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Poway Mortgage FAQ
Buying a home in Poway raises many questions about mortgages, qualifications, and costs. SRK Capital helps San Diego County homebuyers understand their financing options with clear, straightforward answers.
Our team specializes in helping Poway residents navigate everything from conventional loans to specialized programs for self-employed borrowers and investors. We work with buyers across all experience levels.
Below you'll find answers to the most common mortgage questions we receive from Poway homebuyers. Each response provides practical guidance to help you make informed decisions about your home financing.
Most mortgage applications take 30-45 days from submission to closing. Pre-approval can happen within 24-48 hours if you have all required documents ready.
Minimum credit scores vary by loan type. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Better scores unlock better rates.
Down payments range from 0% for VA and USDA loans to 3% for conventional and FHA loans. Jumbo loans typically require 10-20% down depending on the property price.
You'll need two years of tax returns, recent pay stubs, W-2s, bank statements, and identification. Self-employed borrowers may need additional documentation like profit and loss statements.
Yes. We offer bank statement loans, 1099 loans, and profit & loss statement loans designed specifically for self-employed borrowers. These programs use alternative income documentation.
Pre-qualification is an estimate based on information you provide. Pre-approval involves document verification and credit checks, giving you a stronger position when making offers.
Yes. FHA loans require just 3.5% down and accept lower credit scores. Community mortgages and conventional 97 programs also help first-time buyers with limited down payments.
Closing costs typically range from 2-5% of the loan amount. They include appraisal fees, title insurance, escrow fees, and lender charges. Rates vary by borrower profile and market conditions.
Fixed-rate mortgages offer payment stability over the entire loan term. ARMs start with lower rates but adjust periodically, making them better for short-term ownership or refinancing plans.
Private mortgage insurance protects lenders when you put down less than 20%. You can avoid it with 20% down, VA loans, or certain portfolio loan products.
Yes. VA loans offer 0% down, no PMI, and competitive rates for eligible veterans and active military. San Diego County has a strong military presence, making VA loans popular here.
Jumbo loans exceed conforming loan limits set by Fannie Mae and Freddie Mac. They're common in Poway for higher-priced homes and typically require larger down payments and stronger credit.
DSCR loans qualify you based on the property's rental income rather than personal income. The debt service coverage ratio compares monthly rent to the mortgage payment.
Yes. We offer foreign national loans that don't require U.S. citizenship or Social Security numbers. These programs typically need larger down payments and use alternative documentation.
Interest-only mortgages reduce initial payments by not requiring principal payments for a set period. They work well for buyers expecting income increases or short-term ownership.
Bridge loans provide short-term financing using your current home's equity to buy a new property. They help you make non-contingent offers while waiting to sell your existing home.
Discount points let you pay upfront to reduce your interest rate. Each point costs 1% of the loan amount. They make sense if you plan to keep the loan long-term.
Yes. ITIN loans allow non-citizens to qualify using an Individual Taxpayer Identification Number. These programs focus on payment history, employment stability, and down payment.
Asset depletion loans qualify you based on liquid assets like savings and investments rather than income. The lender calculates monthly income by dividing total assets by the loan term.
Lenders typically want your total monthly debts, including the new mortgage, to stay below 43-50% of gross income. The exact amount depends on the loan program and your financial profile.
A HELOC is a revolving credit line you can draw from as needed. A home equity loan provides a lump sum upfront. Both use your home's equity as collateral.
Yes. Construction loans let you finance both the purchase and renovation costs. FHA 203(k) loans are popular for buyers wanting to improve their property after purchase.
FHA loans accept lower credit scores and smaller down payments but require mortgage insurance for the loan's life. Conventional loans offer more flexibility and can drop PMI at 20% equity.
Bank statement loans use 12-24 months of business or personal bank statements to verify income instead of tax returns. This helps self-employed borrowers who write off significant business expenses.
Credit score, down payment size, loan type, loan amount, and market conditions all impact rates. Rates vary by borrower profile and market conditions. Stronger qualifications earn better pricing.
ARMs offer lower initial rates than fixed mortgages. They make sense if you plan to sell or refinance within 5-7 years or expect rates to decrease over time.
Reverse mortgages let homeowners 62+ convert home equity into cash without monthly payments. The loan is repaid when you sell, move out, or pass away.
Yes. Most loan programs accept gift funds from family members for part or all of your down payment. Proper documentation showing the gift source is required.
Portfolio ARMs are held by the lender rather than sold to Fannie Mae or Freddie Mac. They offer more flexible underwriting and may work for unique financial situations.
Hard money loans prioritize property value over borrower credit and close quickly, often in days. They carry higher rates and work best for fix-and-flip projects or time-sensitive purchases.
Your payment typically includes principal, interest, property taxes, homeowners insurance, and possibly PMI or HOA fees. This is often called PITI or PITIA.
USDA loans require properties in eligible rural areas. Poway is primarily suburban and most areas don't qualify. Check specific property addresses for eligibility.
Most lenders require 6-12 months of payment history before refinancing. Some programs allow earlier refinancing if rates drop significantly or you want to remove PMI.
Equity appreciation loans offer lower interest rates in exchange for sharing a portion of your home's future appreciation. They reduce monthly payments but limit profit at sale.
Most purchase loans require appraisals to verify property value. Some refinances and portfolio loans may waive this requirement depending on loan-to-value ratio and equity position.
We analyze your financial situation and goals to match you with the best loan program from our 25+ options. Our team guides you through the entire process from pre-approval to closing.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.