Palm Springs Mortgage FAQ - Your Complete Home Financing Guide

We offer 25+ loan programs including Conventional, FHA, VA, USDA, Jumbo, and specialty options. Self-employed buyers can use Bank Statement Loans or 1099 Loans. Investors have access to DSCR and Hard Money Loans.

You need stable income, adequate credit, and funds for down payment and closing costs. Rates vary by borrower profile and market conditions. Minimum requirements differ by loan type.

FHA loans accept scores as low as 580. Conventional loans typically require 620 or higher. Better credit scores qualify for lower interest rates.

Down payments range from 0% to 20% depending on loan type. VA and USDA loans offer zero down. FHA requires 3.5%, while conventional loans start at 3%.

Conventional loans are not government-backed and follow Fannie Mae or Freddie Mac guidelines. They offer competitive rates and require as little as 3% down for qualified buyers.

FHA loans work well for first-time buyers with lower credit scores or smaller down payments. They require mortgage insurance but have flexible qualification standards.

VA loans offer zero down payment and no mortgage insurance for eligible veterans and service members. They typically have lower interest rates and flexible credit requirements.

USDA loans are available for eligible rural and suburban areas in Riverside County. They offer zero down payment for qualified moderate-income buyers.

Jumbo loans exceed conventional loan limits for higher-priced properties. They typically require larger down payments and stronger credit profiles.

ARMs start with a lower fixed rate for a set period, then adjust periodically. They can save money if you plan to sell or refinance before adjustment.

Bank Statement Loans help self-employed buyers qualify using bank deposits instead of tax returns. Lenders review 12-24 months of statements to verify income.

1099 Loans are designed for independent contractors and gig workers. Income is verified through 1099 forms rather than traditional W-2 documentation.

DSCR Loans are for real estate investors and qualify based on property rental income. Your personal income doesn't factor into approval, only the property's cash flow.

Yes, Foreign National Loans are available for non-U.S. citizens purchasing property. They typically require larger down payments and have specific documentation requirements.

ITIN Loans help borrowers without Social Security numbers qualify using an Individual Taxpayer Identification Number. They're available for various property types in Palm Springs.

Bridge Loans provide short-term financing when buying before selling your current home. They bridge the gap between purchase and sale of existing property.

Hard Money Loans are short-term, asset-based financing for investors and fix-and-flip projects. Approval focuses on property value rather than borrower credit.

Interest-Only Loans lower initial payments by deferring principal for a set period. They suit buyers expecting income growth or planning short-term ownership.

Closing costs typically range from 2% to 5% of the loan amount. They include appraisal, title insurance, origination fees, and prepaid taxes and insurance.

PMI is required on conventional loans with less than 20% down payment. It protects the lender if you default and can be removed once equity reaches 20%.

Most loans close within 30 to 45 days. Pre-approval takes 1-3 days. Timeline varies based on loan type and documentation completeness.

Pre-qualification is an estimate based on self-reported information. Pre-approval involves full documentation review and gives you stronger negotiating power with sellers.

Yes, Investor Loans and DSCR Loans are specifically designed for rental properties. Down payment requirements are typically higher than primary residence loans.

Standard documents include pay stubs, W-2s, tax returns, bank statements, and identification. Self-employed borrowers may need additional profit and loss statements.

Rates vary by borrower profile and market conditions. Government loans like FHA and VA often have competitive rates. Jumbo and investor loans typically have higher rates.

A Home Equity Line of Credit lets you borrow against your home's equity as needed. It works like a credit card with a revolving credit line.

Home Equity Loans provide a lump sum with fixed payments. HELOCs offer flexible access to funds with variable rates and interest-only payment options.

Reverse Mortgages allow homeowners 62 and older to convert home equity into cash. No monthly payments are required while living in the home.

Yes, refinancing can lower your rate, reduce payments, or access equity. Options include rate-and-term refinancing or cash-out refinancing for various needs.

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

Inspections aren't required but are strongly recommended to identify potential issues. They protect your investment and can help negotiate repairs or price adjustments.

Escrow accounts hold funds for property taxes and insurance. Your lender collects monthly portions with your mortgage payment and pays bills when due.

Yes, rate locks protect you from increases during the loan process. Lock periods typically last 30 to 60 days and may have associated fees.

Points are upfront fees to reduce your interest rate. One point equals 1% of the loan amount and typically lowers the rate by 0.25%.

Community Mortgages offer flexible terms for eligible buyers. They may include down payment assistance or relaxed qualification criteria for specific communities or professions.

Construction Loans finance building or major renovation projects. They convert to permanent mortgages once construction is complete, simplifying the financing process.

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

Asset Depletion Loans qualify borrowers based on liquid assets rather than income. They're ideal for retirees or those with substantial savings but limited income documentation.

Portfolio ARMs are held by lenders rather than sold to investors. They offer more flexible terms and underwriting for unique borrower situations.

Equity Appreciation Loans allow lenders to share in future home value increases. They can offer lower rates or payments in exchange for appreciation participation.