Question 1

What credit score do I need to buy in Menlo Park?

Accepted Answer

Conventional loans start at 620, but jumbo lenders want 700+ for competitive rates. Stock-based income programs often require 720 minimum.

Question 2

How much down payment do I need for a Menlo Park home?

Accepted Answer

Jumbo loans typically require 10-20% down. First-time buyers can sometimes get away with 10%, but expect better rates at 20%.

Question 3

Can I use RSU income to qualify for a mortgage?

Accepted Answer

Yes, but lenders handle it differently. Some average two years of vesting history. Others use bank statement deposits to prove actual cash flow.

Question 4

What's the difference between conforming and jumbo loans?

Accepted Answer

Conforming loans stay under $1,149,825 and follow Fannie/Freddie rules. Jumbo loans exceed that limit and have stricter requirements but more flexibility.

Question 5

Do I need tax returns if I use a bank statement loan?

Accepted Answer

No. Bank statement loans qualify you on deposits, not tax returns. Lenders review 12-24 months of business or personal bank accounts.

Question 6

How long does it take to close a mortgage in Menlo Park?

Accepted Answer

Plan on 30-45 days for conventional or jumbo loans. Bank statement and asset depletion programs can take 45-60 days due to documentation review.

Question 7

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 loans need paystubs, tax returns, and bank statements. Non-QM programs replace tax returns with bank statements, profit/loss statements, or asset account statements.

Question 8

Can I buy a Menlo Park rental property with no income verification?

Accepted Answer

DSCR loans qualify you on the property's rental income, not your personal income. No tax returns or paystubs required.

Question 9

What's the San Mateo County conforming loan limit?

Accepted Answer

The 2026 conforming limit is $1,149,825. Most Menlo Park homes exceed that, requiring jumbo financing.

Question 10

Are interest rates higher on jumbo loans?

Accepted Answer

Not always. Jumbo rates sometimes match or beat conforming rates for strong borrowers with 20% down and 740+ credit.

Question 11

Can I use stock options or unvested RSUs as down payment?

Accepted Answer

Vested shares work as down payment once liquidated. Unvested RSUs don't count until they vest and cash out.

Question 12

What's an asset depletion loan?

Accepted Answer

Asset depletion converts investment accounts into qualifying income. Lenders divide your assets by 360 months to calculate monthly income.

Question 13

Do I need mortgage insurance on a jumbo loan?

Accepted Answer

Not if you put 20% down. Below 20%, some jumbo lenders charge PMI while others use lender-paid MI or higher rates.

Question 14

Can I buy a second home in Menlo Park while keeping my primary residence?

Accepted Answer

Yes, but you'll need 10-20% down and prove reserves to cover both mortgages for 6-12 months.

Question 15

What's a DSCR loan and who uses it?

Accepted Answer

DSCR loans qualify investors based on rental income, not personal income. Popular with high-earners buying investment properties who don't want to show W-2 income.

Question 16

How do lenders calculate income for self-employed borrowers?

Accepted Answer

Traditional loans average two years of tax returns. Bank statement loans use 12-24 months of deposits with business expense deductions.

Question 17

Can foreign nationals buy property in Menlo Park?

Accepted Answer

Yes. Foreign national loans require 20-30% down and don't need U.S. credit or tax returns. Visa holders and non-residents both qualify.

Question 18

What are typical closing costs in San Mateo County?

Accepted Answer

Expect 2-3% of the purchase price. On a $2M home, that's $40,000-$60,000 including lender fees, title, escrow, and appraisal.

Question 19

Should I buy points to lower my mortgage rate?

Accepted Answer

Only if you'll keep the loan 5+ years. Each point costs 1% of the loan amount and typically drops your rate 0.25%.

Question 20

Can I get a mortgage with an ITIN instead of a Social Security number?

Accepted Answer

Yes. ITIN loans work for borrowers without SSNs. Expect 15-25% down and slightly higher rates than conventional loans.

Question 21

What's a bridge loan and when would I use one?

Accepted Answer

Bridge loans let you buy before selling your current home. You borrow against existing equity to fund the new down payment.

Question 22

How much do I need in reserves for a jumbo loan?

Accepted Answer

Most jumbo lenders want 6-12 months of mortgage payments in reserves. For a $15,000 payment, that's $90,000-$180,000 in liquid assets.

Question 23

Can I use a gift for my down payment on a Menlo Park home?

Accepted Answer

Yes on conventional loans. Jumbo lenders typically require at least 5-10% from your own funds, then allow gifts for the rest.

Question 24

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows 3.5% down with 580 credit but charges mortgage insurance for life. Conventional needs 5% down, better credit, but PMI drops at 20% equity.

Question 25

Do I need a 20% down payment to avoid PMI?

Accepted Answer

On conventional loans, yes. FHA charges MI regardless of down payment. Jumbo loans eliminate PMI at 20% down.

Question 26

Can I get a VA loan in Menlo Park?

Accepted Answer

Yes if you're a qualifying veteran or active duty. VA loans allow zero down up to the conforming limit of $1,149,825 with no PMI.

Question 27

What's a portfolio ARM and who should consider one?

Accepted Answer

Portfolio ARMs adjust after 3, 5, 7, or 10 years. Smart for buyers who expect to refinance, move, or pay off early.

Question 28

How do I qualify for a construction loan in Menlo Park?

Accepted Answer

Construction loans need 20-25% down, detailed build plans, and licensed contractor agreements. You'll need strong credit and 12+ months reserves.

Question 29

Can I use rental income from a Menlo Park property to qualify?

Accepted Answer

Yes. Conventional loans use 75% of projected rent. DSCR loans use actual or market rent without income limits.

Question 30

What's a profit and loss statement loan?

Accepted Answer

Self-employed borrowers provide CPA-prepared P&L statements instead of full tax returns. Faster than bank statement loans for established businesses.

Question 31

Are adjustable rate mortgages risky?

Accepted Answer

Not if you understand rate caps and adjustment periods. ARMs work well when you'll sell or refinance before the first adjustment.

Question 32

Can I get a HELOC on my Menlo Park home?

Accepted Answer

Yes. HELOCs let you borrow against equity as needed. Rates are variable and most lenders cap combined loans at 80-90% of home value.

Question 33

What's the difference between a HELOC and a home equity loan?

Accepted Answer

HELOCs are revolving credit lines with variable rates. Home equity loans give you a lump sum with a fixed rate and payment.

Question 34

Do I need an appraisal for a refinance?

Accepted Answer

Usually yes. Some lenders waive appraisals for conforming loans under 80% LTV with strong payment history.

Question 35

Can I refinance out of PMI once I hit 20% equity?

Accepted Answer

Yes. PMI automatically cancels at 22% equity on conventional loans, but you can request removal at 20% with a new appraisal.

Question 36

What's a reverse mortgage and who qualifies?

Accepted Answer

Reverse mortgages let homeowners 62+ convert equity into cash without monthly payments. The loan is repaid when you sell or pass away.

Question 37

Can I assume the seller's mortgage in Menlo Park?

Accepted Answer

Only if it's an FHA, VA, or USDA loan. Most conventional and jumbo loans have due-on-sale clauses that prevent assumptions.

Question 38

What happens if I'm self-employed for less than two years?

Accepted Answer

Traditional loans require two years of self-employment history. Bank statement loans sometimes work with 12 months if you have prior industry experience.

Question 39

How do interest-only loans work?

Accepted Answer

You pay only interest for 5-10 years, then principal and interest after. Monthly payments jump significantly when the interest-only period ends.

Question 40

Can I get a hard money loan for a Menlo Park investment property?

Accepted Answer

Yes. Hard money loans fund fast based on property value, not your credit. Expect higher rates and 12-36 month terms for fix-and-flip projects.

Menlo Park Mortgage FAQs: Expert Answers for Silicon Valley Homebuyers