Question 1

What credit score do I need to buy a home in San Mateo?

Accepted Answer

Minimum 620 for conventional, 580 for FHA. Jumbo lenders want 700+ for the best rates in this price range.

Question 2

How much down payment do I need in San Mateo?

Accepted Answer

FHA allows 3.5% down, conventional 3-5%. Jumbo loans typically require 10-20% depending on loan amount and property type.

Question 3

What's the conforming loan limit in San Mateo County?

Accepted Answer

San Mateo County is a high-cost area with limits above the baseline. Most homes here exceed conforming limits and need jumbo financing.

Question 4

Do I need a jumbo loan to buy in San Mateo?

Accepted Answer

Probably. The median home price pushes most buyers into jumbo territory unless you're buying a condo or entry-level townhome.

Question 5

How long does it take to close a mortgage in San Mateo?

Accepted Answer

Conventional loans close in 21-30 days. Jumbo and alternative doc loans can take 30-45 days with stricter underwriting.

Question 6

What documents do I need to apply for a mortgage?

Accepted Answer

Two years of tax returns, two months of bank statements, W-2s or 1099s, and pay stubs. Self-employed? Add profit and loss statements.

Question 7

Can I buy a home in San Mateo with a 1099 income?

Accepted Answer

Yes. We use 1099 loans that qualify you based on stated income or bank deposits instead of tax returns.

Question 8

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows lower credit scores and smaller down payments. Conventional has stricter credit rules but no upfront mortgage insurance premium.

Question 9

Should I get a 15-year or 30-year mortgage?

Accepted Answer

30-year gives lower monthly payments. 15-year costs more monthly but cuts total interest and builds equity faster.

Question 10

What are closing costs in San Mateo?

Accepted Answer

Expect 2-5% of the purchase price. That includes lender fees, title insurance, escrow, appraisal, and recording fees.

Question 11

Do I have to pay PMI on a jumbo loan?

Accepted Answer

Not if you put 20% down. Below that, some jumbo lenders charge PMI or bump the interest rate instead.

Question 12

Can I use a bank statement loan in San Mateo?

Accepted Answer

Yes. Bank statement loans work well for self-employed buyers who write off income. We use 12 or 24 months of deposits to qualify you.

Question 13

What neighborhoods in San Mateo are most affordable?

Accepted Answer

Relative to the city average, areas east of El Camino Real trend lower. But affordable is a stretch in this market.

Question 14

How competitive is the San Mateo housing market?

Accepted Answer

Very. Strong buyer demand and limited inventory mean you'll likely face multiple offers on desirable properties.

Question 15

Can I waive the appraisal contingency in San Mateo?

Accepted Answer

You can, but it's risky on a jumbo loan. If the appraisal comes in low, you'll need cash to cover the gap.

Question 16

What's a DSCR loan and who uses it in San Mateo?

Accepted Answer

DSCR loans qualify investors based on rental income, not personal income. Popular for buying income properties or second homes here.

Question 17

Do I qualify for a VA loan in San Mateo?

Accepted Answer

If you're a veteran, yes. VA loans allow zero down and no PMI, but most San Mateo homes exceed VA loan limits.

Question 18

What's an adjustable-rate mortgage and should I consider one?

Accepted Answer

ARMs start with a lower fixed rate for 5, 7, or 10 years, then adjust. They work if you plan to sell or refinance before adjustment.

Question 19

Can foreign nationals get a mortgage in San Mateo?

Accepted Answer

Yes. Foreign national loans require larger down payments, typically 30-40%, and higher rates than domestic borrowers pay.

Question 20

What's an asset depletion loan?

Accepted Answer

It qualifies you based on liquid assets like stocks or savings instead of income. Useful for retirees or people with variable income.

Question 21

How much income do I need to buy a $2 million home in San Mateo?

Accepted Answer

Depends on your debts and down payment. Rough estimate: $400-500k annual income with 20% down and minimal other debt.

Question 22

Can I get a mortgage if I'm self-employed in tech?

Accepted Answer

Absolutely. We use profit and loss loans, bank statement loans, or asset depletion depending on how your income flows.

Question 23

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 are lump sums with fixed rates and terms.

Question 24

Should I buy points to lower my interest rate?

Accepted Answer

Only if you're staying in the home long enough to recover the upfront cost. Break-even is usually 3-5 years.

Question 25

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

Accepted Answer

Bridge loans let you buy before selling your current home. They're short-term and expensive but useful in competitive markets.

Question 26

How does the debt-to-income ratio affect my mortgage approval?

Accepted Answer

Lenders want your total monthly debts under 43-50% of gross income. Jumbo loans often require lower ratios around 38-43%.

Question 27

Can I roll closing costs into my mortgage?

Accepted Answer

Not on a purchase loan. You can ask the seller to cover costs or finance them on a refinance.

Question 28

What happens if the appraisal comes in low?

Accepted Answer

You negotiate a lower price, bring extra cash to close, or walk if you have an appraisal contingency.

Question 29

Do I need flood insurance in San Mateo?

Accepted Answer

Only if you're in a FEMA flood zone. Your lender will require it before closing if the property qualifies.

Question 30

What's the rate difference between conforming and jumbo loans?

Accepted Answer

Jumbo rates run 0.25-0.75% higher than conforming. Rates vary by borrower profile and market conditions.

Question 31

Can I use gift funds for my down payment?

Accepted Answer

Yes. Most loan types allow gifted down payments from family. You'll need a signed gift letter and proof of transfer.

Question 32

What credit score gets the best jumbo loan rates?

Accepted Answer

740 and above unlocks the best pricing. Below that, expect rate hits at every 20-point drop.

Question 33

How much are property taxes in San Mateo?

Accepted Answer

Roughly 1.2% of assessed value annually, plus local assessments. A $2 million home runs about $24,000 per year in property tax.

Question 34

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

Accepted Answer

Yes. ITIN loans are available with larger down payments and higher rates than SSN-based loans.

Question 35

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

Accepted Answer

Portfolio ARMs are held by the lender, not sold to Fannie or Freddie. They offer flexibility for non-standard income or property types.

Question 36

How do I choose between FHA and VA loans?

Accepted Answer

If you qualify for VA, use it. Zero down and no PMI beats FHA's upfront and monthly mortgage insurance.

Question 37

What happens if I miss a mortgage payment?

Accepted Answer

You're reported late after 30 days. It damages your credit and can lead to foreclosure if payments stop for months.

Question 38

Can I refinance out of PMI after closing?

Accepted Answer

Yes. Once you hit 20% equity through payments or appreciation, you can refinance to drop PMI.

Question 39

What's the earliest I can lock my interest rate?

Accepted Answer

Most lenders offer rate locks once you're in contract. Locks typically last 30-60 days depending on the loan type.

Question 40

Do I need a real estate attorney in San Mateo?

Accepted Answer

California uses escrow companies instead of attorneys for most transactions. You're not required to hire one unless you want legal advice.

San Mateo Mortgage FAQs — Answers from Local Brokers