San Juan Bautista Mortgage FAQs: Your Local Lending Questions Answered

FHA loans accept 580 scores with 3.5% down. Conventional loans typically need 620 minimum, though some lenders go lower with compensating factors.

FHA requires 3.5% down, conventional loans start at 3%. Investment properties need 15-25% depending on the loan program.

Absolutely. Bank statement loans use 12-24 months of deposits instead of tax returns. 1099 loans and P&L programs work for many self-employed borrowers.

Yes. We have lenders who finance rural properties and land in San Benito County. USDA loans work for eligible rural areas with zero down.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional loans drop PMI at 80% LTV and offer better rates with strong credit.

Standard purchases close in 21-30 days. Complex income documentation or property issues can add 1-2 weeks.

W-2 borrowers need paystubs, tax returns, and bank statements. Self-employed borrowers provide business bank statements or P&L documents depending on the program.

Yes. These loans work well for self-employed buyers who write off business expenses. Lenders use 12-24 months of bank deposits to calculate income.

Expect 2-5% of the purchase price. This includes lender fees, title insurance, escrow, and prepaid items like property taxes and insurance.

PMI applies when you put down less than 20%. You can remove it once you reach 20% equity through payments or appreciation.

Yes, but appraisals take longer and some lenders have stricter requirements. We know which lenders handle historic homes smoothly.

DSCR loans qualify you based on rental income, not personal income. These work for investment properties when the rent covers the mortgage payment.

Some programs allow 15% down for single-unit rentals. Multi-unit properties typically need 20-25% depending on your experience.

ITIN loans let borrowers without Social Security numbers qualify using their Tax ID. Credit history and income still matter, but citizenship isn't required.

Fixed rates lock in your payment for 30 years. ARMs start lower but adjust after 5-10 years, making them better if you'll sell or refinance soon.

Bridge loans let you buy before selling your current home. These are short-term loans with higher rates, typically 6-12 months.

Yes. Land loans typically need 20-50% down and have higher rates than home loans. Hard money or portfolio lenders handle most land deals.

Jumbo loans finance properties above $806,500 in most California counties. Rates are competitive if you have strong credit and 20%+ down.

Yes. VA loans offer zero down for eligible veterans with no PMI. These are excellent options if you qualify through military service.

Paying points means prepaying interest to lower your rate. This makes sense if you'll keep the loan 5+ years and can afford upfront costs.

Rate locks happen after you're under contract. Before that, we monitor rates and help you time your lock for the best advantage.

Asset depletion loans qualify you based on savings and investments, not income. Lenders divide your assets by 360 months to calculate monthly income.

Reserves are months of mortgage payments in savings. Conventional loans need 2-6 months depending on down payment. Investment properties need 6-12 months.

You can't roll costs into a purchase loan. You can ask the seller to pay costs or choose a higher rate to get lender credits.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we verified your income, assets, and credit with documentation.

Yes. Construction-to-permanent loans fund the build and convert to a mortgage after completion. These need detailed plans and contractor agreements.

You can negotiate with the seller, bring more cash, or walk away if you have an appraisal contingency. Sometimes we challenge appraisals with comparable sales.

Yes. Most programs allow gifted down payments from family members. You'll need a gift letter stating the money doesn't require repayment.

HELOCs let you borrow against home equity as needed. These work well for renovations or ongoing expenses since you only pay interest on what you use.

DTI compares monthly debt payments to gross income. Most loans need DTI below 50%, though some programs allow higher with strong credit.

We shop 200+ lenders to find your best rate and program. Direct lenders only offer their own products, which limits your options.

Yes. Second homes allow 10% down on conventional loans if you'll use it occasionally. Investment properties have different rules and down payment requirements.