Paso Robles Mortgage FAQs: Your Questions Answered by Local Experts

Most mortgage applications take 30-45 days from initial approval to closing. Timeline varies based on loan type, property complexity, and how quickly you provide required documentation.

FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Better scores unlock lower rates and more loan options.

Yes, specialized loan programs exist for agricultural properties in Paso Robles. These include USDA loans, portfolio loans, and certain jumbo products designed for rural and agricultural land.

Down payment requirements range from 0% for VA and USDA loans to 3% for conventional and FHA loans. Investment properties typically require 15-25% down.

Absolutely. Bank statement loans, profit and loss loans, and 1099 loans work well for self-employed borrowers. We evaluate income using 12-24 months of bank statements or financial records.

Standard requirements include two years of tax returns, recent pay stubs, two months of bank statements, and photo ID. Self-employed applicants may need additional business documentation.

Closing costs typically range from 2-5% of the purchase price. This includes lender fees, title insurance, escrow fees, and prepaid items like property taxes and insurance.

FHA loans require lower credit scores and down payments but include mortgage insurance premiums. Conventional loans offer more flexibility and can eliminate mortgage insurance with 20% down.

Yes, we offer foreign national loans for international buyers. These programs typically require 20-30% down and don't require US credit history or Social Security numbers.

Rates vary by borrower profile and market conditions. Your specific rate depends on credit score, down payment, loan type, and property details. Contact us for personalized quotes.

FHA loans always require mortgage insurance. Conventional loans need PMI with less than 20% down. VA and USDA loans have different insurance structures built into their programs.

Most loan programs allow gift funds from immediate family members. You'll need a gift letter stating the money doesn't require repayment and documentation showing the transfer.

DSCR loans evaluate rental property income rather than personal income. They're ideal for investors purchasing income-producing properties without employment verification requirements.

Jumbo loans exceed conforming loan limits and typically require higher credit scores, larger down payments, and more reserves. They're common for higher-priced Paso Robles properties.

Yes, second home loans are available with competitive terms. You'll need to meet occupancy requirements and typically provide a larger down payment than primary residences require.

ARMs offer lower initial rates that adjust after a fixed period. They benefit buyers planning to sell or refinance within 5-10 years before rate adjustments begin.

Lenders typically prefer total housing costs below 28% of gross income and total debts below 43%. Your specific amount depends on income, debts, credit score, and chosen loan program.

Bridge loans provide short-term financing when purchasing before selling your current home. They help buyers compete in competitive markets without sale contingencies.

Yes, ITIN loans allow borrowers without Social Security numbers to purchase homes. These programs evaluate creditworthiness through alternative documentation and payment histories.

Larger down payments reduce monthly payments, eliminate mortgage insurance, qualify for better rates, and strengthen purchase offers. They also build immediate equity in your property.

Interest-only loans allow you to pay just interest for an initial period, reducing monthly payments. They work well for buyers expecting income increases or planning short-term ownership.

Portfolio ARMs are held by lenders rather than sold to investors, offering flexibility for unique situations. They work well for non-traditional income sources or special property types.

Yes, refinancing can lower your rate, eliminate PMI, or access equity. You'll need sufficient equity, acceptable credit, and the costs should justify the long-term savings.

A HELOC is a revolving credit line secured by home equity. You withdraw funds as needed during the draw period and pay interest only on amounts borrowed.

Most loans require professional appraisals to confirm property value. Some refinances may qualify for appraisal waivers, and certain loan types have specific appraisal requirements.

You can negotiate with the seller, increase your down payment, or appeal the appraisal with supporting data. Some buyers choose to walk away using appraisal contingencies.

Construction loans and renovation loans like FHA 203(k) allow you to finance both purchase and repairs. These programs bundle renovation costs into your mortgage amount.

Points are prepaid interest that reduce your rate. They make sense if you'll keep the loan long enough to recoup costs through monthly savings.

Property taxes are typically 1-1.25% of assessed value, paid through your mortgage escrow account. New purchases reassess at current market value under California Proposition 13.

Yes, rate locks protect against increases during your loan process. Lock periods typically range from 30-60 days and should cover your expected closing timeline.

Pre-qualification is an informal estimate based on stated information. Pre-approval involves documentation review and underwriter evaluation, providing stronger purchase credibility.

California offers various first-time buyer assistance programs, including down payment assistance and favorable loan terms. FHA and conventional loans also provide accessible options.

You can withdraw from retirement accounts for home purchases. First-time buyers may avoid early withdrawal penalties, though income taxes may still apply on traditional account withdrawals.

Hard money loans provide quick funding based on property value rather than credit. They're used for fix-and-flip projects, auctions, or situations requiring fast closings.

Waiting periods vary by loan type: FHA requires 2 years after Chapter 7, conventional typically 4 years. Timelines may be shorter with extenuating circumstances.

In community property states like California, non-borrowing spouse income may help with debt ratios in some programs. Requirements vary by lender and loan type.

You'll review and sign loan documents, pay closing costs, and receive property keys. The title company handles fund transfers and recording with San Luis Obispo County.

Yes, investor loans including DSCR and conventional investment property loans are available. These typically require larger down payments and evaluate property income potential.

Asset depletion loans qualify borrowers using investment accounts and assets rather than employment income. They work well for retirees or high-net-worth individuals with substantial savings.

VA loans offer 0% down, no mortgage insurance, and competitive rates for eligible veterans and service members. They're backed by the Department of Veterans Affairs.