Del Mar Mortgage FAQs: Your Questions Answered by Local Experts

Del Mar buyers can access conventional loans, FHA loans, VA loans, jumbo loans, and specialized programs like bank statement loans and DSCR loans for investors. We offer over 25 loan programs to match different buyer profiles and property types.

Many Del Mar properties exceed conforming loan limits and require jumbo financing. For 2024, loans above $766,550 are considered jumbo in San Diego County. We can help you determine which loan type fits your purchase price.

Minimum credit scores vary by loan type. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Jumbo loans often need scores of 680-700 or better depending on the lender.

Down payment requirements range from 0% for VA loans to 3% for certain conventional loans and 3.5% for FHA loans. Jumbo loans typically require 10-20% down, though rates vary by borrower profile and market conditions.

Yes, we offer bank statement loans, 1099 loans, and profit & loss statement loans designed specifically for self-employed borrowers. These programs use bank deposits or business income instead of traditional tax returns.

Most borrowers need pay stubs, W-2s, tax returns, bank statements, and ID. Self-employed buyers may provide business documentation. Required documents vary by loan program, and we'll provide a complete checklist.

Pre-approval typically takes 1-3 days. Full loan approval and closing usually take 21-45 days depending on loan complexity and appraisal turnaround. Working with a local broker can help expedite the process.

Closing costs typically range from 2-5% of the purchase price. This includes lender fees, title insurance, escrow fees, and prepaid items. We provide detailed estimates upfront so there are no surprises.

Pre-approval is essential in Del Mar's competitive market. It shows sellers you're a serious buyer with verified financing. Pre-approval also helps you understand your budget and strengthens your offer.

PMI (Private Mortgage Insurance) protects lenders when down payments are below 20% on conventional loans. Costs typically range from 0.3-1.5% of the loan amount annually and can be removed once you reach 20% equity.

DSCR loans qualify investors based on rental income rather than personal income. The property's rent must cover the mortgage payment. These are popular for Del Mar investment properties and vacation rentals.

Yes, eligible veterans and service members can use VA loans for Del Mar properties. VA loans offer 0% down payment, no PMI, and competitive rates. Property must meet VA appraisal standards.

FHA loans allow lower credit scores and smaller down payments (3.5%) but require mortgage insurance for the loan life. Conventional loans need higher scores but offer more flexibility and can eliminate PMI at 20% equity.

First-time buyers may access conventional loans with 3% down, FHA loans with 3.5% down, and various assistance programs. We help identify programs you qualify for based on income and property location.

ARMs offer lower initial rates that adjust after a fixed period. Common options include 5/1, 7/1, and 10/1 ARMs. These work well for buyers planning shorter ownership periods or expecting income growth.

Yes, we offer foreign national loans for international buyers. These programs typically require larger down payments (30-40%) and use international credit and income documentation. Property serves as primary collateral.

Bank statement loans use 12-24 months of bank deposits to verify income instead of tax returns. They're ideal for self-employed borrowers, business owners, and 1099 contractors with complex tax write-offs.

Jumbo loans typically require credit scores of 680+, debt-to-income ratios below 43%, and down payments of 10-20%. Lenders review cash reserves, income stability, and overall financial strength more closely than conforming loans.

Bridge loans provide short-term financing to buy a new home before selling your current one. They're useful in Del Mar's fast-paced market when timing between purchase and sale doesn't align perfectly.

Yes, ITIN loans allow borrowers without Social Security numbers to qualify for mortgages. These programs require employment verification, bank statements, and often larger down payments than traditional loans.

Local brokers understand Del Mar's unique market, have relationships with appraisers and title companies, and can navigate coastal property requirements. We offer multiple lender options and personalized service.

Single-family homes have the most financing options. Condos require lender approval of the HOA. Investment properties need larger down payments. Luxury properties over loan limits require jumbo financing with stricter requirements.

Interest-only loans let you pay only interest for an initial period, reducing monthly payments. After the interest-only period, payments increase to cover principal. These suit buyers expecting income growth or property appreciation.

Yes, second home loans are available with down payments typically starting at 10%. The property must be for personal use (not rented long-term). Rates and terms differ from primary residence financing.

Asset depletion loans calculate qualifying income by dividing your liquid assets by the loan term. This helps retirees or high-net-worth individuals with significant assets but limited traditional income qualify for financing.

Construction loans provide funds in stages as building progresses. They typically require 20-25% down and convert to permanent financing once construction completes. We coordinate with builders throughout the process.

Portfolio ARMs are held by lenders rather than sold to investors, offering more flexibility in underwriting. They work well for unique properties or borrowers who don't fit traditional lending guidelines.

Yes, HELOCs provide revolving credit lines while home equity loans offer lump sums. Both use your home equity as collateral. They're useful for renovations, debt consolidation, or investment opportunities.

Investment properties require larger down payments (15-25%) and have slightly higher rates. We offer DSCR loans, portfolio loans, and conventional investor financing. Rental income can help you qualify.

Yes, homeowners 62+ with significant equity can access reverse mortgages to convert home equity into cash. No monthly payments are required while living in the home. Loan is repaid when you move or sell.

30-year mortgages have lower monthly payments but higher total interest. 15-year loans build equity faster with lower rates but require higher payments. Your choice depends on budget, goals, and financial situation.

DTI compares your monthly debt payments to gross monthly income. Most lenders prefer DTI below 43-50%. Lower ratios improve approval odds and may qualify you for better rates and terms.

Yes, we work with recently divorced borrowers. We'll need your divorce decree, settlement agreement, and documentation of any alimony or child support. Credit and income requirements still apply.

Low appraisals can affect financing since lenders base loans on the lower of purchase price or appraised value. Options include renegotiating price, increasing down payment, or challenging the appraisal with additional data.

Rate locks guarantee your interest rate for a specified period, usually 30-60 days. Lock when rates are favorable and you're confident about closing timing. Extensions may be available for a fee if needed.

Pre-qualification is an estimate based on self-reported information. Pre-approval involves credit checks and document verification, providing a conditional commitment from a lender. Pre-approval carries more weight with sellers.