Question 1

What credit score do I need for a community mortgage in San Luis Obispo?

Accepted Answer

Most programs start at 580, though some accept lower scores with compensating factors. Higher scores unlock better rates and terms.

Question 2

Can I use rental income to qualify?

Accepted Answer

Yes, if you can document consistent rental history. Lenders typically require 12-24 months of proof depending on the program.

Question 3

Do community mortgages require mortgage insurance?

Accepted Answer

Usually yes with less than 20% down. MI drops once you hit 20% equity, unlike FHA loans where it stays for life.

Question 4

How long does community mortgage approval take?

Accepted Answer

Expect 30-45 days from application to closing. Documentation review takes longer than conventional loans due to manual underwriting.

Question 5

Can self-employed workers qualify for community mortgages?

Accepted Answer

Absolutely. These programs accept bank statements, 1099 income, and other non-W-2 documentation that conventional loans often reject.

Community Mortgages in San Luis Obispo: Access to Homeownership Without Traditional Barriers