Redwood City Mortgage FAQs: Your Questions Answered by Local Experts

We offer over 25 loan programs including Conventional, FHA, VA, Jumbo, DSCR, Bank Statement, and specialized options for self-employed buyers and investors. Each program has different requirements and benefits based on your financial situation.

Down payment requirements vary by loan type. Conventional loans may require as little as 3%, FHA loans 3.5%, and VA loans offer zero-down options for eligible veterans. Rates vary by borrower profile and market conditions.

Minimum credit scores vary by program. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Jumbo loans often need 700 or above for competitive terms.

The process typically takes 30-45 days from application to closing. Pre-approval can be completed in 1-3 days, and underwriting usually takes 1-2 weeks once all documentation is submitted.

Jumbo loans exceed conforming loan limits set by Fannie Mae and Freddie Mac. In San Mateo County, many properties require Jumbo financing due to higher home values throughout the Bay Area.

Yes. We offer Bank Statement loans, Profit & Loss Statement loans, and 1099 loans designed specifically for self-employed borrowers who may not have traditional W-2 income documentation.

Typical documents include pay stubs, W-2s or tax returns, bank statements, photo ID, and employment verification. Self-employed borrowers may need additional business documentation depending on the loan program.

Closing costs typically range from 2-5% of the purchase price and include lender fees, title insurance, appraisal, escrow fees, and prepaid items. We provide detailed estimates during the application process.

Pre-qualification is an estimate based on basic financial information. Pre-approval involves verified documentation and credit review, giving you a conditional commitment that strengthens your offer in competitive markets.

Fixed-rate mortgages offer payment stability over the entire loan term. ARMs typically start with lower rates but adjust periodically. Your choice depends on how long you plan to own the property and risk tolerance.

Private Mortgage Insurance protects lenders when down payments are below 20% on conventional loans. PMI can be removed once you reach 20% equity through payments or appreciation.

Yes. Options include FHA loans with low down payments, conventional loans with 3% down, and Community Mortgages. First-time buyers may also qualify for local down payment assistance programs in San Mateo County.

DSCR loans qualify investors based on rental income rather than personal income. These are ideal for real estate investors purchasing rental properties in Redwood City who want to avoid traditional employment verification.

Yes. We offer Foreign National loans for non-U.S. citizens purchasing property in California. These programs have specific documentation requirements and typically require larger down payments.

ITIN loans allow borrowers without Social Security numbers to qualify using their Individual Taxpayer Identification Number. These loans help expand homeownership access for qualified borrowers in our community.

Bank Statement loans use 12-24 months of bank deposits to verify income instead of tax returns. This helps self-employed borrowers who write off business expenses and show lower taxable income.

Rates are influenced by credit score, down payment size, loan type, property type, and overall market conditions. Higher credit scores and larger down payments typically secure better rates. Rates vary by borrower profile.

Paying points means prepaying interest to reduce your rate. This makes sense if you plan to keep the loan long enough to recoup the upfront cost through lower monthly payments.

A rate lock guarantees your interest rate for a specified period, typically 30-60 days. Lock when you're satisfied with the rate and ready to proceed, protecting against rate increases during processing.

Yes, most loan programs allow gift funds from family members for part or all of your down payment. Proper documentation of the gift is required to meet lender guidelines.

DTI compares your monthly debt payments to gross income. Most lenders prefer DTI below 43-50% depending on the loan program. Lower DTI generally improves your qualification chances and rate options.

Affordability depends on income, debts, down payment, and loan type. We recommend keeping housing costs below 28-30% of gross income, though qualification limits vary by program and individual circumstances.

Asset Depletion loans qualify borrowers based on liquid assets rather than employment income. This works well for retirees or individuals with substantial savings but limited regular income documentation.

Yes, we provide construction loans for new builds and major renovations. These typically convert to permanent mortgages once construction is complete, simplifying the financing process.

Bridge loans provide short-term financing between selling your current home and purchasing a new one. This helps buyers in competitive markets make non-contingent offers or handle timing gaps.

Local brokers understand San Mateo County market conditions, property values, and regional lending requirements. We have established relationships with appraisers, title companies, and real estate professionals in the area.

HELOCs provide revolving credit lines secured by home equity with variable rates. Home equity loans offer lump-sum fixed-rate funding. Both access existing equity for renovations, debt consolidation, or other needs.

Yes, refinancing can lower your rate, change loan terms, or access equity. We evaluate whether refinancing makes financial sense based on current rates, remaining loan balance, and your goals.

We review denial reasons and explore alternative loan programs that may work better for your situation. Options include improving credit, increasing down payment, or using non-QM programs with flexible guidelines.

FHA loans offer lower credit score requirements and smaller down payments but include mortgage insurance for the loan life. Conventional loans may have better rates for strong credit and allow PMI removal.

Interest-Only loans allow paying just interest for an initial period, reducing monthly payments temporarily. These work for investors, high-income borrowers, or those expecting income increases or property appreciation.

Yes, eligible veterans, active military, and qualifying spouses can use VA loans with zero down payment and no PMI. These offer competitive rates and flexible qualification standards for those who served.

Portfolio ARMs are adjustable-rate mortgages held by the lender rather than sold to Fannie Mae or Freddie Mac. These offer more flexible qualification criteria for borrowers with unique financial situations.

An independent appraiser evaluates the property's market value based on condition, location, and comparable sales. The appraisal ensures the property value supports the loan amount requested.

Escrow is a neutral third party that holds funds and documents during the transaction. California uses escrow companies to ensure all conditions are met before transferring ownership and releasing funds.

Yes, we offer Investor loans, DSCR loans, and other programs specifically designed for rental properties. Investment property loans typically require larger down payments and have different qualification criteria than primary residences.

At closing, you sign final loan documents, pay remaining closing costs, and receive property keys. The process typically takes 1-2 hours and finalizes the property transfer and mortgage funding.

Maintain good credit, reduce debts, save for a larger down payment, avoid major purchases before closing, and provide complete documentation promptly. Stable employment history also strengthens your application significantly.