Question 1

What credit score do I need for a community mortgage in Menlo Park?

Accepted Answer

Most programs accept scores from 580 to 620. Lenders review rent payment history and utility bills when credit files lack traditional tradelines.

Question 2

How much down payment is required?

Accepted Answer

Typically 3-5% of the purchase price. You can combine this with down payment assistance grants from San Mateo County to reduce out-of-pocket costs.

Question 3

Do community mortgages have higher interest rates?

Accepted Answer

Yes, expect rates 0.50-1.00% above conventional loans. The tradeoff is approval when traditional programs would decline your application.

Question 4

Can I use a community mortgage for investment properties?

Accepted Answer

No, these programs require owner occupancy for at least three years. They're designed for primary residences only.

Question 5

How long does approval take?

Accepted Answer

Plan for 45-60 days due to manual underwriting of alternative credit data. Rush closings rarely work with these programs.

Community Mortgages in Menlo Park: Flexible Paths to Silicon Valley Homeownership