Question 1

What credit score do I need to buy in South San Francisco?

Accepted Answer

FHA loans accept 580 credit scores with 3.5% down. Conventional loans start at 620, but you'll get better rates above 740 in this price range.

Question 2

How much should I put down in San Mateo County?

Accepted Answer

Many South San Francisco buyers put down 10-20% on conventional loans. Jumbo loans over $806,500 typically require 15% minimum, though some programs accept 10%.

Question 3

What's the difference between FHA and conventional loans here?

Accepted Answer

FHA allows lower credit and 3.5% down but charges mortgage insurance for life. Conventional drops PMI at 20% equity and works better for higher-priced homes.

Question 4

Can I buy a condo in South San Francisco with FHA?

Accepted Answer

Yes, if the building is FHA-approved. Many older complexes near downtown aren't approved, which limits your options.

Question 5

Do I need a jumbo loan in South San Francisco?

Accepted Answer

Anything over $806,500 in San Mateo County requires jumbo financing. That covers most single-family homes and many condos here.

Question 6

How do bank statement loans work for self-employed buyers?

Accepted Answer

We use 12-24 months of business or personal bank deposits instead of tax returns. Works well for 1099 contractors and business owners with write-offs.

Question 7

What's a DSCR loan and when does it make sense?

Accepted Answer

DSCR loans qualify rental properties based on rent income, not your personal income. Popular with investors buying near BART or in high-rent neighborhoods.

Question 8

Can I use a VA loan in South San Francisco?

Accepted Answer

Yes. VA loans require no down payment and no PMI, even on higher-priced homes. San Mateo County has a $1,209,750 VA loan limit as of 2026.

Question 9

What documents do I need to get pre-approved?

Accepted Answer

W-2 buyers need two years tax returns, recent pay stubs, and bank statements. Self-employed buyers provide business returns and a year-to-date P&L.

Question 10

How long does it take to close in South San Francisco?

Accepted Answer

Most purchase loans close in 25-35 days. Cash-out refinances take longer due to appraisal backlogs in San Mateo County.

Question 11

What are closing costs on a $1 million home here?

Accepted Answer

Expect 2-3% in lender and title fees, plus property taxes and insurance reserves. On $1 million, budget $20,000-$30,000 total.

Question 12

Can the seller pay my closing costs?

Accepted Answer

Yes. Sellers can contribute up to 3% on conventional loans and 6% on FHA loans. Common in slower markets, rare in bidding wars.

Question 13

Should I pay discount points to lower my rate?

Accepted Answer

Only if you're keeping the loan 5+ years. In South San Francisco's volatile market, many buyers refinance within three years. Rates vary by borrower profile and market conditions.

Question 14

What's PMI and how do I avoid it?

Accepted Answer

Private mortgage insurance costs 0.3-1.5% annually on conventional loans under 20% down. You avoid it by putting 20% down or using a piggyback second mortgage.

Question 15

Can I buy with less than 20% down and avoid PMI?

Accepted Answer

Yes. An 80-10-10 structure uses a first mortgage at 80% LTV, a second mortgage at 10%, and 10% down. Common on jumbos over $1 million.

Question 16

How much income do I need for a $1.5 million home?

Accepted Answer

Most lenders cap debt-to-income at 43-50%, so you'd need $300,000-$350,000 annual income depending on other debts. Jumbo loans scrutinize reserves more than income.

Question 17

What if I'm 1099 and my tax returns show low income?

Accepted Answer

Bank statement loans calculate income from deposits, not tax returns. We typically use 50-75% of average monthly deposits, depending on the lender.

Question 18

Do student loans count against my debt-to-income ratio?

Accepted Answer

Yes. We use the payment on your credit report or 1% of the balance if it's deferred. High student debt limits buying power in expensive markets.

Question 19

Can I buy a two-unit property and live in one side?

Accepted Answer

Yes. FHA and conventional loans allow 2-4 unit purchases with owner-occupancy. You can use projected rent from the other unit to qualify.

Question 20

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

Accepted Answer

ARMs lock your rate for 5, 7, or 10 years, then adjust annually. They start 0.5-0.75% lower than fixed rates and work if you'll sell or refinance early.

Question 21

How do interest-only loans work?

Accepted Answer

You pay only interest for 10 years, then principal and interest after. Lower payments upfront, but you build no equity during the interest-only period.

Question 22

What are portfolio ARMs?

Accepted Answer

Non-QM adjustable loans held by the lender, not sold to Fannie Mae. They allow higher debt ratios and alternative documentation for self-employed borrowers.

Question 23

Can foreign nationals buy property in South San Francisco?

Accepted Answer

Yes. Foreign national loans require 20-30% down and use international credit and income. No U.S. credit history or Social Security number needed.

Question 24

What's an ITIN loan?

Accepted Answer

Mortgages for borrowers without Social Security numbers who file taxes using an ITIN. Requires 15-20% down and proof of income through tax returns or pay stubs.

Question 25

How do asset depletion loans work?

Accepted Answer

We divide your liquid assets by 360 months to create qualifying income. Good for retirees or buyers with large investment accounts but low W-2 income.

Question 26

Can I use stock or cryptocurrency to qualify?

Accepted Answer

Some lenders now allow verified crypto holdings for qualification on non-QM loans. Traditional lenders accept 70% of stock portfolio value as reserves.

Question 27

What's a bridge loan and when do I need one?

Accepted Answer

Short-term financing that lets you buy before selling your current home. Common in competitive markets where sellers favor non-contingent offers.

Question 28

How do hard money loans differ from traditional mortgages?

Accepted Answer

Hard money lends on property value, not your income or credit. Closes in days, not weeks. Used for fix-and-flip or when you can't qualify conventionally.

Question 29

Can I get a construction loan in South San Francisco?

Accepted Answer

Yes. Construction-to-permanent loans fund the build and convert to a standard mortgage at completion. Requires detailed plans and 20% down minimum.

Question 30

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

Accepted Answer

HELOCs are revolving credit lines with variable rates. Home equity loans are lump sums with fixed rates. Both use your home's equity as collateral.

Question 31

Should I get pre-qualified or pre-approved?

Accepted Answer

Pre-approval verifies income and credit with documentation. Pre-qualification is an estimate. South San Francisco sellers only take pre-approved buyers seriously.

Question 32

How many months of reserves do jumbo lenders require?

Accepted Answer

Most want 6-12 months of mortgage payments in liquid reserves after closing. Higher debt ratios or investment properties require more.

Question 33

Can I buy a rental property with a conventional loan?

Accepted Answer

Yes, but you need 15-25% down for investment properties. DSCR loans are easier if the rent covers the mortgage payment.

Question 34

What happens if rates drop after I lock?

Accepted Answer

Most lenders allow one float-down if rates drop significantly before closing. Fees and restrictions vary. Ask before locking.

Question 35

How does working with a mortgage broker help me?

Accepted Answer

We shop 200+ lenders to find the best rate and program for your situation. Banks only offer their own products, which rarely fit every borrower.

Question 36

Are rates still expected to drop in 2026?

Accepted Answer

Federal Reserve officials forecast multiple rate cuts later this year, though timing remains uncertain. Rates vary by borrower profile and market conditions.

South San Francisco Mortgage FAQs — Real Broker Answers