Lathrop Mortgage FAQs: Your Questions Answered by San Joaquin County Brokers

FHA loans allow 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though higher scores get better rates.

FHA requires 3.5% down, conventional allows 3%, and VA/USDA offer zero down. Investment properties need 15-25% depending on the loan type.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers need additional business documentation or can use bank statement loans.

Most purchase loans close in 21-30 days. Refinances often finish faster, while complex income situations may add a week.

Yes, especially for Bay Area commuters who can't afford Tracy or Manteca pricing. FHA and conventional low-down-payment loans work well here.

FHA allows lower credit scores but requires mortgage insurance for the loan's life. Conventional drops PMI at 20% equity and offers better rates for strong credit.

Yes, conventional investor loans allow 20% down for single-family rentals. DSCR loans work if rental income covers the mortgage without using your W-2.

Expect 2-5% of the purchase price for lender fees, title, escrow, and prepaid items. Seller concessions can cover some of these costs.

You'll pay PMI on conventional loans under 20% down and MIP on all FHA loans. VA loans have a funding fee but no ongoing insurance.

Absolutely. Bank statement loans use 12-24 months of deposits instead of tax returns, which helps self-employed borrowers show higher income.

DSCR loans qualify based on rental income, not your personal income. Investors with multiple properties use these to avoid income limits.

Get pre-approved. It requires document verification and shows sellers you're serious, which matters in competitive Lathrop markets.

Not really. Rates depend on your credit score, loan type, and down payment, but you can buy points to lower them.

ARMs offer lower initial rates than fixed loans, saving money if you plan to sell or refinance within 5-7 years. They work well for Lathrop buyers planning short-term ownership.

Yes, if you occupy one unit. VA loans allow up to four units with zero down when you live there.

Jumbo loans exceed conforming limits, currently $806,500 in San Joaquin County. They require stronger credit and higher down payments than conventional loans.

Bridge loans let you buy before selling your current home. They carry higher rates but solve timing problems for move-up buyers.

Yes. ITIN loans work for non-citizen buyers, though they require larger down payments and slightly higher rates.

Asset depletion loans use investment accounts as income, dividing balances by 360 months. Retirees and asset-heavy buyers with low W-2 income benefit most.

Investment properties usually require 6 months of reserves. Primary homes may not need reserves unless you're buying a multi-unit or high-priced property.

You'll pay significantly less interest and build equity faster. Monthly payments run higher, but rates are typically 0.5% lower than 30-year loans.

Not on purchases. You can roll costs into refinances if you have enough equity, but purchase loans require cash or seller concessions.

Interest rate is what you pay on the loan balance. APR includes fees and closing costs, giving a fuller picture of loan expense.

If you're keeping the loan over five years, points usually pay off. Shorter timelines favor taking the higher rate with no points.

You pay only interest for 5-10 years, then principal and interest after. Investors and high-income buyers use these for lower initial payments.

Possibly. One or two lates over 24 months won't disqualify you from FHA or portfolio loans, though rates may increase.

Portfolio ARMs come from specific lenders with flexible underwriting. They work for borrowers with strong assets but non-traditional income.

California offers down payment assistance programs through CalHFA. Community mortgage programs may also provide flexible terms for qualifying buyers.

Yes. FHA 203k and conventional renovation loans let you finance both purchase and repairs, though they require contractor bids upfront.

DTI compares monthly debt payments to gross income. Most loans cap DTI at 43-50%, though some portfolio products allow higher ratios.

PMI runs 0.3-1.5% of the loan amount annually depending on credit and down payment. FHA MIP costs 0.85% per year for most loans.

Yes, once you reach 20% equity through payments or appreciation. You'll need an appraisal to confirm the current value.

You can renegotiate price, bring extra cash to close, or cancel if you have an appraisal contingency. Low appraisals kill about 10% of deals.

Lock when you're in contract with a closing date. Locks typically last 30-45 days, and extending them costs money if your deal delays.

Staying in the same field helps. Gaps in employment or career switches require explanation letters and may delay approval until you're settled.

Pre-approval verifies income and credit upfront. Clear-to-close means underwriting approved everything and you're ready to sign final documents.

Compare APR, not just rate. Check lender fees, required reserves, and prepayment penalties to find the true cost.

Yes. Lenders count 0.5-1% of the balance as monthly payment, or use your actual IBR payment if it shows on your credit report.

These loans serve non-US citizens without US credit. Expect 30-40% down and higher rates, but they allow property ownership without residency.

Probably. If you're keeping the home over two years, a 0.5% drop usually covers closing costs and saves money long-term.