Lodi Mortgage FAQs: Your Complete Guide to Home Financing in San Joaquin County

FHA loans start at 580 for 3.5% down, but you'll get better rates at 620+. Conventional loans require 620 minimum, though 680+ unlocks significantly lower pricing.

FHA requires 3.5% down, conventional allows 3% for first-timers. You'll also need 2-3% for closing costs unless you negotiate seller credits.

Standard purchases close in 30 days with clean documentation. Self-employed or complex income files can take 45 days if underwriters request additional statements.

Yes. Bank statement loans work well for wine industry workers and business owners who write off significant expenses. We use 12-24 months of deposits instead of tax returns.

W-2 buyers need two years of tax returns, recent pay stubs, and two months of bank statements. Self-employed borrowers need business bank statements or P&L documentation depending on program.

FHA works better below 680 credit or with minimal down payment. Conventional costs less monthly if you have 700+ credit and 5% down.

Conventional PMI drops off at 78% loan-to-value. FHA mortgage insurance stays for the loan life unless you put 10%+ down, then it drops after 11 years.

Expect 2-3% of purchase price for fees, title, escrow, and prepaid items. On a $450,000 home, that's $9,000-$13,500 out of pocket at closing.

Yes, conventional investor loans allow 15% down on single-family rentals. DSCR loans work if the rental income covers the mortgage payment by 1.0x or higher.

DSCR loans qualify you based on rental income, not personal income. They're perfect for Lodi investors who own multiple properties or have complex tax returns.

Yes, ITIN loans work for buyers with Individual Taxpayer ID numbers. Terms mirror conventional loans but require larger down payments, typically 15-20%.

Rates don't vary by city. Your rate depends on credit score, loan type, down payment, and current market conditions across all 200+ lenders we access.

We shop your scenario across 200+ wholesale lenders instead of offering one bank's programs. That competition typically saves you 0.25-0.5% on rate or finds better loan structures.

Yes, on primary residences. The donor writes a gift letter stating the funds don't require repayment. We'll need documentation showing the transfer between accounts.

Pre-qualification is an estimate based on your stated information. Pre-approval means we've verified income, assets, and credit through documentation and underwriting review.

Only if you're keeping the loan 5+ years. Each point costs 1% of loan amount and typically reduces rate by 0.25%. Do the math on breakeven before deciding.

Yes, FHA 203k and conventional renovation loans let you finance purchase price plus repair costs in one mortgage. You'll need detailed contractor bids before closing.

Recent bankruptcy, foreclosure, or unpaid collections will block approval. Most lenders want 2-4 years distance from major credit events depending on loan type.

Most programs cap total debt payments at 43-50% of gross monthly income. That includes your new mortgage, car loans, credit cards, and student loans.

Yes, if you're a qualified veteran. VA loans require no down payment and no monthly mortgage insurance, making them the strongest program for eligible buyers.

Jumbo loans exceed conforming limits, currently $806,500 in San Joaquin County. They require stronger credit (700+) and larger down payments than conventional loans.

California offers CalHFA programs with down payment help for first-time buyers. Terms vary by income and home price, and they pair with FHA or conventional loans.

We average 12-24 months of business or personal bank deposits to calculate income. This works when tax returns show low income due to business write-offs.

Conventional second home loans require 10% down minimum. You'll need to prove the property is for personal use, not rental income.

Not on purchases. You can ask sellers to pay up to 3-6% in credits depending on loan type. Refinances allow costs to be added to loan amount.

You can renegotiate price, bring extra cash to cover the gap, or cancel the deal. Most contracts include appraisal contingencies protecting buyers in this situation.

Initial underwriting decision comes within 3-5 business days after submitting complete documentation. Final clear-to-close typically arrives 5-7 days before closing date.

Lock when you're comfortable with the rate. Most locks run 30-45 days. Rates vary by market conditions daily and could move either direction.

ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years. They make sense if you're selling or refinancing before the adjustment period hits.

Yes, you can use FHA or conventional financing on 2-4 unit properties with as little as 3.5% down. You must live in one unit for at least a year.

Interest rate is your actual monthly cost. APR includes rate plus fees spread over the loan term, giving you total borrowing cost for comparison shopping.

Lenders don't require inspections, but you should get one anyway. Inspections protect you from buying properties with major defects that could affect value or safety.

Expect roughly 1.1-1.3% of purchase price annually. Lenders collect monthly tax payments in escrow and pay the county directly on your behalf twice yearly.

Yes, if you stayed in the same industry or increased income. Career changes to unrelated fields usually require 2 years of history in the new role.

Bridge loans let you buy before selling your current home. They're short-term, higher-rate financing that gets paid off when your existing property closes.

Lenders require insurance and collect it monthly in escrow. Annual premiums in Lodi typically run $800-$1,500 depending on coverage, home value, and deductible chosen.

Yes, we offer foreign national loans for non-U.S. citizens. These require larger down payments (30%+) and have different documentation requirements than standard programs.

You'll pay significantly less interest over the loan life and build equity faster. Monthly payments run about 40% higher than comparable 30-year terms.

Yes, for qualified borrowers with strong credit and income documentation. The initial interest-only period typically lasts 10 years before switching to principal and interest payments.

Conventional and FHA refinances require 6-12 months of payment history. Cash-out refinances need longer waiting periods, typically 12 months minimum from purchase.