National City Mortgage FAQs: Your Local Homebuying Questions Answered

FHA loans allow credit scores as low as 580 with 3.5% down, while conventional loans typically require 620 or higher. Some specialized programs accept lower scores depending on compensating factors.

Down payment requirements vary by loan type. FHA loans require 3.5%, conventional loans can be as low as 3%, and VA loans offer 0% down for eligible veterans and service members.

You'll need recent pay stubs, W-2s, bank statements, tax returns, and identification. Self-employed borrowers may need additional documentation depending on the loan program selected.

Most mortgage closings take 30-45 days from application to funding. Timeline varies based on loan type, documentation completeness, and property appraisal scheduling.

FHA loans require lower down payments and credit scores but include mortgage insurance for the loan's life. Conventional loans offer more flexibility and can eliminate PMI at 20% equity.

Yes, ITIN loans allow qualified borrowers without Social Security numbers to purchase homes. These programs evaluate income, assets, and creditworthiness through alternative documentation methods.

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

California offers down payment assistance programs and tax credits for first-time buyers. These can be combined with FHA, conventional, or VA loans to reduce upfront costs.

Private Mortgage Insurance protects lenders when down payments are below 20%. You can avoid it with 20% down, VA loans, or certain conventional programs with higher rates.

Most lenders prefer DTI ratios below 43%, though some programs allow up to 50%. This ratio compares your monthly debt payments to gross monthly income.

Bank statement loans, 1099 loans, and profit-and-loss statement programs accommodate self-employed income. These alternatives use business deposits or financial statements instead of traditional tax returns.

Pre-approval gives you a clear budget and strengthens offers in competitive situations. The process involves credit checks, income verification, and preliminary underwriting review.

DSCR loans qualify investment properties based on rental income rather than personal income. These work well for investors with multiple properties or non-traditional income sources.

ARMs offer lower initial rates that adjust after a fixed period based on market indexes. They benefit buyers planning shorter ownership periods or expecting income increases.

Jumbo loans exceed conforming loan limits set by federal agencies. In San Diego County, these typically apply to purchase prices above standard conventional loan maximums.

VA loans offer 0% down, no PMI, and competitive rates for eligible veterans and service members. These programs also feature flexible credit requirements and limited closing costs.

Rate locks protect your interest rate for a specified period, typically 30-60 days. Lock when rates are favorable and you're ready to close within the lock period.

Bridge loans provide short-term financing to purchase a new home before selling your current property. These work well in situations requiring quick closings or contingency-free offers.

Points are upfront fees that reduce your interest rate—each point costs 1% of the loan amount. They make sense if you plan to keep the loan long enough to recoup costs.

Adding a co-borrower combines incomes and can increase buying power. Both parties share responsibility for the loan and ownership of the property.

Appraisals determine a property's market value to ensure the loan amount doesn't exceed its worth. Licensed appraisers examine comparable sales, condition, and location factors.

San Diego County's strong economy and housing demand create competitive lending options. Buyers benefit from diverse loan programs and experienced local mortgage professionals.

Asset depletion loans qualify borrowers based on liquid assets rather than employment income. Lenders divide total assets by the loan term to calculate qualifying income.

Refinancing can lower your rate, change loan terms, or access equity. Most lenders recommend waiting at least six months after purchase before refinancing.

Home Equity Lines of Credit let you borrow against your home's equity as needed. They function like credit cards with variable rates and draw periods followed by repayment.

Yes, lenders require homeowners insurance to protect their investment. Coverage must begin at closing and remain active throughout the loan term.

Foreign national loans help non-U.S. citizens purchase American real estate. These programs accommodate international buyers with alternative documentation and larger down payments.

Interest-only loans let you pay just interest for an initial period, reducing monthly payments. Principal payments begin after the interest-only period ends, increasing payment amounts.

Recent bankruptcies, foreclosures, short sales, and high debt ratios can affect approval. Waiting periods vary by loan type—some programs accept applicants sooner than others.

FHA 203(k) and conventional renovation loans fund both purchase and repairs in one loan. These programs require contractors, detailed budgets, and inspections throughout the renovation process.

Low appraisals require renegotiating price, increasing down payment, or appealing with additional comparable sales. Some buyers walk away if contract contingencies allow.

Fixed rates provide payment stability for the entire loan term. Adjustable rates offer lower initial payments but carry risk of future increases—best for shorter ownership plans.

SRK Capital guides National City buyers through loan selection, application, documentation, and closing. We compare multiple loan options to find the best fit for your situation.

Investment property loans include DSCR, conventional investor, portfolio, and hard money options. Requirements vary by property type, rental income, and your investment experience.

LTV compares your loan amount to the property's value—80% LTV means a 20% down payment. Lower LTVs typically result in better rates and eliminate mortgage insurance requirements.