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

Conventional loans want 620 minimum, FHA allows 580 with 3.5% down. We close most Tracy deals with scores between 640-740.

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

Yes, bank statement loans work great for Tracy business owners and 1099 contractors. We use 12-24 months of deposits instead of tax returns.

Standard purchase loans close in 21-30 days. Refinances take 25-35 days, cash-out refis sometimes stretch to 40 days with appraisal delays.

No, Tracy doesn't qualify for USDA rural housing loans. The city exceeds population limits for the program despite being in San Joaquin County.

Bring two years of tax returns, 60 days of pay stubs, two months of bank statements, and photo ID. Self-employed borrowers need additional business documentation.

FHA wins with credit under 680 or down payment under 10%. Conventional costs less monthly if you have 680+ credit and 10% down.

Yes, DSCR loans approve based on rental income, not your W-2. You need 20-25% down and the property must cash flow at 1.0 ratio minimum.

Expect 2-3% of the purchase price. On a $650,000 home, that's $13,000-$19,500 including lender fees, title, escrow, and prepaid property taxes.

Put down less than 20% on conventional loans and you'll pay PMI—typically $100-300 monthly. It drops off automatically at 78% loan-to-value.

Absolutely, VA loans are popular in Tracy with zero down payment required. You'll pay a funding fee (1.4-3.6%) unless you're disabled.

You pay only interest for 5-10 years, then principal kicks in. Works for investors expecting appreciation or high earners with variable income.

ARMs offer lower initial rates for 3, 5, 7, or 10 years, then adjust annually. Good if you're selling or refinancing within the fixed period.

Yes, Foreign National loans require 20-30% down and don't need US credit or Social Security numbers. Rates run 0.5-1% higher than conventional.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit—sellers take you seriously.

Investment properties require 6 months PITI in the bank. Primary homes usually don't, but reserves strengthen your offer in competitive situations.

Yes, ITIN loans work for borrowers without Social Security numbers. You'll need 15-20% down and rates run slightly higher than conventional.

Bridge loans let you buy before selling your current home. Rates are higher but you avoid contingent offers that sellers hate.

Most programs cap DTI at 43-50%, meaning monthly debts can't exceed that percentage of gross income. FHA stretches to 56.9% with strong credit.

Each point costs 1% of the loan and drops your rate by roughly 0.25%. Makes sense if you're keeping the loan past the break-even point.

Only on refinances when you have enough equity. Purchase loans require you to bring closing costs to the table separately from down payment.

We qualify you based on investment accounts, not income. Divide assets by 360 months to create qualifying income—perfect for retirees.

HELOCs let you borrow against home equity as needed, paying interest only on what you use. Rates adjust monthly with the prime rate.

HELOCs are revolving credit lines with variable rates. Home Equity Loans give you a lump sum with fixed rates and set repayment terms.

Yes, construction loans fund both purchase and renovation in one loan. You'll need detailed contractor bids and 20-25% down for investment properties.

Jumbo loans start above $806,500 in San Joaquin County. Most Tracy buyers stay under that threshold, but jumbo rates are competitive now.

CPAs prepare a P&L showing business income instead of full tax returns. Faster than traditional self-employed docs but requires 20% down minimum.

FHA allows purchase two years after Chapter 7 discharge, four years for conventional. Chapter 13 requires 12 months of on-time plan payments.

These are adjustable-rate loans held by lenders, not sold to Fannie Mae. They offer flexibility for complex income or credit situations.

Hard money lends on property value, not your credit or income. Expect 10-12% rates and 12-24 month terms—used for fix-and-flip projects.

These programs offer down payment assistance or rate discounts for specific professions or areas. Availability varies—ask about current Tracy programs.

FHA and VA loans are assumable with lender approval. You'll need to qualify and cover the equity difference between loan balance and purchase price.

Rate locks guarantee your rate for 30-60 days while closing. Lock when rates feel right—you can't unlock if rates drop later.

Lenders use 75% of market rent from appraisal or current lease. If you're house-hacking, rental income can cover part of your mortgage payment.

These loans share future appreciation with the lender in exchange for lower rates or reduced down payment. Rare in Tracy's current market.

Homeowners 62+ can convert equity to cash without monthly payments. The loan gets repaid when you sell, move, or pass away.

Credit score drops before closing, job changes mid-process, undisclosed debts, or low appraisals kill most deals. Don't change anything financial during escrow.

Brokers shop 200+ lenders to find your best rate and program. Banks offer only their products—you're comparing one option versus hundreds.

Rates vary by borrower profile and market conditions. Compare APR across multiple quotes and check programs beyond conventional—specialized loans often surprise buyers.