Pacifica Mortgage FAQs: Your Guide to Home Financing in San Mateo County

Pacifica buyers can access conventional loans, FHA loans, VA loans, jumbo loans, and specialized programs like bank statement loans or DSCR loans for investors. SRK Capital offers 25+ loan programs to match different buyer situations.

Down payments range from 0% for VA loans to 3% for some conventional programs and FHA loans. Jumbo loans typically require 10-20% depending on the property price and your financial profile.

Minimum credit scores vary by loan type. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Jumbo loans often need 680-700 or above.

Most purchase loans close in 30-45 days from contract acceptance. Refinances may close faster, typically 21-30 days. Complex situations or property types can extend timelines.

Yes, jumbo loans are common in San Mateo County due to higher property values. These loans exceed conforming limits and offer financing for Pacifica's coastal real estate market.

Standard documents include two years of tax returns, recent pay stubs, W-2s, bank statements, and ID. Self-employed borrowers may need profit and loss statements or business tax returns.

Absolutely. Self-employed buyers can use bank statement loans, 1099 loans, or profit and loss statement programs. These options evaluate income differently than traditional W-2 employment verification.

Closing costs typically range from 2-5% of the purchase price. These include lender fees, title insurance, escrow fees, appraisal, and prepaid items like property taxes and insurance.

Yes, pre-approval strengthens your offer and shows sellers you're a serious buyer. It also helps you understand your budget before viewing properties in this competitive coastal market.

FHA loans allow lower credit scores and down payments but require mortgage insurance for the loan's life. Conventional loans offer more flexibility and PMI drops off at 20% equity.

Many Pacifica properties require flood insurance due to coastal location. Lenders mandate coverage for homes in FEMA-designated flood zones. Your lender will confirm requirements during underwriting.

Yes, eligible veterans and service members can use VA loans for Pacifica purchases. VA loans offer 0% down payment and no PMI, making them valuable for qualifying buyers.

DSCR loans evaluate rental income rather than personal income, perfect for Pacifica investors. The property's cash flow determines qualification, not your tax returns or employment history.

Most lenders prefer DTI ratios below 43-50%. This compares your monthly debt payments to gross income. Lower ratios improve approval odds and may qualify you for better rates.

Yes, foreign national loans help non-U.S. citizens purchase Pacifica real estate. These programs have different documentation requirements and typically need larger down payments of 20-40%.

ARMs offer lower initial rates that adjust after a fixed period. They work well if you plan to sell or refinance within 5-10 years or expect income increases.

Affordability depends on income, debts, down payment, and current rates. Most buyers qualify for homes 3-5 times their annual income, but consultation provides personalized estimates.

Points are upfront fees to lower your interest rate, each costing 1% of the loan amount. They make sense if you plan to keep the loan long enough to recoup the cost through lower payments.

Yes, renovation loans like FHA 203(k) or conventional renovation mortgages finance both purchase and repairs. These programs help buyers transform Pacifica properties needing updates.

Pre-qualification is an estimate based on stated information. Pre-approval involves document verification and credit review, providing a stronger commitment letter that sellers prefer.

PMI is required on conventional loans with less than 20% down payment. It protects the lender and adds to monthly payments until you reach 20% equity through payments or appreciation.

Yes, most loan programs allow gift funds from family members for down payment and closing costs. Proper documentation including a gift letter is required to verify the funds.

Bridge loans provide short-term financing to buy a new Pacifica home before selling your current property. They help buyers move quickly without contingent offers.

Interest-only loans allow you to pay just interest for an initial period, reducing monthly payments. Principal payments begin later, making them suitable for certain investment strategies or income situations.

Bank statement loans qualify self-employed borrowers using 12-24 months of business or personal bank deposits instead of tax returns. They help buyers whose tax deductions reduce reported income.

Yes, ITIN loans serve borrowers without Social Security numbers. These programs require alternative documentation and typically higher down payments but open homeownership to more buyers.

Asset depletion loans qualify borrowers based on investment accounts and assets rather than employment income. They work well for retirees or investors with substantial savings but limited monthly income.

15-year mortgages build equity faster and cost less in total interest but have higher monthly payments. 30-year loans offer lower payments and more flexibility for other investments.

A licensed appraiser evaluates the property's market value based on condition, location, and comparable sales. The appraisal protects both you and the lender from overpaying.

Yes, rate locks guarantee your interest rate for 30-60 days during closing. This protects you from rate increases but may have fees for extended periods beyond standard timeframes.

Community mortgage programs offer down payment assistance and flexible qualification for moderate-income buyers. They help make Pacifica homeownership more accessible through reduced requirements.

Hard money loans are short-term, asset-based financing with faster approval but higher rates. Investors use them for fix-and-flip projects or when traditional financing isn't available quickly enough.

HELOCs let you borrow against your Pacifica home's equity with a revolving credit line. You draw funds as needed during the draw period and pay interest only on what you use.

Yes, refinancing can lower your rate, change loan terms, or access equity. It makes sense when rates drop, your credit improves, or you need cash for home improvements or debt consolidation.

Portfolio ARMs are adjustable-rate mortgages held by the lender rather than sold to investors. They offer more flexible underwriting and work well for unique properties or borrower situations.

Yes, lenders require proof of homeowners insurance before funding. Coastal Pacifica properties may have higher premiums due to location, and coverage must meet lender minimum requirements.

Reverse mortgages allow homeowners 62+ to convert home equity into income without monthly payments. The loan is repaid when you sell, move, or pass away.

Investment properties typically require larger down payments (15-25%) and have stricter qualification standards. Rates may be slightly higher, but rental income can help you qualify through DSCR programs.

Construction loans finance building new homes or major renovations. They disburse funds in stages as work completes and typically convert to permanent mortgages after construction finishes.

Assumable mortgages are rare and typically limited to FHA, VA, or USDA loans. You must qualify with the lender and may need to pay the seller for their equity difference in cash.