Question 1

What's the conforming loan limit in Redwood City right now?

Accepted Answer

San Mateo County's conforming limit is $1,149,825 as of 2026. Anything above that requires jumbo financing, which applies to most purchases here.

Question 2

How much do I need for a down payment in Redwood City?

Accepted Answer

Conventional loans need 3-5% down for conforming amounts. Jumbo loans typically require 10-20% depending on credit and loan size.

Question 3

Can I buy in Redwood City with an FHA loan?

Accepted Answer

Yes, but FHA caps at $644,000 in San Mateo County. That limits you to condos and smaller properties at current prices.

Question 4

What credit score do I need for a jumbo loan here?

Accepted Answer

Most jumbo lenders want 700 minimum. Best rates start at 740, especially for loan amounts over $2 million.

Question 5

I'm self-employed — what income documentation works in Redwood City?

Accepted Answer

Bank statement loans use 12-24 months of deposits. We also do P&L statement loans and 1099 loans for contractors and business owners.

Question 6

How long does mortgage approval take in this market?

Accepted Answer

Most purchases close in 30 days with complete documentation. Cash-out refinances can take 35-45 days depending on appraisal turnaround.

Question 7

Do I need reserves for a jumbo loan in Redwood City?

Accepted Answer

Yes, typically 6-12 months of mortgage payments in liquid assets. Higher loan amounts may require 18-24 months.

Question 8

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows 3.5% down with 580 credit but adds mortgage insurance for life. Conventional needs higher credit but drops PMI at 78% loan-to-value.

Question 9

Can I use a VA loan in Redwood City?

Accepted Answer

Yes, VA loans work up to $1,149,825 with zero down for qualified veterans. Above that you'll need a down payment for the excess.

Question 10

What are closing costs on a Redwood City purchase?

Accepted Answer

Expect 2-3% of purchase price. That includes lender fees, title, escrow, and county transfer taxes but not prepaid items like insurance.

Question 11

Should I pay points to buy down my rate?

Accepted Answer

Points make sense if you're keeping the loan past the breakeven period, usually 4-6 years. Redwood City buyers often refinance sooner.

Question 12

What's the property tax rate in Redwood City?

Accepted Answer

Base rate is 1% of assessed value under Prop 13. Add district assessments and you'll pay around 1.2-1.3% annually.

Question 13

Can I avoid PMI without 20% down?

Accepted Answer

Yes, lender-paid mortgage insurance programs exist where you take a slightly higher rate instead of monthly PMI. There are also 80-10-10 piggyback options.

Question 14

How do adjustable rate mortgages work?

Accepted Answer

ARMs offer lower initial rates fixed for 3, 5, 7, or 10 years, then adjust annually based on an index. They work well if you'll move or refinance before adjustment.

Question 15

What neighborhoods in Redwood City are most affordable?

Accepted Answer

East Redwood City and parts of Redwood Shores offer lower entry points. Downtown and Emerald Hills run higher due to schools and commute access.

Question 16

Can foreign nationals get mortgages in Redwood City?

Accepted Answer

Yes, we do foreign national loans with 30-40% down. These work for international buyers relocating for work or investing in the area.

Question 17

What's a DSCR loan and who uses it?

Accepted Answer

Debt service coverage ratio loans qualify based on rental income, not personal income. Investors buying Redwood City rentals use these when they don't want to show W-2s.

Question 18

How does a bridge loan work for moving up?

Accepted Answer

Bridge loans let you access home equity before selling. You can make non-contingent offers and close fast, then pay off the bridge when your old house sells.

Question 19

Should I get pre-approved or pre-qualified?

Accepted Answer

Get fully underwritten pre-approval. Redwood City is competitive and sellers won't consider soft pre-quals when they have verified approvals.

Question 20

What documentation do I need to start a mortgage application?

Accepted Answer

Two years of W-2s and tax returns, 60 days of bank statements, recent pay stubs, and photo ID. Self-employed borrowers need full business returns.

Question 21

Can I use gift funds for my down payment?

Accepted Answer

Yes, most loan programs allow gift funds from family members with a signed letter. Jumbo loans may limit gifts to a percentage of the total down payment.

Question 22

What's an ITIN loan and who qualifies?

Accepted Answer

ITIN loans use Individual Taxpayer Identification Numbers instead of Social Security numbers. Foreign nationals and non-residents with US income can qualify.

Question 23

How do interest-only loans work?

Accepted Answer

You pay only interest for 10 years, then principal and interest after. These help cash flow on jumbo loans but require strong income and assets.

Question 24

What are today's mortgage rates in Redwood City?

Accepted Answer

Rates vary by borrower profile and market conditions. Current pricing depends on credit score, down payment, loan type, and property details.

Question 25

Can I buy a condo with a jumbo loan?

Accepted Answer

Yes, but the building needs 10% owner occupancy and adequate reserves. Warrantable condos get better rates than non-warrantable.

Question 26

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

Accepted Answer

Home equity loans give you a lump sum with fixed payments. HELOCs work like credit cards with variable rates and draw periods.

Question 27

Do I need an appraisal for a refinance?

Accepted Answer

Most refinances require an appraisal. Some conventional loans offer appraisal waivers if you have strong equity and low loan-to-value.

Question 28

How does SRK CAPITAL find better rates than big banks?

Accepted Answer

We shop your scenario across 200+ wholesale lenders who compete for the business. Banks only offer their own rates with no comparison.

Question 29

Can I get a construction loan in Redwood City?

Accepted Answer

Yes, construction loans fund the build and convert to permanent financing. You need detailed plans, licensed contractors, and 20-25% down.

Question 30

What's a portfolio ARM and when does it make sense?

Accepted Answer

Portfolio ARMs are held by lenders, not sold to Fannie or Freddie. They offer flexibility on credit and documentation for borrowers who don't fit conventional boxes.

Question 31

Can I remove PMI before hitting 80% loan-to-value?

Accepted Answer

Yes, if your home appreciates you can request PMI removal with a new appraisal. Most lenders require 24 months of payments before considering it.

Question 32

What's asset depletion and how does it work?

Accepted Answer

Asset depletion loans calculate income by dividing liquid assets by loan term. Retirees and high-net-worth buyers with low reported income use these.

Question 33

How much equity do I need for a cash-out refinance?

Accepted Answer

Conventional cash-out maxes at 80% loan-to-value. Jumbo cash-out typically caps at 70-75% depending on credit and loan amount.

Question 34

Are there down payment assistance programs in San Mateo County?

Accepted Answer

CalHFA offers down payment assistance statewide, but income limits often disqualify Redwood City buyers. Check current limits before assuming eligibility.

Question 35

What happens if my appraisal comes in low?

Accepted Answer

You can renegotiate price, bring more cash, or challenge the appraisal with comparable sales. In competitive markets, buyers often make up the difference.

Question 36

Can I lock my rate before finding a property?

Accepted Answer

Some lenders offer float-down locks, but true rate locks require a signed purchase contract. We can show you current pricing to help with budgeting.

Question 37

What's the minimum loan amount for a jumbo mortgage?

Accepted Answer

Jumbo loans start at $1,149,826 in San Mateo County. Some lenders set internal minimums higher, especially for portfolio products.

Question 38

How do I choose between a 15-year and 30-year mortgage?

Accepted Answer

Fifteen-year loans build equity faster with lower rates but higher payments. Thirty-year loans keep payments lower and preserve cash flow.

Question 39

What's the advantage of working with a mortgage broker?

Accepted Answer

Brokers shop multiple lenders and negotiate on your behalf. Banks only offer their own products with no price competition.

Question 40

Can I get a mortgage with student loan debt?

Accepted Answer

Yes, lenders count 1% of the balance or your actual payment in debt-to-income ratios. Income-based repayment plans can help with qualification.

Redwood City Mortgage FAQ — Your Questions Answered