costs less long-term.

You need active duty, veteran status, or eligible surviving spouse designation. VA loans require zero down and skip mortgage insurance entirely.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and profit-loss programs for business owners.

W-2 earners need two years tax returns, 30 days paystubs, 60 days bank statements. Self-employed add business returns and year-to-date profit-loss statements.

Preapproval takes 1-2 days. Full underwriting runs 3-5 weeks from contract to closing with all documents submitted on time.

Expect 2-5% of purchase price. This covers lender fees, title insurance, escrow, appraisal, and prepaid taxes and insurance.

Yes. DSCR loans approve based on rental income, not personal income. We also offer portfolio ARMs and conventional investor programs up to 10 properties.

Jumbo loans exceed conforming limits, currently $766,550 in Placer County. They require stronger credit, bigger down payments, and more reserves than conventional loans.

California offers down payment assistance through CalHFA. Community mortgage programs also provide flexible underwriting for qualifying buyers in targeted areas.

Sellers take preapproved offers seriously because financing risk is vetted. You also know your exact budget before falling for homes you can't afford.

15-year loans save massive interest but double monthly payments. Choose 30-year if you need lower payments or want flexibility to invest elsewhere.

ARMs offer lower rates for 5-10 years, then adjust annually. They fit buyers planning to sell or refinance before adjustment, or those expecting income growth.

Yes. Family members can gift funds with a signed letter confirming no repayment expected. Most loans accept gifts, but VA allows them from non-relatives too.

Private mortgage insurance costs 0.3-1.5% annually when you put less than 20% down on conventional loans. Avoid it with 20% down, VA loans, or piggyback seconds.

Conventional loans max at 50% DTI, FHA allows 55-57% with compensating factors. Calculate all monthly debts divided by gross monthly income.

FHA allows purchases two years after bankruptcy discharge, three years after foreclosure. Conventional requires four and seven years respectively with rebuilt credit.

Debt service coverage ratio loans approve based on property rental income, ignoring borrower income. They work for investors who don't qualify traditionally or own multiple rentals.

Most loans require 2-6 months mortgage payments in reserves. Jumbo and investment properties need more, while FHA and VA often require less.

Locks freeze your rate for 30-60 days during closing. Lock when rates drop to acceptable levels, but know that locks cost more the longer the term.

Yes. Foreign national loans require 20-40% down and don't need US credit or income verification. We offer these through specialized portfolio lenders.

Bridge loans let you buy before selling your current home. They're short-term, higher-rate financing that closes fast when you need immediate funds.

Points cost 1% of loan amount per 0.25% rate reduction. Pay them if you're keeping the loan five-plus years, skip them if refinancing or selling sooner.

ITIN loans serve borrowers without Social Security numbers. They require individual taxpayer ID numbers and typically need larger down payments than conventional loans.

Lenders analyze 12-24 months of business or personal bank deposits to calculate income. This skips tax returns that show lower earnings due to write-offs.

Yes. Rate-term refinances lower payments or shorten terms. Cash-out refinances extract equity for renovations, debt payoff, or investment property down payments.

Portfolio ARMs are adjustable loans held by lenders instead of sold to Fannie or Freddie. They offer flexible underwriting for complex income or credit situations.

Lenders require appraisals on all purchases. Pest inspections are standard in California. Surveys aren't typical unless boundary disputes exist or lender requires them.

You can negotiate price down, pay the difference in cash, or cancel with earnest money returned if you have an appraisal contingency. Some loans allow contested appraisals.

FHA and VA loans are assumable with lender approval. You inherit their rate, which saves money if rates have risen since their loan originated.

You pay only interest for 5-10 years, then principal and interest after. They fit high earners with irregular income or investors maximizing cash flow.

Brokers shop 200+ wholesale lenders to find better rates and programs than single-bank loan officers. We match your situation to the right lender first time.