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Stockton Mortgage FAQ
Stockton homebuyers work with us because we answer the questions other brokers dodge. We have access to 200+ wholesale lenders across every loan type.
The Central Valley housing market moves differently than coastal California. We know which programs fit Stockton price points and borrower profiles.
Whether you're a first-timer in Weston Ranch or an investor eyeing Lincoln Village, these FAQs cover what actually matters for approval.
FHA loans allow 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though some portfolio lenders go lower for strong compensating factors.
FHA requires 3.5%, conventional allows 3%, and VA or USDA loans require zero down for qualified buyers. Your loan type determines the minimum, not the city.
Most conventional and FHA loans close in 21-30 days. Bank statement and asset depletion loans add 5-10 days for additional underwriting review.
No. We place loans for foreign nationals, ITIN borrowers, and visa holders regularly in Stockton.
Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. 1099 and P&L loans work for contractors and business owners.
W-2 earners need pay stubs, W-2s, and bank statements. Self-employed borrowers need business bank statements or 1099s depending on the loan program.
Market conditions change monthly. We recommend contacting us directly for current San Joaquin County pricing trends and inventory levels.
Spanos Park and Brookside offer solid entry points. Avoid areas with high investor activity if you're competing with cash offers.
Get pre-approved. Pre-qualification is a guess based on what you tell a lender. Pre-approval means underwriting reviewed your actual documents.
FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life on 3.5% down loans. Conventional drops PMI at 20% equity.
If you're active military, veteran, or eligible spouse, yes. VA loans require zero down and have no monthly mortgage insurance.
USDA loans require zero down for rural areas. Parts of San Joaquin County qualify, but most of Stockton city limits do not.
Yes. Bank statement loans calculate income from deposits, not tax returns. This works well for borrowers who minimize taxable income.
Most jumbo lenders want 700+ credit and 20% down minimum. Some portfolio lenders accept 680 with larger down payments and reserves.
DSCR loans approve based on the property's rent, not your personal income. If rent covers 100-125% of the mortgage, you qualify regardless of W-2 income.
Expect 2-5% of the loan amount. This includes lender fees, title insurance, escrow, appraisal, and county recording fees.
Yes. FHA allows up to 6% seller concessions. Conventional allows 3-9% depending on your down payment size.
PMI is private mortgage insurance required on conventional loans under 20% down. You avoid it by putting 20% down or using a piggyback second mortgage.
Only if you're keeping the loan 5+ years. Each point costs 1% of the loan amount and typically reduces your rate by 0.25%.
ARMs have lower initial rates that adjust after 5, 7, or 10 years. They work if you're selling before the first adjustment or refinancing soon.
Yes. FHA allows purchases 2 years after Chapter 7 discharge. Conventional requires 4 years. Some non-QM lenders go as low as 12 months.
You refinance for more than you owe and take the difference in cash. Most lenders cap at 80% loan-to-value on primary homes.
HELOCs are revolving credit lines with variable rates. Home equity loans give you a lump sum with a fixed rate and fixed payment.
Yes. FHA 203k loans roll purchase and renovation costs into one mortgage. You need contractor bids and a detailed scope of work upfront.
Most purchase loans require full appraisals. Some refinances qualify for desktop or drive-by appraisals depending on equity and loan type.
You either negotiate a lower price, bring extra cash to close, or challenge the appraisal with comparable sales data. Low appraisals kill 10-15% of deals.
Yes. FHA allows up to 4 units if you live in one. This strategy works well for buyers who want rental income to offset their mortgage.
Asset depletion loans qualify you based on savings and investments, not employment income. Lenders divide your assets by 360 months to calculate qualifying income.
You pay only interest for 5-10 years, then principal and interest for the remaining term. This lowers initial payments but delays equity building.
Maybe. Lenders want 2 years in the same field. If you switched jobs but stayed in the same industry, most underwriters approve it.
Bridge loans let you buy before selling your current home. Rates are higher and terms are short, but they prevent contingent offers.
California offers CalHFA and other programs with income and purchase price limits. These stack with FHA or conventional loans for first-time buyers.
Most conventional loans cap at 45-50% DTI. FHA stretches to 56.99% with strong credit. Non-QM lenders go higher for compensating factors.
Yes. FHA and conventional loans allow gifted funds from family. You need a signed gift letter stating no repayment is expected.
Banks offer their own loan products. Brokers like SRK Capital shop 200+ lenders to find the best rate and program for your situation.
Rates shift daily based on bond markets and Fed policy. Locking your rate protects you from increases during the 30-60 day closing window.
If you're staying 3+ years and can afford the payment, buying builds equity. Renting makes sense if you're transient or saving for a larger down payment.
Non-QM loans don't follow standard Fannie/Freddie guidelines. They use alternative documentation like bank statements, assets, or rental income to qualify borrowers.
It's harder. Most refinances need 20%+ equity. If you're underwater, HARP-style programs ended, but some portfolio lenders offer high-LTV refinances.
Standard locks run 30-45 days. You can pay for 60-90 day locks if you need more time, but longer locks cost more upfront.
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.