Solana Beach Mortgage Questions Answered by Local Brokers

Most conventional loans require 620 minimum, but jumbo lenders prefer 700+ for the best rates. Investment properties typically need 680 or higher.

Conventional loans start at 3% down on primary residences. Jumbo loans in this price range typically require 20% down, though we have programs that go lower.

Rates vary by borrower profile and market conditions. Jumbo rates often run 0.25-0.50% higher than conforming loans but fluctuate daily across our lender network.

FHA loans work here but hit lending limits around $1.15 million. Most Solana Beach properties exceed that threshold and require conventional or jumbo financing.

San Diego County's 2024 conforming limit is $1,149,825 for single-family homes. Anything above that requires jumbo loan programs with different qualification standards.

Standard purchases close in 30 days with all documents ready. Complex income situations or multiple properties can add 10-15 days to underwriting timelines.

Yes, we close self-employed loans constantly in Solana Beach. Bank statement loans, P&L loans, and 1099 programs all work when tax returns don't show enough income.

Bring two years of tax returns, two months of bank statements, recent pay stubs, and your driver's license. Self-employed borrowers need business bank statements instead of W-2s.

Get pre-approved with full document review before making offers. Pre-qualification means nothing in this competitive market where sellers expect serious buyers with lender backing.

FHA allows 3.5% down with 580 credit but charges mortgage insurance for life. Conventional loans drop PMI at 80% loan-to-value and offer higher limits.

Most single-family homes here exceed conforming limits and require jumbo financing. Condos under $1.15 million can still use conventional programs with better rates.

Expect 2-3% of purchase price in closing costs. On a $2 million home, that's $40,000-$60,000 including lender fees, title, escrow, and prepaid property taxes.

Not on purchase loans. You can ask the seller to cover costs through seller credits, which we negotiate during the offer process.

Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. Drop it once you reach 20% equity through payments or appreciation.

Lenders cap total debt at 43-50% of gross income. A $2 million purchase with 20% down needs roughly $400,000 annual income to qualify comfortably.

Yes, we offer DSCR loans that qualify based on rental income, not your personal tax returns. Expect 20-25% down and rates 0.5-1% higher than primary residence loans.

Debt Service Coverage Ratio loans qualify you on the property's rental income instead of W-2s or tax returns. Real estate investors use these to avoid personal income documentation.

Yes, bank statement loans use 12-24 months of deposits to calculate income. Self-employed borrowers who write off significant expenses qualify this way with competitive rates.

Absolutely. We have foreign national programs that don't require U.S. credit history or Social Security numbers, just passport, visa, and larger down payments around 30-40%.

ARMs offer lower initial rates fixed for 5, 7, or 10 years before adjusting. They work well if you plan to sell or refinance before the adjustment period.

Each point costs 1% of the loan amount and drops your rate about 0.25%. It makes sense if you keep the loan past the break-even period, usually 4-6 years.

Yes, VA loans work up to $1,149,825 with zero down for eligible veterans. Above that limit requires a down payment on the excess amount.

Jumbo loans exceed conforming limits and finance most Solana Beach properties. Qualification requires 700+ credit, 20% down, six months reserves, and strong income documentation.

Lenders allow housing costs up to 28% of gross income and total debt up to 43-50%. We calculate your exact buying power after reviewing your full financial picture.

Pre-approval means initial document review with conditional approval. Clear to close means underwriting verified everything and you're approved to sign final loan documents.

Yes, immediate family can gift any amount for down payment on primary residences. Lenders require a gift letter stating the funds don't need repayment.

One late payment after 30 days drops your credit score 50-100 points and shows on your report for seven years. Multiple missed payments trigger foreclosure proceedings.

15-year loans save massive interest but double your monthly payment. Most Solana Beach buyers choose 30-year terms for payment flexibility and invest the difference elsewhere.

Yes, refinancing makes sense when rates drop 0.5-1% or you need to pull equity. Closing costs run 2-3% of the loan amount, so calculate your break-even timeline.

Bridge loans let you buy before selling your current home. They work for non-contingent offers in competitive markets but cost more with rates 2-3% above standard mortgages.

We shop your scenario across 200+ wholesale lenders to find the lowest rate and best program fit. Direct lenders show you one option; we compare dozens simultaneously.

Higher property values mean most buyers need jumbo loans or creative financing. The self-employed buyer concentration also drives demand for bank statement and asset-based loan programs.