Your Hillsborough Mortgage Questions Answered - Expert Guidance from SRK Capital

Jumbo loans are commonly used in Hillsborough since home values often exceed conforming loan limits. We also offer portfolio loans, interest-only mortgages, and adjustable rate mortgages tailored to high-value properties.

Down payment requirements vary by loan type. Conventional loans typically require 10-20% down, while jumbo loans often need 20-30%. Some specialized programs may offer different requirements based on your financial profile.

Most lenders prefer credit scores of 680 or higher for jumbo loans in Hillsborough. Higher scores often qualify for better rates. Rates vary by borrower profile and market conditions.

Standard mortgage approvals typically take 30-45 days from application to closing. The timeline can vary based on property type, loan complexity, and how quickly you provide required documentation.

You'll need recent pay stubs, tax returns from the past two years, bank statements, employment verification, and identification. Self-employed buyers may need additional business documentation and profit-loss statements.

Properties over five acres or with unique features may require specialized appraisals and loan programs. We help structure financing for estates, equestrian properties, and homes with substantial acreage.

FHA loans require lower down payments (3.5%) but include mortgage insurance. Conventional loans need higher down payments but offer more flexibility. Most Hillsborough purchases use conventional or jumbo financing.

Yes, bank statement loans work well for self-employed buyers who have strong cash flow but complex tax returns. We analyze 12-24 months of bank statements to determine income qualification.

Closing costs typically range from 2-5% of the purchase price. This includes lender fees, title insurance, escrow fees, and property taxes. Higher-priced homes may have proportionally lower percentage costs.

California property taxes are approximately 1% of assessed value plus local assessments. Your lender typically collects these monthly through an escrow account along with your mortgage payment and insurance.

Private Mortgage Insurance protects lenders when down payments are below 20%. PMI typically costs 0.3-1.5% of the loan amount annually. Jumbo loans often avoid PMI by requiring larger down payments.

Yes, pre-approval is strongly recommended. It shows sellers you're a serious buyer and helps you understand your budget. Pre-approval involves verifying income, assets, and credit before you make an offer.

ARMs offer lower initial rates than fixed mortgages, which can be beneficial if you plan to sell or refinance within a few years. The rate adjusts after an initial fixed period based on market conditions.

Yes, interest-only loans allow you to pay just interest for a set period, reducing monthly payments initially. These work well for buyers with variable income or who plan to make large principal payments.

Jumbo loans require strong credit (typically 700+), substantial income documentation, and significant reserves. Lenders look for at least 6-12 months of payments in reserve and debt-to-income ratios under 43%.

We offer specialized programs including bank statement loans, 1099 loans, and profit-loss statement loans. These alternatives verify income through deposits and business documentation rather than traditional W-2s.

Yes, we offer foreign national loans for international buyers. These programs require larger down payments (typically 30-40%) and focus on U.S. assets and the property's value rather than U.S. credit history.

Points are prepaid interest that lower your rate. One point equals 1% of the loan amount. Buying points makes sense if you plan to keep the loan long enough to recoup the upfront cost through lower payments.

Lenders prefer debt-to-income ratios below 43% for most loans. This ratio compares your monthly debt payments to gross income. Jumbo loans may allow higher ratios for borrowers with strong compensating factors.

Yes, a home equity line of credit from your existing property can provide down payment funds. This strategy works well for buyers with substantial equity who want to avoid selling before purchasing.

Pre-qualification is an estimate based on information you provide. Pre-approval involves documentation review and credit verification, giving you a stronger position when making offers on Hillsborough properties.

Yes, we offer investor loans and DSCR loans that qualify based on rental income rather than personal income. These programs work for buyers purchasing properties as investments or second homes.

A rate lock guarantees your interest rate for a specific period, typically 30-60 days. This protects you from rate increases during the closing process. Rates vary by borrower profile and market conditions.

An appraiser evaluates the property's market value by examining comparable sales, condition, and features. Lenders use this to ensure the loan amount doesn't exceed the property's value.

Yes, construction loans cover land purchase and building costs. These typically convert to permanent mortgages after construction completes. Requirements include detailed building plans, contractor information, and larger down payments.

We offer super jumbo loans with no upper limit for qualified borrowers. These require exceptional credit, substantial documentation, and significant reserves, but provide financing for Hillsborough's highest-value properties.

Bridge loans provide short-term financing using equity from your current home, allowing you to buy before selling. These typically have higher rates but offer flexibility during transitions between properties.

Portfolio ARMs are adjustable mortgages held by the lender rather than sold to investors. These offer more flexible underwriting and can accommodate unique financial situations that don't fit standard guidelines.

Yes, asset depletion loans calculate income based on your total assets divided by the loan term. This works well for retirees or high-net-worth individuals with substantial assets but limited traditional income.

We offer expedited processing and can work with your timeline. Hard money loans provide even faster closings (7-14 days) when speed is critical, though these have higher rates and shorter terms.

Local brokers understand San Mateo County's unique market and have relationships with appraisers, title companies, and lenders familiar with Hillsborough properties. This expertise helps avoid delays and complications during closing.

Community mortgages offer flexible underwriting for buyers who might not qualify under traditional guidelines. These programs consider factors beyond credit scores and provide alternatives for diverse financial situations.

Yes, ITIN loans allow borrowers without Social Security numbers to qualify for mortgages. Requirements include work history, credit references, and larger down payments, typically 15-25%.

Hillsborough has strict building codes and zoning requirements. Your lender will ensure the property meets all standards during underwriting. Work with professionals familiar with local regulations to avoid complications.

Compare total costs including interest rate, points, fees, and closing costs. Look at both monthly payment and total interest paid over the loan term. Consider how long you plan to keep the loan.