Santee Mortgage FAQs: Your Complete Guide to Home Financing in San Diego County

Minimum credit scores vary by loan type. FHA loans accept scores as low as 580 with 3.5% down, while conventional loans typically require 620 or higher. Better credit scores unlock lower rates and more options.

Down payment requirements range from 0% for VA and USDA loans to 3% for conventional and FHA loans. Investment properties typically require 15-25% down depending on the loan program.

Santee buyers can access conventional, FHA, VA, USDA, jumbo, and specialized loans including bank statement and DSCR programs. Your employment type and property use determine the best fit.

Pre-approval typically takes 1-3 business days. Full loan approval to closing averages 30-45 days depending on loan type, property appraisal, and documentation completeness.

Yes. Self-employed buyers can use bank statement loans, 1099 loans, or profit and loss statement programs. These alternatives review deposits instead of tax returns for income verification.

Standard documents include pay stubs, W-2s, tax returns, bank statements, ID, and employment verification. Self-employed applicants may need additional business documentation depending on loan type.

Yes. California offers down payment assistance programs, and FHA loans provide low down payment options. First-time buyers may also qualify for certain property tax exemptions in San Diego County.

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

Interest rates are determined by national markets, not location. Your rate depends on credit score, down payment, loan type, and current market conditions. Rates vary by borrower profile and market conditions.

Closing costs typically range from 2-5% of the purchase price. This includes lender fees, title insurance, escrow fees, appraisal, and recording fees specific to San Diego County transactions.

Yes. Investment property loans include conventional, DSCR, and portfolio options. These loans typically require higher down payments and interest rates than primary residence financing.

DSCR loans qualify borrowers based on rental income rather than personal income. Real estate investors purchasing income-generating properties in Santee benefit from this no-income-verification approach.

Mortgage insurance is required for conventional loans with less than 20% down and all FHA loans. VA loans require a funding fee instead. PMI protects the lender if you default.

Pre-qualification is an estimate based on self-reported information. Pre-approval involves document verification and credit checks, providing a conditional commitment that strengthens your offer.

Yes. Foreign national loans and ITIN loans serve non-citizens. These programs have specific requirements including larger down payments and may use international credit history.

Points are prepaid interest that lower your rate. One point equals 1% of the loan amount. Paying points makes sense if you plan to keep the loan long enough to recoup the upfront cost.

VA loans offer 0% down payment and no PMI for eligible veterans and service members. They feature competitive rates and flexible credit requirements but require a VA funding fee.

Jumbo loans exceed conforming loan limits, currently $806,500 in San Diego County for 2024. These loans require higher credit scores, larger down payments, and more documentation than conventional loans.

Yes. Bank statement loans use 12-24 months of bank deposits to verify income instead of tax returns. Self-employed borrowers and business owners commonly use this program.

ARMs offer lower initial rates that adjust after a fixed period. Common options include 5/1, 7/1, and 10/1 ARMs. They suit buyers planning to sell or refinance before adjustment.

Lenders typically approve loans where monthly payments don't exceed 43-50% of gross income. Your specific amount depends on income, debts, credit score, and down payment size.

PMI protects lenders when conventional loan down payments are below 20%. It typically costs 0.3-1.5% of the loan amount annually and can be canceled once you reach 20% equity.

Yes. Refinancing can lower your rate, change loan terms, or access home equity. Rate-and-term refinances typically require 20% equity, while cash-out refinances may need 25-30%.

Bridge loans provide short-term financing between buying a new home and selling your current one. They work well when you need funds for a down payment before your Santee home sells.

Construction loans fund building projects in phases as work progresses. They typically convert to permanent mortgages after completion. These loans require detailed plans, budgets, and contractor information.

Asset depletion loans qualify borrowers using investment accounts, retirement funds, or other assets instead of employment income. Lenders calculate monthly income by dividing assets by the loan term.

Yes. ITIN loans serve taxpayers without Social Security numbers. These mortgages require valid ITINs, proof of income, and typically larger down payments than conventional loans.

A HELOC is a revolving credit line secured by your home equity. You draw funds as needed during a set period, paying interest only on amounts used. Minimum equity requirements apply.

15-year mortgages have higher payments but lower rates and less total interest. 30-year loans offer lower payments and more flexibility. Your choice depends on budget and financial goals.

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

Yes. Investor loans include DSCR, portfolio, and interest-only options. These programs focus on property cash flow rather than personal income, making qualification easier for multiple properties.

If the appraisal is below the purchase price, you can negotiate with the seller, increase your down payment, or cancel the contract. Low appraisals affect loan amounts since lenders use the lower value.

Yes. Rate locks guarantee your rate for 30-60 days during loan processing. This protects you from rate increases but may involve fees for extended lock periods. Rates vary by borrower profile and market conditions.

Hard money loans are short-term, asset-based financing used for fix-and-flip projects or time-sensitive purchases. They feature fast approval but higher rates and fees than conventional mortgages.

Condo financing requires lender approval of the HOA and complex. Projects must meet warrantability requirements including reserve funds and owner-occupancy ratios. FHA and VA have specific condo certification requirements.

Recent bankruptcies, foreclosures, late payments, and high debt levels can impact approval. Most loans require waiting periods after major credit events. Work with a lender to address issues before applying.

Yes. FHA and conventional loans allow 2-4 unit properties if you occupy one unit. These loans require higher down payments than single-family homes but offer investment potential with owner occupancy.

Budget for property taxes, homeowners insurance, HOA fees if applicable, maintenance, and utilities. San Diego County property taxes are around 1.1% of assessed value annually plus any special assessments.

Compare rates, fees, loan options, and customer service. Local mortgage brokers offer multiple lender options and personalized guidance. Read reviews and ask about experience with your specific loan type.

Interest-only loans allow you to pay just interest for a set period, typically 5-10 years. This reduces initial payments but builds no equity. They suit buyers expecting income increases or property appreciation.