Half Moon Bay Mortgage FAQs: Your Complete Guide to Coastal Home Financing

Down payment requirements vary by loan type. Conventional loans typically require 3-20%, FHA loans need 3.5%, and VA loans offer 0% down for eligible veterans. Rates vary by borrower profile and market conditions.

Most conventional loans require a minimum 620 credit score. FHA loans accept scores as low as 580 with 3.5% down, or 500 with 10% down. Higher scores generally qualify for better interest rates.

The typical mortgage process takes 30-45 days from application to closing. Pre-approval can be completed in 1-3 days. Complex loans or property issues may extend the timeline slightly.

You'll need recent pay stubs, W-2s, tax returns for two years, bank statements, and photo ID. Self-employed borrowers may need additional business documentation and profit-and-loss statements.

Coastal properties may require additional insurance for flood and erosion risks. Lenders often scrutinize coastal zone regulations and environmental disclosures more carefully during the approval process.

FHA loans require lower down payments and credit scores but include mortgage insurance for the loan's life. Conventional loans offer more flexibility and can eliminate PMI once you reach 20% equity.

Yes, you can finance a second home with conventional loans requiring typically 10-20% down. The property must be occupied by you part-time and located a reasonable distance from your primary residence.

Closing costs typically range from 2-5% of the purchase price. They include loan origination fees, title insurance, escrow fees, appraisal costs, and recording fees specific to San Mateo County.

PMI is required on conventional loans when you put down less than 20%. It protects the lender and typically costs 0.3-1.5% of the loan amount annually until you reach 20% equity.

Jumbo loans exceed conforming loan limits set by Fannie Mae and Freddie Mac. In San Mateo County, loans above $1,149,825 are considered jumbo and typically require higher credit scores and larger down payments.

Absolutely. Self-employed borrowers can use bank statement loans, profit-and-loss statement loans, or 1099 loans. These programs verify income through bank deposits or business documentation rather than W-2s.

DSCR loans are for investment properties and qualify based on rental income, not personal income. The property's rent must cover the mortgage payment, making them ideal for investors with multiple properties.

Yes, first-time buyers can access FHA loans with 3.5% down, conventional loans with 3% down, and community mortgage programs. California also offers down payment assistance programs for eligible buyers.

ARMs offer lower initial rates that adjust after a fixed period. Common options include 5/1, 7/1, and 10/1 ARMs where the first number indicates years of fixed rates before annual adjustments begin.

Yes, eligible veterans, active military, and qualifying spouses can use VA loans with no down payment and no PMI. VA loans offer competitive rates and limited closing costs for qualified borrowers.

Pre-approval is a lender's conditional commitment based on verified financial information. It strengthens your offer in competitive markets and helps you understand your budget before house hunting.

Most lenders use a debt-to-income ratio of 43-50%, meaning your total monthly debts shouldn't exceed this percentage of gross income. A mortgage professional can calculate your specific purchasing power.

Points are prepaid interest that lower your rate. One point costs 1% of the loan amount and typically reduces your rate by 0.25%. They make sense if you plan to keep the loan long-term.

Yes, ITIN loans allow borrowers without Social Security numbers to qualify using an Individual Taxpayer Identification Number. These programs verify income through alternative documentation methods.

Bridge loans provide short-term financing between selling your current home and buying a new one. They help Half Moon Bay buyers make non-contingent offers in competitive market conditions.

Bank statement loans use 12-24 months of personal or business bank deposits to calculate income. They're ideal for self-employed borrowers, business owners, or those with variable income sources.

Interest-only mortgages allow you to pay just interest for an initial period, typically 5-10 years. Payments increase when principal payments begin, making them suitable for buyers expecting income growth.

Yes, foreign national loans are available for non-U.S. citizens. These programs typically require larger down payments of 20-40% and use international credit and income documentation.

Home equity loans provide a lump sum with fixed rates, while HELOCs offer a revolving credit line with variable rates. Both use your home's equity as collateral for the loan.

California offers several down payment assistance programs for eligible buyers. These include grants, low-interest second mortgages, and employer-assisted housing programs through participating lenders.

Asset depletion loans qualify borrowers based on liquid assets rather than income. Lenders divide your total assets by 360 months to calculate a monthly income figure for qualification purposes.

Reverse mortgages allow homeowners 62+ to convert home equity into cash without monthly payments. The loan is repaid when you sell, move, or pass away. Requirements include financial assessment and counseling.

Fifteen-year mortgages build equity faster and have lower interest rates but higher monthly payments. Thirty-year mortgages offer lower payments and more cash flow flexibility but cost more in total interest.

Yes, construction loans finance building a new home. They typically convert to permanent mortgages after construction completes. Lenders require detailed building plans, contractor credentials, and construction timelines.

Portfolio ARMs are held by lenders rather than sold to investors. They offer more flexible underwriting for unique situations and adjust based on market indices after the initial fixed period.

USDA loans require the property to be in an eligible rural area and borrowers to meet income limits. While most of Half Moon Bay may not qualify as rural, some surrounding areas might be eligible.

A licensed appraiser inspects the property and compares it to recent sales of similar homes. The appraisal determines market value, which must meet or exceed the purchase price for loan approval.

Yes, refinancing lets you change your rate, term, or loan type. Consider refinancing when rates drop, your credit improves, or you want to eliminate PMI by reaching 20% equity.

Title insurance protects against ownership disputes, liens, or title defects. Lenders require lender's title insurance, and buyers typically purchase owner's coverage for protection during ownership.

Earnest money demonstrates your commitment to purchase and is typically 1-3% of the purchase price. It's held in escrow and applied to your down payment or closing costs at closing.