Folsom Mortgage FAQs: Your Complete Guide to Home Financing in Sacramento County

Minimum credit scores vary by loan type. FHA loans may accept scores as low as 580 with 3.5% down, while conventional loans typically require 620 or higher. Higher scores generally qualify for better rates.

Down payments range from 0% for VA and USDA loans to 3% for some conventional programs. FHA loans require 3.5% minimum. Larger down payments often result in lower monthly payments and better terms.

SRK Capital offers 25+ loan programs including conventional, FHA, VA, jumbo, bank statement, DSCR, and more. We match your financial situation with the best loan option for your Folsom purchase.

Most purchase loans close in 21-45 days. Timeline depends on loan type, property appraisal, documentation completeness, and lender workload. Cash-out refinances may take slightly longer.

Standard documents include two years of tax returns, recent pay stubs, bank statements, W-2s, and ID. Self-employed buyers may provide profit and loss statements or use bank statement loans for alternative documentation.

Yes, we offer investor loans including DSCR loans that qualify based on rental income rather than personal income. Investment properties typically require 15-25% down depending on the loan program.

Closing costs typically range from 2-5% of the purchase price. These include lender fees, title insurance, escrow fees, appraisal, and prepaid items like property taxes and insurance.

Fixed-rate mortgages offer payment stability over 15-30 years. ARMs start with lower rates that adjust after an initial period, which may benefit buyers planning shorter homeownership or expecting income increases.

Private Mortgage Insurance protects lenders when down payments are below 20% on conventional loans. PMI costs vary based on loan amount, credit score, and down payment size. It can be removed once you reach 20% equity.

Yes, self-employed buyers have multiple options. Bank statement loans, 1099 loans, and profit and loss statement loans allow qualification using alternative income documentation beyond traditional tax returns.

Jumbo loans exceed conforming loan limits set by Fannie Mae and Freddie Mac. In Sacramento County, loans above these limits require jumbo financing, often with larger down payments and stricter qualifications.

FHA loans allow lower credit scores and smaller down payments but require mortgage insurance for the loan's life. Conventional loans offer more flexibility, no upfront insurance premium, and removable PMI.

Debt Service Coverage Ratio loans qualify investment properties based on rental income rather than borrower income. These work well for real estate investors who may not show sufficient personal income on tax returns.

VA loans offer eligible veterans 0% down payment, no PMI, competitive rates, and limited closing costs. These benefits make homeownership more accessible for military families in Sacramento County.

Asset depletion loans qualify borrowers based on savings, investments, or retirement accounts rather than employment income. A percentage of total assets is calculated as monthly income for qualification purposes.

Discount points let you prepay interest to reduce your rate. Each point costs 1% of the loan amount. Points make sense if you plan to keep the loan long enough to recoup the upfront cost through monthly savings.

Yes, ITIN loans allow foreign nationals and non-citizens to purchase Folsom properties using an Individual Taxpayer Identification Number. Requirements include larger down payments and alternative documentation.

Bridge loans provide short-term financing to purchase a new home before selling your current one. These loans typically last 6-12 months and help avoid contingent offers in competitive markets.

Interest-only loans allow you to pay only interest for an initial period, typically 5-10 years. Monthly payments are lower initially but increase when principal payments begin. These suit buyers expecting future income growth.

A Home Equity Line of Credit lets you borrow against your home's equity as needed. You draw funds during a 10-year period and repay over 20 years, using only what you need when you need it.

Yes, refinancing can lower your rate, shorten your term, or access equity through cash-out refinancing. Rate-and-term refinances may require less equity than cash-out options. Rates vary by borrower profile and market conditions.

Rates vary by borrower profile and market conditions. Factors include credit score, loan type, down payment size, and property type. Contact SRK Capital for current rates specific to your situation.

Most purchase loans require a professional appraisal to confirm property value. Some refinances may qualify for appraisal waivers based on loan-to-value ratio, loan type, and automated valuation models.

DTI compares monthly debt payments to gross income. Most loans require DTI below 43-50%, though some programs allow higher ratios. Lower DTI generally improves loan approval odds and available rates.

Yes, co-borrowers combine income and credit to qualify. Both parties are equally responsible for the mortgage. This strategy helps buyers afford more or qualify when individual income is insufficient.

Missing payments damages credit and may trigger late fees. After 30 days, lenders report delinquency. Continued non-payment can lead to foreclosure. Contact your lender immediately if you face payment difficulties.

California offers down payment assistance and special programs for first-time buyers. These may include grants, deferred loans, or favorable terms. Eligibility depends on income limits and property location.

Escrow is a neutral third party holding funds and documents until all conditions are met. In Sacramento County, escrow companies coordinate with lenders, title companies, and agents to ensure smooth property transfers.

Pre-approval strengthens your offer and shows sellers you're a serious buyer. Lenders review credit, income, and assets to determine your buying power. Pre-approval typically lasts 60-90 days.

Title insurance protects against ownership disputes, liens, or defects in property title. Buyers purchase owner's policies at closing, while lenders require separate lender's policies to protect their interests.

California property taxes are approximately 1% of assessed value plus local bonds and assessments. Sacramento County collects taxes semi-annually. Your mortgage servicer may collect monthly through escrow accounts for easier budgeting.

Closing involves signing loan documents, transferring funds, and receiving keys. You'll review the closing disclosure, pay remaining costs, and sign the promissory note and deed of trust finalizing your purchase.

Rate locks guarantee your rate for 30-60 days during loan processing. Lock when you're satisfied with the rate and confident you'll close within the lock period. Extended locks may cost extra.

Low appraisals create a gap between contract price and loan amount. Options include negotiating price reduction, paying the difference in cash, disputing the appraisal, or canceling the contract per contingency terms.

Yes, lenders require homeowners insurance to protect the property. Policies must cover dwelling replacement cost. Sacramento County location may affect premiums. Shop multiple insurers before closing for competitive rates.