Coronado Mortgage FAQs: Expert Answers to Your Home Financing Questions

Coronado properties often exceed conforming loan limits, requiring jumbo financing. The island location, limited inventory, and proximity to military installations create unique considerations for appraisals and loan programs.

A jumbo loan exceeds conforming limits set by Fannie Mae and Freddie Mac. Many Coronado properties require jumbo financing due to higher home values, with stricter credit and reserve requirements than conventional loans.

Down payment requirements vary by loan type. Conventional loans typically require 3-20%, FHA loans 3.5%, VA loans 0% for eligible military members, and jumbo loans often 10-20% depending on the property value.

Minimum scores vary by program: FHA accepts scores as low as 580, conventional typically requires 620+, and jumbo loans usually need 700+. Higher scores secure better rates across all programs.

Yes, VA loans are excellent for eligible service members buying in Coronado. They offer 0% down, no PMI, and competitive rates. Many lenders are familiar with military buyers in this area.

The typical mortgage process takes 30-45 days from application to closing. Jumbo loans may take slightly longer due to additional documentation requirements and more thorough underwriting reviews.

Standard documents include two years of tax returns, recent pay stubs, two months of bank statements, W-2s, and identification. Self-employed borrowers need additional business documentation depending on the loan program selected.

Pre-qualification is an estimate based on self-reported information. Pre-approval involves verified documentation and underwriter review, giving you a stronger position when making offers on Coronado properties.

Fixed-rate mortgages provide payment stability over the loan term. ARMs offer lower initial rates but adjust periodically. Your choice depends on how long you plan to keep the home and risk tolerance.

Closing costs typically range from 2-5% of the loan amount. They include appraisal fees, title insurance, escrow fees, origination charges, and prepaid items like property taxes and homeowners insurance.

Yes, but the condo complex must be FHA-approved. Many Coronado condos meet requirements, but some do not. Your lender can verify specific property eligibility before you make an offer.

PMI protects lenders when you put down less than 20% on conventional loans. It adds to your monthly payment until you reach 20% equity. VA and USDA loans don't require PMI.

Lenders calculate DTI by dividing monthly debt payments by gross income. Most programs prefer DTI below 43-50%. Higher ratios may require compensating factors like larger down payments or cash reserves.

DSCR loans qualify investors based on rental income rather than personal income. They're ideal for buying Coronado investment properties, especially for self-employed borrowers or those with multiple rental properties.

Yes, bank statement loans use 12-24 months of business deposits to qualify instead of tax returns. This benefits self-employed buyers whose tax deductions reduce reported income significantly.

Interest-only mortgages allow you to pay only interest for a set period, typically 5-10 years. This lowers initial payments but doesn't build equity during the interest-only phase.

Bridge loans provide short-term financing using equity from your current home to buy a new Coronado property before selling. They help buyers compete in competitive markets without sale contingencies.

Conventional loans offer flexibility, lower costs with 20% down, and no upfront funding fees. They work well for buyers with strong credit and stable income purchasing properties within conforming limits.

FHA loans benefit buyers with lower credit scores or smaller down payments. They require just 3.5% down and accept scores as low as 580, though they include mortgage insurance premiums.

1099 loans typically require two years of 1099 forms and personal tax returns. Some programs use bank statements or CPA-prepared profit and loss statements for qualification instead.

Yes, foreign national loans help non-citizens purchase US property. These programs don't require US credit history or Social Security numbers but typically need larger down payments.

Asset depletion loans qualify borrowers based on liquid assets rather than employment income. Lenders divide assets by loan term to calculate qualifying income, ideal for retirees with substantial savings.

Jumbo loans typically require 6-12 months of reserves covering principal, interest, taxes, and insurance. Conventional loans may need 2-6 months. Reserves strengthen your application and improve approval odds.

A rate lock guarantees your interest rate for a specific period, usually 30-60 days. Lock when rates are favorable and you're confident closing within the lock period.

Most homeowners can deduct mortgage interest on loans up to $750,000 for married couples filing jointly. Consult a tax professional about your specific situation and state tax implications.

Discount points are prepaid interest that lower your rate. Each point costs 1% of the loan amount. They make sense if you plan to keep the loan long enough to recoup the upfront cost.

Lenders order appraisals to confirm property value. Appraisers examine the home, compare recent sales, and provide a detailed report. Limited inventory can sometimes create appraisal challenges in exclusive markets.

If appraisal is below purchase price, you can negotiate with the seller, increase your down payment to cover the gap, or cancel if you have an appraisal contingency.

Yes, though it may limit options. FHA accepts borrowers with limited credit if they have alternative payment histories. Building credit before applying typically secures better rates and programs.

Title insurance protects against ownership disputes and hidden liens. Lenders require it to protect their interest. Owner's title insurance, though optional, protects your ownership rights long-term.

Many Coronado properties have HOA fees. Lenders include these in your DTI calculation. High fees can reduce the loan amount you qualify for, so factor them into your budget early.

Yes, refinancing lets you adjust your rate, term, or access equity. Consider refinancing when rates drop significantly, your credit improves, or you want to eliminate PMI or change loan types.

Portfolio ARMs are held by the lender rather than sold to investors. They offer flexible underwriting for borrowers who don't fit standard guidelines, with rates adjusting based on market indexes.