Hollister Mortgage FAQ: Get Straight Answers from Local Brokers

FHA loans start at 580, conventional at 620. Self-employed borrowers using bank statements typically need 660+ for competitive rates.

FHA requires 3.5%, conventional allows 3% for first-time buyers. Investment properties need 15-25% depending on the loan type.

Purchase loans close in 21-30 days with clean documentation. Bank statement and 1099 loans add 5-7 days for manual underwriting.

No, but local brokers understand San Benito County appraisals and septic requirements. We work with escrow companies familiar with rural property closings.

Most of Hollister proper doesn't qualify as rural. Properties east of Fairview and south of Highway 25 may be eligible.

W-2s, two months of pay stubs, two years tax returns, 60 days bank statements. Self-employed borrowers add business returns and P&Ls.

Lenders use 12-24 months of deposits to calculate income. Expect rates 0.5-1% higher than conventional with 10-15% down.

Expect 2-3% of purchase price covering title, escrow, appraisal, and lender fees. Add another $1,200-1,500 for well and septic inspections on rural properties.

Makes sense if you're keeping the loan 5+ years. One point costs 1% of loan amount and drops rate about 0.25%.

Private mortgage insurance costs 0.3-1.5% annually with under 20% down. Avoid it by hitting 20% down or using piggyback second loans.

Yes, conventional investor loans allow 15% down on single-family rentals. Expect rates 0.5-0.75% higher than owner-occupied mortgages.

They work well for investors buying turnkey rentals. Lenders approve based on rent-to-payment ratio, ignoring your personal income completely.

FHA allows lower credit and smaller down payments but charges lifetime mortgage insurance. Conventional drops PMI at 78% loan-to-value and offers better rates above 680 credit.

Loans above $806,500 are jumbo in 2025. Expect stricter credit requirements and higher rates starting around 5.75-6.5% depending on profile.

Yes, eligible veterans can finance 100% on purchases up to $806,500 with no PMI. Properties must meet VA appraisal standards including septic and well inspections.

ARMs offer lower initial rates fixed for 5-10 years, then adjust annually. They work if you're selling or refinancing before adjustment or rates are dropping.

Both serve self-employed borrowers. 1099 loans use contractor income statements while bank statement programs calculate deposits minus typical business expenses.

Yes, ITIN loans require 15-20% down and proof of 2+ years employment. Rates run 0.75-1.5% higher than conventional mortgages.

Bridge loans let you buy before selling your current home. They're expensive short-term solutions when you can't qualify carrying both mortgages simultaneously.

They work for quick purchases needing major renovation. Expect 8-12% rates, 2-4 points upfront, and 6-12 month terms with asset-based approval.

HELOCs are revolving credit lines with variable rates. Home equity loans are fixed-rate lump sums, better when rates are rising.

Yes, second mortgages and HELOCs preserve your first mortgage. Expect rates 2-4% higher than current first mortgage rates.

Retirees and investors with large portfolios use this. Lenders divide total assets by 360 months to calculate qualifying income without employment.

You draw funds in stages as work completes. Most require 20% down, detailed plans, and convert to permanent mortgages after construction finishes.

These loans don't require US credit or residency. Expect 30-40% down, higher rates, and income verification from your home country.

Lock if you're closing within 45 days and comfortable with current rates. Floating risks rates rising but captures drops during volatile markets.

Traditional loans use taxable income which hurts qualification. Switch to bank statement or P&L programs that look at deposits before deductions.

Yes, with 10% down and proof you can afford both payments. Lenders require the home be 50+ miles from your primary residence.

Temporary buydowns reduce payments early on using seller or lender credits. Permanent buydowns through points save money if you keep the loan 5+ years.

Lenders count alimony and child support obligations against you. Support received counts as income after 3 months of documented payments.

Hard inquiries drop scores 2-5 points temporarily. Multiple mortgage inquiries within 45 days count as one, so shop rates aggressively upfront.

Only on refinances when you have enough equity. Purchase loans require costs paid upfront though sellers can contribute up to 3-6% depending on loan type.

Full approval with verified funds beats prequalification letters. Large down payments, short contingency periods, and lender reputation close deals.

Lenders use combined income but also count all debts. Adding someone with poor credit can hurt more than their income helps.

Divide closing costs by monthly savings. If it's under 24 months and you're staying longer, refinancing makes financial sense.

FHA and conventional allow 100% gifted funds from family. Investment properties require at least 5% from your own verified savings.

Major foundation issues, active roof leaks, missing kitchens, and failed septic systems stop loans. Most issues can be fixed with repair escrows.

You pay only interest for 5-10 years, then principal kicks in. They maximize cash flow early but require strong exit strategies when payments jump.

These are held by the lender instead of sold to Fannie/Freddie. They offer flexibility for unique properties or borrower situations conventional loans won't touch.

Yes, lenders count pensions, Social Security, 401k distributions, and annuities. Asset depletion programs work if you're not taking regular withdrawals yet.